Teachers' Union Asks IRS to Examine Non-profit Status of White Hat Management in Ohio

http://www.ohio.com/news/17077371.html

The Ohio Federation of Teachers has asked the Internal Revenue Service to examine the non-profit status of charter schools managed by White Hat Management. Lisa Zellner of the OFT said that a ruling against the White Hat charter schools would force the company to pay taxes "like the rest of us," and possibly jeopardize their standing, because state law requires all charter schools to be nonprofit. The OFT complaint states: that "contrary to the impression created by the term 'community schools,' as charter schools are also known, the White Hat schools did not spring from community or parent involvement. Parents and community activists did not create governing authorities that, in turn, chose a management company from a variety of alternative operators. Instead, documentation suggests that White Hat negotiated with the state about the creation of the schools, set up the separate corporate school entities, and also handpicked the board members, many of whom serve on a number of Hope Academy or Life Skills Centers Boards." White Hat issued a statement calling the OFT's accusations a publicity stunt. "'The Internal Revenue Service is aware of the community school structure and White Hat Management's contract provisions making the management company responsible for all start-up and day-to-day operations of its contracted schools," the press release noted.

Source: Akron Beacon Journal
Date: 03/28/2008