Philanthropic Media Forum Probed in N.Y.
The New York state attorney general is investigating the Arlington, Va.-based Freedom Forum, a major funder of journalism organizations and programs, for possible financial irregularities, the organization confirmed Wednesday.
A representative of the New York state attorney general’s office, Leslie Gersing, said investigators are looking into whether the Freedom Forum’s expenditures have been “excessive or imprudent.” New York officials have jurisdiction because the organization is still registered in Rochester, N.Y., its former headquarters.
Freedom Forum officials declined to say what prompted the investigation.
The Freedom Forum spent $34.4 million on operating and administrative expenses in the fiscal year ended last May 31. It made $20.2 million in contributions, gifts and grants in the same period, according to an article to be published in the Chronicle of Philanthropy, which follows charitable activity.
The forum paid its chairman, Allen H. Neuharth, $131,000, which the Chronicle said is more than 10 times the median fee paid to board chairmen of similar-sized foundations. It also outspent other foundations by a wide margin for professional fees, travel and meetings and “other expenses,” the Chronicle is expected to report.
The Freedom Forum was formerly known as the Gannett Foundation, after its founder, newspaper publisher Frank Gannett.
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