Beard Foundation: Cooks' Books?

[Jason Perlow]

http://www.nydailynews.com/front/story/212694p-183133c.html

Not sure how we missed this on Friday.

[cdh]

Blimey!

Was just there for dinner last night and nothing looked amiss... Hopefully the place hasn't been financially damaged by whatever shenanigans that have gone on.

[Fat Guy]

My perception is that there has long been widespread dissatisfaction with the way the foundation conducts many of its activities. In too many ways, the Beard organization comes across as being more about its own infrastructure than about doing good for the culinary community by fulfilling its mission to enhance American cuisine and perpetuate the memory of James Beard. Of course it is very important for organizations to ensure their longevity, but that should not be an end in itself. And if there is a scandal at the James Beard organization, we should learn as much as possible about it because so many eGulleters support that organization directly and indirectly in so many different ways.

If any good comes of this, it will be that this chink in the Beard foundation's armor will make people in the culinary world less afraid to speak out regarding the flaws in that organization's operations. In a similar way to how Zagat maintains something of a stranglehold over the restaurateur community, Beard has set itself up such that most culinary professionals will not criticize it publicly, even though I've rarely heard any culinary professional say anything flattering about the organization in private.

At the same time, the Daily News story is poor. It is short on facts and long on innuendo. And it's not even clear to me that the foundation was required to give that reporter its form 990. My understanding is that if you publish your form 990s on the Internet you don't have to provide them in response to individual requests. The Beard organization, like many not-for-profits, publishes its 990s on Guidestar. Then again, the most recent one or two don't seem to be on there yet.

[hannnah]

My understanding is that if you publish your form 990s on the Internet you don't have to provide them in response to individual requests.

No, nonprofits are still required by law to make Form 990s available for public inspection upon request, even if they have them posted on the Web. And, they're supposed to be current - the last one Guidestar lists for the Beard Foundation is from 2002.

IRS FAQs on 990 disclosure are here.

[Fat Guy]

No, nonprofits are still required by law to make Form 990s available for public inspection upon request, even if they have them posted on the Web.

According to the Lawyers Alliance for New York, "organizations that make 990's available through internet posting are excused from disclosure." The IRS page you linked to is consistent with that interpretation: "Making documents widely available satisfies the requirement to provide copies of the documents." The lack of current documents on Guidestar probably changes all that, but fundamentally if you make your 990s available online you shouldn't have to give them to reporters who show up in person demanding them, and reporters shouldn't be implying that you have somehow violated the law by not giving in to their demands.

[Really Nice!]

Folks, I think we're missing the main point of the article.

Lowdown hears that hot-tempered supermodel Naomi Campbell and babe-magnet movie director Brett Ratner - who last spring were rumored in the press to have been romantically linked - spent a recent evening cozying up to each other at the L.A. hotspot Prey.

Ratner's current girlfriend, tennis star Serena Williams, was nowhere in sight.

A Lowdown spy reports that true to form, Campbell "pitched a diva fit" when their table wasn't ready, "ranting and flailing her arms." She then demanded that security escort her in, lest she actually have to brush up against any common folk en route to her VIP table.

Goodness me!

[hannnah]

But, the IRS specifically says the following:

If an organization makes it documents "widely available" must it make the documents available for public inspection?

Yes. Making documents widely available satisfies the requirement to provide copies of the documents. This requirement is separate from the requirement to make the documents available for public inspection. There is no exception (similar to the widely available exception) from the requirement to make documents available for public inspection.

Granted, neither the regulation itself nor the FAQs are clearly written, but it certainly does sound like the Daily News was well within their rights to show up and "demand" to see the documents - even if they had to sit there and transcribe the whole document by hand to get a copy of it.

Alternately, someone could send Naomi Campbell to rant and flail her arms at them until a copy was produced.

[Fat Guy]

Either way, somebody from eGullet will make a formal written request for these documents. Is Naomi Campbell a member? If not, I'll ask someone else to do it.

[Bond Girl]

I've actually been wondering about this for a while. As someone who can't say "no" to fundraisers, the Beard Foundation managed to sell me a several benefit events that I don't even go to. So, if I were to add up the money that they say they raised, the place would have had a trust the reserve size of a small third world country. But, I just chalk it up to the inefficiencies of a non-profit org.

[Gerry Dawes]

If you are the chef from Bond Street, I have to say I greatly admire your food, though it has been awhile since I was there.

