Hikind’s Campaign Donations To Wife’s Non-Profit Raise Election Law Questions

Written by Chris Bragg on . Posted in Campaigns/Elections, Daily.





Assemblyman Dov Hikind

For most of the past three decades, Brooklyn Assemblyman Dov Hikind, one of the state’s most powerful Jewish lawmakers, has run for re-election without serious opposition, accumulating a $1.1 million campaign war chest. Absent the need to pay political consultants, Hikind has instead used the money for a very different purpose, showering hundreds of thousands of dollars on a slew of non-profits stretching from his Borough Park district to Israel – a generally entirely legal practice under the state’s permissive election laws.

But even in the context of those broad rules, donations to at least one of the charitable groups raise questions about potential violations of state election law, several campaign finances experts said.

Going at least as far back as 1999, and with increasingly frequency in recent years, Hikind has given a total of nearly $43,000 in donations to a Manhattan-based non-profit and two heavily overlapping organizations. Hikind’s wife, Susan, has for years run the daily operations for at least one of the organizations, earning $80,000 a year at American Friends of Ateret Cohanim as its executive vice-president.

John Conklin, a spokesman for the New York State Board of Elections, said that donations from lawmakers cannot go to non-profits “controlled” by their relatives.

“Contributions to charities are a clearly approved use of campaign funds – unless that charity is controlled by a relative of the candidate,” Conklin said.

Conklin pointed to a 1997 New York State Board of Elections advisory opinion stating that if a politician gives money to charity, the lawmaker would be in violation of the law if a family member at the charity exercises “control over the disposition of the funds.”

According to Ateret Cohanim’s 2011 tax returns, Susan Hikind is the non-profit’s highest ranking paid employee, serving as one of its two “officers.” The other is Joseph Frager, the unpaid chairman of the board. But a spokesman for Assemblyman Dov Hikind, Yehudah Meth, wrote in an email that Susan Hikind did not control the non-profit’s spending, despite running its day-to-day operations and being one of the two directors. Susan Hikind, also known as Shani Hikind, is one of the organization’s more than 20 board members overseeing the nonprofit, according to 2011 tax returns.

“The organization employs 13 people,” Meth wrote. “Shani Hikind is one of them. All decisions regarding spending, programming and so forth are directed by the executive board, not Shani Hikind. The presumption that Ateret Cohanim is her organization or that she controls it or its finances is completely erroneous.”

Only one other person, Dan Matityahu, is listed on the group’s most recent 990 form as receiving payments – as a $120,000 outside consultant and fundraiser. Meth said the non-profit has three New York City-based employees, and 10 located in Israel.

City & State identified nearly $43,000 in donations Hikind has made to American Friends of Ateret Cohanim and two other groups, Jerusalem Chai and Jerusalem Reclamation Project, since 1999. At least publicly, there doesn’t seem to be much distinction between them: Ateret Cohanim’s website suggests that the names are essentially pseudonyms, and says the non-profit is simply “also known as ‘Jerusalem Chai’ and Jerusalem Reclamation Project.” The other groups do not have publicly available tax returns.

American Friends of Ateret Cohanim’s mission, according to its website, is “strengthening our Jewish roots and reestablishing thriving Jewish communities that are centered around educational institutes in and around the Old City of Jerusalem.”

In his own lengthy statement, Hikind noted that his wife’s fundraising for the non-profit had no bearing on the salary that she earns.

“It should be noted, for the record, that my wife’s salary is fixed and not tied in any way to the amount of contributions that she directly or indirectly brings in,” Hikind said. “Moreover, Shani’s salary has not increased in more than a decade, despite her undying dedication to her work. She is heart-and-soul devoted to the preservation of Jerusalem, which we both regard as crucial to the protection and survival of the Jewish people.”

The group listed annual receipts of grants and contributions ranging from $900,000 to $2.1 million in recent years – so Hikind’s campaign donations comprise only a small part of the non-profit’s overall revenue.

