From?Ted Gest:
District of Columbia Attorney General Irvin Nathan announced yesterday that Southwest Community House Association, a social services organization in D.C. since 1901, has been placed in receivership.? The receiver, Lisa Burford, was appointed on December 14 by Superior Court Judge Todd Edelman and charged with recommending a ?plan, if feasible, for returning [the association] to its nonprofit purposes of providing vital services to low and moderate income residents in the Southwest D.C. community.?
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Southwest Community House Association consented to the receivership, which the District requested in a civil complaint alleging that the association, after suffering a series of financial and legal setbacks, failed ?to maintain a presence in Southwest D.C. for the benefit of the community it was established to serve, and historically did serve.?? The District said in its complaint that the association?s access to grants ? its primary source of funding ? was cut off in 2006, after an audit of its finances showed irregularities.
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In mid-2006, Southwest Community House Association sold its only asset, a building at 156 Q Street, S.W.? Since then, the association has not maintained an office and has not engaged in or supported substantial charitable activity.? The lawsuit followed an investigation by the Office of the Attorney General into the association's corporate management and finances.
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The Attorney General is authorized by the District law to seek a receivership over a nonprofit corporation that continues to act contrary to its nonprofit purposes.? The receiver, Ms. Burford, is a D.C.-based consultant for nonprofit organizations.
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