"As someone who can't say "no" to fundraisers, the Beard Foundation managed to sell me a several benefit events that I don't even go to. So, if I were to add up the money that they say they raised, the place would have had a trust the reserve size of a small third world country. But, I just chalk it up to the inefficiencies of a non-profit org."

I take it you are saying that you bought tickets to several events, but didn't go - - a "no-show?" Yet you have added up the amount of money they raised, deducted all expenses associated with those events and have come up with "a reserve the size of a small third world country." Maybe you should go down there and audit the books.

[Jason Perlow]

New information at the New York Times:

http://www.nytimes.com/2004/09/06/nyregion/06beard.html?hp

"We think of it as a kind of benevolent shakedown operation," said Anthony Bourdain, chef at Les Halles, a popular New York bistro, who is one of thousands who have donated goods and services to the Beard House since the program began in 1987.

Mr. Bourdain said he thought the money could be better spent. "What about immigration assistance for cooks, or professional counseling?" he said. "That would actually help chefs, not just the people who eat dinner at the Beard House."

[tanabutler]

Oooh, I wish they would print the whole Bourdain conversation; he's always worth reading. I'm sure I'm not alone in wishing he were posting here again.

That story reminds me of an old Ross Perot (I think) quote, "How you gonna get the fat to cut the fat?" [talking about government reforms].

It will be interesting to see how this scandal plays out.

[Fat Guy]

Yeah, Tony hasn't posted in 6 days. What's up with that?

For the past several years, this site right here has been one of the only places you could go to read actual criticism and questioning of the Beard Foundation. The tremendous power of the Beard organization has created a code of silence even greater than the one surrounding the Zagats, because while the Zagats are able to intimidate the restaurant industry into silence the Beard Foundation through its stranglehold on the Oscars of the culinary world (the James Beard Awards) intimidates both restaurant industry people and journalists.

Not so here. Tony, various other eGulleters, and I have been digging at the Beard Foundation for years (I'm not aware of other Beard Award winners who have been as openly critical, though they may be out there). In May 2003, for example, long before the Daily News (that's where we saw the story, though the Times cites the New York Post) broke this story or the Times researched it in depth, we were asking many of the same questions and noticing some of the same accounting inconsistencies. Tony was asking all the right questions:

Where DOES all that money, corporate participation, dues, revenue, free labor, free food go?

Is there a library or resource facility or job data base or employment assistance for chefs, cooks or culinary students?

Maybe an assistance or legal counselling program for all the cooks in this country who need help with immigration status?

A scholarship program--in scale with revenue?

What are salaries and expenses of Beard employees/officers?

When Beardie pashas are say..visiting San Francisco--and have a nice meal at a restaurant and put it on their Beard card. Where's that money come from? Do they reimburse the Foundation? Or is that "research"?

Think there's some Kitchen Aids, Vulcans and Cervena lamb kicking around some private kitchens?

Are they considered a not-for-profit?

What is average cost/benefit to a restaurant who agrees to pay all expenses (labor, travel, food cost, lodging, dues) to cook at Beard House.? Is there then a commesurate rise in their business?

Who LIVES in that House anyway--and how much money do they NEED?

They're sure not spending it on the kitchen.

I noted at the time, for example:

The total amount of scholarship money available looks rather small, maybe a couple of hundred thousand dollars if you add them all together (somebody can do the math; they're all listed). This is peanuts in an organization the size of the Beard Foundation. The thing is, that's not even the right comparison -- revenue v. scholarships -- because most of the scholarships appear from the listing to be financed by outside sources. That's what "memorial" usually means, for example -- somebody died and left money to finance a particular scholarship, usually in the form of an endowment large enough to throw off the right amount of interest each year to cover the scholarship plus administration expenses.

We've been noticing, commenting, and trying to be as fair as possible in the process. It's very sad to see the potentially great institution of the Beard House come to this, but it underscores the value of what we do here and the importance of being independent, willing to lose friends in pursuit of truth, and beholden to noone. Ironically, that's part of the reason that, when it came time to secure funding for our organization, we chose the not-for-profit route. This scandal at the Beard House, in addition to the Beard House's long history of institutional defects, underscores the need for nonprofits like ours to be vigilant in how they utilize the funds that have been entrusted to them. It is understandable for a nonprofit to have office expenses, staff expenses, and the like -- it is after all a type of corporation, one without the goal of profit for owners and investors but with corporate expenses nonetheless. But there's a point at which a nonprofit that loses sight of its mission becomes all about feeding the beast and not at all about serving a public constituency.

