Jeopardizing Non-Profit Status
As defined by the Internal Revenue Service, the following can jeopardize an organization's non-profit status:
1. Inurement in non-profit organizations
Inurement generally refers to benefits conferred on insiders such as officers, directors and key employees of an exempt non-profit organization. Examples of prohibited inurement for nonprofit organizations include 1.) the payment of unreasonable compensation and 2.) the transfer of property for less than fair market value.
2. Political activities
A 501c3 organization may only engage in legislative activities to a limited extent and it is forbidden to engage in political activities.
Hawken School activities that may conflict with IRS rules
1. Scoot Looney’s $1 million salary
Extremely high compensation for the role at a level nearly that of the third largest university in the United States.
2. Scott Looney’s $600,000 home loan
Interest-free with no payments for nearly 14 years as noted in Hawken School's 990 reports.
3. Scott Looney's DEI agenda
The creation and promotion of politically driven diversity, equity and inclusion policies, departments and hiring.