In reviewing the most recent and available (2007) IRS 990’s for the Minneapolis’ Stairstep Foundation, Part II: Statement of Functional Expenses and Part III: Statement of Programming Service Accomplishments, IBNN has questions as it pertains to line item expenditures and also programming dollars for the calendar year 2007.

The reason for concern is that in 2007 Minneapolis had a significant rise in Gang activity and Gang related deaths within the Black, Hispanic, Asian and Somali communities  and we were wondering what programs affected the reduction or engagement with local Gang leaders.

In the summer of 2007 community activist Mr. Spike Moss met on a regular basis with local gang leaders in the basement of New Salem Baptist Church.  Mr. Moss fed gang members and discussed alternatives to violent behavior at the risk of his life. Mr. Moss’s work was overlooked when funding hit the table.

IBNN’s question to the Stairstep Foundation: “What happened with the earmarked dollars for Gang engagement?”  This is just a first in many questions.

This format is  an attempt to gain clarity on what the foundation does as it pertains to the Black population in north Minneapolis.

1. In Part II (page 2) of the Stairstep Foundation’s 2007 IRS 990’s: Statement of Functional Expenses, line item 30 it states: Professional Fundraising Fees of $86,496.00.

IBNN’s question is:

“What company or firm did the Foundation use for professional fund raising services in 2007, and who benefited from this paid or listed amount?”

2. In the 2007 IRS 990’s page 3: Part III: Statement of Programming Service Accomplishments the Stairstep Foundation lists item A: Economic Development –“This program recognizes ideas and funds strategies that strengthen the African American Business community. The program maintains a small business chamber of commerce.” Grant and allocations were $142,726.00.  I

IBNN has the following questions:

“What is the function of the “small business Chamber of Commerce?”  What local businesses have benefited from the chamber; how were funds distributed and to who?”

Has Barbara Davis (Ken Davis BBQ mogul) of the Black Chamber of Commerce been alerted to these dollars? If not, why?

3. Also in Part III of the 2007 IRS 990’s - Statement of Programming Service Accomplishments, item B, the Stairstep Foundation lists the Community Reclamation Project which states: “This program works in conjunction with community churches to bring young men and women out of gangs by providing an alternative to Gang activity so the youth can become an example of life after Gang activity. Grants and allocations were $178,663.00;

Again, IBNN has the following questions:

A. “Can the Stairstep Foundation show 1 gang member that was positively affected by the funds and mission of the Gang engagement dollars?”

B. “Who benefited from the dollars allocated for this project and what did the Stairstep Foundation do in years 2008 and 2009 as it relates to Gang engagement?”

C. “What were the names of the Gangs the Stairstep Foundation collaborated with? (Bloods, Crips, Vice Lords, the Mafia, etc…?)”

4. In Part III the 2007 IRS 990’s - Statement of Programming Service Accomplishments, item C, the foundations lists, “Family Healing and Restoration – A service and referral network within collaborating faith-based organizations serving Hennepin County’s African American population.” Allocations to the program were $371,541.00

Questions:

A. “What programs were developed and which faith-based organizations collaborated with the Stairstep Foundation to include a list of your successful measurable outcomes – if any.”

B. How much did you contribute to the Minneapolis Urban League Family Day, Juneteenth Celebration or Black History month events in the community?”

5. Community Information. According to the 2007 IRS 990’s for the Stairstep Foundation, on page 3; Part III it states, that the foundation “Publishes and/or showcases engagement and thought-provoking materials designed to provide exposure, provoke constructive action and/or facilitate discussion in the community around issues that impact the quality of our lives and our future direction.” Grants and allocations were $30,010.00.

IBNN asks:

“In 2007 the Stairstep Foundation was “mute.”  How were the dollars used to do outreach in accordance with the Foundations stated information from the 2007 990’s? The community has not seen anything as it pertains to this community outreach amount. Can you explain?

6. The Stairstep Foundation list Mr. Randolph Staten as a paid consultant for the Foundation with funds to Mr. Staten in the amount of $63,000.00 in 2007.  Our question would be, “What projects - based on the Stairstep Foundations obvious lack of community engagement did Mr. Staten “consult” on?

Summary:

With a total of $722,940 in Program Service Grants and Allocation and over $100,000.00 more paid out for consulting services and fund raising fees in the year 2007, based on factual information taken from the Stairstep Foundations 2007 IRS 990’s, what was the deliverable’s to the Black community? Furthermore, will the Stairstep Foundations 2008 and 2009 IRS 990’s show the same questionable line items as it pertains to community engagement?

According to the foundations year end net assets or fund balances for 2007, the foundation appeared to be going into 2008 with a $1 million plus deficit.

How is this possible?

The Black community in north Minneapolis has not heard a “peep” of programming from the Stairstep Foundation.  This is in line with the ongoing lack of program services which has been abandoned by local non-profits and social service agencies meant to “serve the under-served” community in north Minneapolis.

The Stairstep Foundation is yet another example of how social-service agencies become an “institution unto themselves” with large salaries and pay-outs with no community service.

Staff of the Stairstep Foundation is welcomed to respond at info@ibnn.org. Your emails and comments will be published in Part 4 of the Stairstep Foundation saga titled, “The Funders from Hell – Foundations that continue to fund the Stairstep Foundation and choose to turn their heads on sound business practices and results from the foundation.”

Donald is the editor and chief of the Independent Business News Network in Minneapolis. Visit IBNN at www.ibnn.org. For more information or to leave a comment, email us at info@ibnn.org.

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