So I hope I speak for all eGulleters when I say that, as we start down the path towards our own not-for-profit form of organization, we let the Beard Foundation be an example of what not to do. Although, to be fair, the Beard House has done many good things as well -- those too should serve as examples.

[Ruth]

All the questions that have been posed are discussed regularly by long-time members. Unfortunately we have virtually no input . The current President rarely appears at the dinners and isolates himself from the members. When Peter Kump was President he was frequently at the Beard House and had a willing ear. The Board of Trustees acts as a rubber stamp. Even a non-profit is still a business and should be run efficiently. I have been told by several chefs that they simply could not afford to cook a dinner at the House. Surely at least half of what we pay for these dinners should be allocated to the chefs. Hopefully the current publicity will result in a major overhaul.

Edited September 6, 2004 by Ruth (log)

[bourdain]

Just read the article and I have to say that even I--at my most cynical and suspicious had no idea of the degree to which these schnorrers having been apparently raking off the cream. 4.7 MILLION taken down last year--and a paltry 29,00 spent on scholarships. I am also deeply suspicious of what they say they spend on throwing those meals as so much is donated. I gather that their definition of "expenses" might differ with that of chefs. A very informative piece--written in measured Times style--but if you extrapolate/read between the lines you get a very ugly picture. They should lose their tax exempt status--apologize to the industry that's kept them "relevant" (in spite of their general uselessness), and promptly fall on their swords for their shameful, SHAMEFUL mismanagement.

I hope they shut the place down and turn it into a methadone clinic.

[Jason Perlow]

If the place does go down, Tony, it will also devalue the James Beard awards that many writers and chefs rightfully (or in some cases not so rightfully) earned. Which will be unfortunate.

Its also ironic this is all coming down right after Julia Child's death -- Julia was one of the founding members, along with Barbara Kafka and several others.

[StudentChefEclipse]

Would Julia Child really approve of this kind of shenanigans? I would like think not. I would also like to think that winning a Beard Award, either as chef or as writer, really meant something. Though I have, sadly, been exposed to a few chef who win the award then slack off on quality in their restaurants or who grow too snobby to live.

Drats.

I think the organization could do some good, once they get out of that more, More, MORE for us mentality.

[cdh]

Now that I think of it, in my several years of membership at Beard, there has been no information at all about how one would get involved in the organization and running of the place.

A non-profit that is not desperate for officers and staff is somewhat suspicious, now that I think of it. Paying somebody too much somewhere along the chain of command.

[skchai]

This is the part that worries me the most:

In 2001, the last year for which tax records are available, about $3.5 million of $4.3 million in revenue came from dinners and events. The foundation reported that it spent almost $3 million to put on those events.

. . .

Chefs who cook at the Beard House are offered a $15 to $25 reimbursement for each guest, which many chefs say they donate back to the foundation. The chefs are required to cover all other costs, including food, wine, travel and lodging.  Additionally, hundreds of chefs work free every year at the foundation's May awards gala and other fund-raising events, such as a coming benefit on Sept. 21st sponsored by The New Yorker magazine.

So, if I'm adding things up right, cost to Beard House of food production at the dinners and events amounts to between 0-25% of revenue, yet the total cost to Beard House of putting the events is about 85% of revenue. So where is this remaining 60-85% of revenue going to? Not administration or publicity, since these are apparently accounted for separately. . .

[conchchowder]

I'm ready to put up $100 to get a foundation started so we can help talented, financially strapped culinary students into our craft. When do we start or where do I help?

[Gerry Dawes]

Where DOES all that money, corporate participation, dues, revenue, free labor, free food go?

A valid question.

Is there a library or resource facility or job data base or employment assistance for chefs, cooks or culinary students?

There is a library, but is the rest a stated mission of the Beard Foundation?

Maybe an assistance or legal counselling program for all the cooks in this country who need help with immigration status?

Was that a stated mission of JBF? Is that the responsibility of JBF? Or is that a suggestion? It is certainly not a valid indictment in this situation.

A scholarship program--in scale with revenue?

Apparently not.

What are salaries and expenses of Beard employees/officers?

Employees or one thing, President and Trustees are another. Some employees are salaried. Ex-President Len Pickell and the trustees were not.

When Beardie pashas are say..visiting San Francisco--and have a nice meal at a restaurant and put it on their Beard card. Where's that money come from?

What Beard Foundation credit cards? It is my understanding that there is no such thing. From what I have seen, most of the Beard hierarchy are pretty well off and pay for their own meals, though I am sure that some chefs have comped some of them on occasion.

