AET Donors and Santa Monica College Foundation

In Santa Monica College Foundation's Form 990 "Return of Organization Exempt from Income Tax" for the year 1998, it states that its primary purpose from which it is exempt from income tax is to "raise funds to provide scholarships to SMC students." In its grants and allocations section, it states the following:

Santa Monica College Foundation funds over 280 student scholarships and specified educational and administrative programs at Santa Monica College. During 1998, the Foundation launched a $25 million capital campaign to provide funding for twelve separate capital projects, including the Madison Center Theater, the Academy of Entertainment & Technology, the Liberal Arts Building Replacement, Library Expansion, and additions to the Foundation's Endowment Funds for scholarships and other services provided by the College.

The Program Service Expenses total $4,039,075. The 990 form was signed by none other than Thomas J. Donner, acting as treasurer for the Santa Monica College Foundation. His signature appears next to the date May 15, 2000.

What's really interesting is a section of the 990 form that states that it is "not open to public inspection." Here's a screenshot I made:



What precisely is meant by "Computation of Excess Contribution Amounts"? Notice that four of the five donors listed are GTE Foundation, Intergraph Computer Systems, TODD-AO Studios West, and 3Com Corporation. In our Academy of Entertainment and Technology Donors list, Verizon, Intergraph Computer Systems, and 3Com Corporation are listed as benefactors to AET while TODD-AO Studios West is listed under patrons.

In our Index of AET Advisory Board & Entertainment Industry Partners, GTE, Intergraph Computer Systems, 3Com Corporation, and TODD-AO Studios West are all shown between the periods of December 1998 to June 2001, inclusive. Furthermore, in our article, "Rats Always Flee a Sinking Ship," we showed that Winniphred Stone, former SMC Dean of Distance Education, secured a $125,000 donation from GTE for videoconferencing for the Academy. So, all that said, is this how these companies secured their respective seats on AET's advisory board as well as their engraved names on the AET plaque? What was this money used for, who did it benefit, and what happened to excess contribution amounts? And once again, why is this information not open to public inspection?

SMC has failed to provide us with the tax returns for the Santa Monica College Foundation, alleging that it is an entity separate from Santa Monica Community College District. However, the primary purpose of the Foundation is to provide scholarships to SMC students. Additionally, current interim SMC president Thomas J. Donner acted in his dual capacity as treasurer of the foundation and chief business officer of Santa Monica College. Did these companies, by and through their donations to SMC, really benefit the students at AET? Did they provide any worthwhile services to the AET students in helping to secure jobs or scholarships? Only further probing into the financial statements of SMC as well as other crucial public records will help to unlock these mysteries.

-- Des Manttari,
Editor-in-Chief,
Phoenix Genesis

(c) 2005: Phoenix Genesis/MBS LP

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