Prelude to foundation

The State Board of Elections encouraged the N.C. Legislative Black Caucus to set up a nonprofit.

In a Dec. 31, 1991, letter, then-chairman state Sen. James Richardson asked the Board of Elections' deputy director if it could legally accept contributions from political action committees.

"We are interested in knowing if there are other ways the N.C. Legislative Black Caucus Scholarship Fund can accept future checks from political action committees without being a PAC," he wrote.

In a Jan. 7, 1992, response, deputy director Yvonne Southerland said a nonprofit would be fine.

"The State Board of Elections would not take exception to civic contributions by PACS to a separate, segregated N.C. Legislative Black Caucus Scholarship Fund in which only the Scholarship Fund monies are kept," she wrote.

The caucus, which had been a registered nonprofit since 1986, then set up a nonprofit.

Hat Tip: Lynn Bonner