Do they reimburse the Foundation? Or is that "research"?

Does the above answer that?

Think there's some Kitchen Aids, Vulcans and Cervena lamb kicking around some private kitchens?

Do you have verifiable knowledge that your accusation is true? Proof?

Are they considered a not-for-profit?

From everything I have come to understand, yes.

What is average cost/benefit to a restaurant who agrees to pay all expenses (labor, travel, food cost, lodging, dues) to cook at Beard House.? Is there then a commesurate rise in their business?

Some of the chefs & restaurateurs on this board should chime in and answer that.

Who LIVES in that House anyway--and how much money do they NEED?

No one lives in that house, now that James "shower-in-the-nude-on-his-fire-escape" Beard is dead. (I personally shower with my clothes on.) ;-)

They're sure not spending it on the kitchen.

What were they supposed to do, tear out and enlarge the entire kitchen, destroying half the house in the process? At least they have gas now. Beard cooked on an electric stove.

Though I am not defending everything that goes on in JBF and have no real knowledge of whether any real "shenanigans" have gone on there, I do believe the Foundation has done a lot of good for the restaurant industry, for chefs and for the food world. Many chefs have become big-time celebrities because of the Beard Awards and I believe that the industry has greatly benefited from JBF's efforts. Perhaps, JBF has been too successful and grew too fast without a salaried, full-time CEO in place. I am sure more details will come out.

[cdh]

Where DOES all that money, corporate participation, dues, revenue, free labor, free food go?

A valid question.

Is there a library or resource facility or job data base or employment assistance for chefs, cooks or culinary students?

There is a library, but is the rest a stated mission of the Beard Foundation?

[...]

Think there's some Kitchen Aids, Vulcans and Cervena lamb kicking around some private kitchens?

Do you have verifiable knowledge that your accusation is true?  Proof?

Re the library-- what's in it, and when is it accessable by either the membership or the general public? I've been a member for a few years and never seen either the space, or its opening hours. Or is is reserved for those who know who to ask for access to it?

As to the speculation about the House Purveyors' stuff not being in the house... well... there are lots of house purveyors whose stuff isn't readily visible in the house. If they've purveyed, then where is the stuff? And even some of the visible stuff is somewhat questionable... for example all of the Illy espresso pods by the coffee setup in the sunroom downstairs. Nobody I've ever seen there in dozens of dinners has ever consumed one espresso. Now I've never asked for one, but I've never been offered the option either. Those things don't stay fresh forever, and if, for lack of use, somebody takes them away where they'll get used before they go off, I can't say I blame them... but if that sort of practice is just the tip of the iceberg, then... hmmmm... grrrr.... I'm a member too... where's my swag?!

Edited September 10, 2004 by cdh (log)

[intraining]

ok, i'd like to be involved with a new foundation, but am totally broke from school debt. isn't that non-profit?

i read the discussion and like what i'm hearing, in terms of taking a positive stance and creating and nurturing something new.

i called the beard house to volunteer numerous times and they never called back. i'm not one to grovel so that's old news.

i am so interested in being part of something new like this from the ground up. i'm only a newbie here but really enjoy the site.

with not much knowledge of the industry before day one of class back in may at ice, i can be useful with my ignorance and by being manipulated into an honest guy

[Fat Guy]

I've been in the library, on the top floor of the Beard House, so I can assure you all that it exists. My understanding is that library access is available to Associate Members of the Beard House, that being defined as those who make a $125 annual contribution. Of course higher membership categories also include this benefit.

[alacarte]

An interesting response from one chef on the Beard House scandal. (A little background: This refers to Paul Parker, the chef at Chez Sophie. The restaurant sends an e-mail letter to interested patrons, which also is posted on their website as well.)

Yes, we've read the articles in the New York Times about the troubles

at the James Beard Foundation. We even got a call Thursday from the

member of the program committee who ate at our restaurant and nominated

Paul to be a guest chef. He wanted to know if we were considering

bailing out of the dinner the Foundation has invited Paul to prepare at

the James Beard House in Manhattan on Monday, October 25...We remain convinced that the Foundation's goals are admirable and sound...Unlike "Kitchen Confidential" writer-chef Anthony Bourdain, who posted a note on the EGullet.com website suggesting that the Beard House be turned into a methadone clinic, we think that now is definitely the time to support  those people who have made the Beard Foundation a success.

edit: the full letter is now available on the website.

Edited September 10, 2004 by alacarte (log)