We gather that the LNC netted $633,000 from the sale, on a gross of $650,000.
A usually reliable poster indicated that the purchase price was closer to $800,000, but there was a major roof leak and water damage.
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We gather that the LNC netted $633,000 from the sale, on a gross of $650,000.
A usually reliable poster indicated that the purchase price was closer to $800,000, but there was a major roof leak and water damage.
Comments are closed.
The justifications I recall for the LNC’s HQ necessarily being in the DC area don’t seem to have worn well.
One was the ability to DC/national media. These days, that’s easily done from anywhere, and I’ve seen “national LP figures” on national shows, appearing from wherever they happen to be physically at, for several years now. So far as I know, Nick Sarwark doesn’t have to physically travel to 30 Rock in NYC or to the Scarborough/Brzesinzki home studio in Jupiter, Florida every time they have him on.
Another was being located close to colleges/universities full of law, poli-sci, etc. students who could be turned into activists and volunteers. So far as I can tell, that was never even really pursued, let alone achieved.
“Physical footprint” just really isn’t an important thing for a political party HQ anymore. Phones can be forwarded, physical mail can be forwarded from/picked up at a DC PO box if having “Washington, DC” as the mailing address really seems like that big of a a deal. If there absolutely, positively has to be a physical location with a bored receptionist behind a desk, this would be more than sufficient:
https://www.zillow.com/homedetails/405-31st-Ave-21-Minot-ND-58701/444025191_zpid/
It was a useless white elephant anyway. But this doesn’t do anything to save their cratering finances when it’s still legally tied to the segregated building fund, because that has a higher donation limit than is allowed for unrestricted general fund donations. So now they have this pile of money sitting in that account they can’t really do anything with, or at least not anything they’d want to do (buy another building or refund to donors).
Refund to donors.
They are asking FEC about that. It’s not entirely clear. Too bad they never bothered to get FEC opinion on Kennedy scheme.
Has there been an FEC decision on how to handle proceeds?
I do not know if the FEC ever ruled on this.
Specifically – there is no issue when it comes to GAAP since the purpose of the temp restricted funds was to buy a building – which they did. So the “restriction” is lifted from an accounting standpoint.
However – this creates a huge distrust with the donors. This is the most successful fundraising effort in the history of the LP. To my knowledge – the 2nd most successful single fundraiser aside from this building fund – was the one they did back in the 90’s to move HQ from TX to DC (in terms of curr dollars).
So twice in the Party’s history donors had responded overwhelmingly to have a presence in the DC area.
Why would any donor trust this LNC or even a future one that their specified wishes for their donation will be followed?
Why would they trust this LNC or any future one that another Chair, employee or board member will not mis-use the funds for personal purposes against DC & Federal non-profit law if they do not go after those lost dollars?
The proper thing to do IMHO is what I suggested above – to regain trust – by offering building fund donors the following options:
a) Paying off current debt & upcoming immediate expenses
b) Ballot access for 2026 & 2028
c) Left ion a fund for a future HQ
d) Returned to donor
Perhaps even just offer this to the larger ones who gave $1K or more.
And go after AM of course!
Pretty damn sad. A lot of people have put in time and money and watched it get flushed down the drain. Just a bit of effort could have changed a lot and helped some people out.
If you don’t know, I resigned a few months ago due to the tolerance of harassing behavior by Malagon by Nekhaila and Darr. Nekhaila even ignored an official policy manual complaint – all that to say I have no say in this decision, and I am far happy before out of that toxic cesspool. It wasn’t that way during 2016-2019 however much people want to hate on Sarwark. With some notable exceptions, this LNC is utterly incompetent. Kids who have no business on a Board and Chair that should know better but has no spine. For me, my life has vastly improved.
I believe the best fundraising program in LP history has been proven to be the Joint Fundraising Committee arrangement with Team Kennedy. Food for thought.
Was it? 90% of the money that came in through that arrangement had to be sent back out to Kennedy/Trump.
Just quick math because I’m not looking at details, from the start of 2024 through July the LNC raised $9,482,946. The vast majority of that was tied to the Kennedy/Trump deal. The LNC spent $9,528,101. The vast majority of that was tied to the Kennedy/Trump deal. That’s a deficit of $45,000 over a year and a half.
Despite the unprecedented level of money coming in, the LNC is in a worse financial position than before the deal. Two of the reasons for that are that nearly all of the money was obligated to Kennedy and that the Kennedy deal itself contributed to regular donors turning away from the party.
Compare that to 2016, when the LP ran a qualified candidate AGAINST Trump and didn’t have party leadership pushing racist, antisemitic, Russian fascist sympathizing memes, and Trump endorsements. The LNC took in $2,668,940 and spent $2,501,775, resulting in a surplus of $167,000.
Smaller top line number but larger bottom line number. And all of the expenses were for the LP, rather than Kennedy/Trump.
The party was more financially successful running against Trump than with him. And we got a lot more votes, too. And voter registrations were rising rapidly, too, which is no longer the case. Aligning the LP with Kennedy/Trump/MAGA has been a disaster by every measure.
Agree.
Some, apparently, are willing to set aside their principles for fundraising purposes.
Not me.
The purchase price is a matter of public record: $825K
The current value, with a small investment for repairs ($25-50K) – would have netted about $800-825K – reducing the losses by about $200K – an excellent ROI. Yes, they could have fundraised (from one major donor) for this. They could have taken a loan. They could have borrowed from a donor.
If they sold a couple years ago – when a certain someone suggested – they would have perhaps received $900K plus.
The organization – as a matter of fairness even if not required by law – should have offered the donors to this project the opportunity to direct where these funds should go:
a) Paying off current debt & upcoming immediate expenses
b) Ballot access for 2026 & 2028
c) Left ion a fund for a future HQ
d) Returned to donor
Since 2022 it was known the building would be sold. It was going to happen because this board & last did not want to have a permanent presents in the DC area like the other 2 legacy parties. They did not believe in the message “we’re her to stay & be in your faces” – they did not want to participate in the political process of the federal government or trying to influence bills or messaging on a national level.
They should disband as a national party & simply operate at the state & local level.
They went over the last 3 or so years from needing several years to win back donors & members to perhaps now needing a decade or more to re-build.
The entire thing is sad.
“The organization – as a matter of fairness even if not required by law – should have offered the donors to this project the opportunity to direct where these funds should go”
Amen.
That money should be returned to all who donated specially to purchase the building.
And if there is any left over, that that money should be used to go after AM for embezzlement.
*specifically