A charity founded by a former Republican presidential candidate has paid Charity Watch a $5 million fine in a dispute over whether it should be a public charity or a private one, a court document filed Tuesday indicates.
The court document, which was first reported by Business Insider, also shows the foundation failed to comply with state laws requiring it to disclose donations to charitable groups.
The lawsuit filed in May by the nonprofit Good Shepherd Foundation says the nonprofit failed to report $4.5 million of donations between 2004 and 2014 to the Internal Revenue Service (IRS), which then reported the money to the state of Connecticut.
The IRS is responsible for enforcing federal tax law.
According to the document, Good Shepherd was registered as a charity in Massachusetts, Connecticut, and New York in 2004.
But it was later taken over by the Gooder Foundation, a nonprofit that later became the Good Conservancy.
The Good Conservacy, according to the court document and a public records request, filed the original claim in 2003.
The state of New York then filed an amended claim alleging that the Good Foundation’s failure to report charitable donations in 2004 and 2005 to the IRS violated state law, which requires charities to disclose the identities of their donors.
The amended claim was later settled.
The case is Good Shepherd v.
Gooder, 12-cv-01597, U.S. District Court, Southern District of New Jersey (NJ).