Hikind also noted that only a small portion of his overall charitable giving went to groups affiliated with his wife, noting that his campaign contributed a total of $103,000 over the past year, with less than 7 percent going to the charities affiliated with her.

Still, Susan Lerner, the executive director of Common Cause New York, said Hikind’s spending on his wife’s non-profit raises legal questions, though the election law remains vague and its enforcement has often been weak.

Similar questions have been raised about Brooklyn State Sen. Marty Golden’s campaign spending at a catering hall in Bay Ridge owned by his brother and run by his wife – but at least that spending could be construed as campaign-related, Lerner said. Under state election law, non-campaign related spending cannot go to “personal use.” The donations to Susan Hikind’s non-profit could violate that rule.

“This is more questionable, because it has nothing to do with politics,” Lerner added.

Hikind has also given campaign cash to two non-profits closely tied to his son, Yoni, who helps run the Yeshiva Simchas Chaim, a school that serves at-risk teenagers. Hikind gave that organization $10,500, according to campaign finance records, and another $22,500 to Our Place NY, its parent organization. But Dov Hikind said in a statement that Yoni Hikind did not draw a salary from his work at the yeshiva, and more specific information about individual employee salaries was not available in tax returns.





Tags: , , , , ,

Trackback from your site.

  • http://www.facebook.com/chris.bragg.5249 Chris Bragg

    Assemblyman Hikind also asked that we include his full statement, which is posted here:

    “In the last fiscal year (July 18, 2011 through July 16,
    2012), Friends of Dov Hikind contributed a total of $103,000 to various
    charities and organizations that I support. Of this, $7,000 (less than 7% of
    total contributions) went to Jerusalem Chai, the Jerusalem Reclamation Project
    and American Friends of Ateret Kohanim— organizations that my wife Shani is
    affiliated with. It should be noted, for the record, that my wife’s salary is fixed
    and not tied in any way to the amount of contributions that she directly or
    indirectly brings in. Moreover, Shani’s salary has not increased in more than a
    decade, despite her undying dedication to her work. She is heart-and-soul devoted
    to the preservation of Jerusalem, which we both regard as crucial to the
    protection and survival of the Jewish people. I am proud to continue to support
    this important cause.

    Of the $103,000 contributed from my campaign fund last year,
    $4,600 (less than 4% of total contributions) went to Yeshiva Simchas Chaim. I am
    proud of my son Yoni’s affiliation with Yeshiva Simchas Chaim. He does not draw
    a salary from the yeshiva.

    Regarding Our Place, I have been a proud supporter—both financially
    and spiritually—of this organization since its inception more than a dozen
    years ago. Our Place is dedicated to helping at-risk youth and I believe they
    do a superlative job. Our Place has numerous components and is affiliated with Yeshiva
    Simchas Chaim. Contributions made by Friends of Dov Hikind to Our Place have been
    designated specifically for Our Place, not the yeshiva, which I’ve contributed
    towards separately (as per above). In recent times, as a result of budgetary problems, Our
    Place was nearly forced to close its doors[i].
    I was delighted to be able to help them and contributions from my campaign fund
    to Our Place in the last fiscal year equaled $12,000.

    Everyone understands
    that these last five years have been financially
    difficult for most Americans and businesses, but no one has been hit
    harder
    than charitable organizations. I am grateful that I have been able to
    help many organizations that so greatly benefit our community. In the
    last fiscal
    year, these organizations included the Boro Park Jewish Community
    Council
    ($5000), Chesed Shel Emes ($4000), Mosdos Vizhnitz ($3000), Yaldei Zion
    v’Yerushalaim
    Moriah Nurseries ($4000), Masbia ($5000), Chai Lifeline ($2500),
    American
    Friends of Kesher ($6000), Bais Sara ($4000), Bikur Cholim of Boro Park
    ($3000), Bikur Cholim of Yad Yaakov ($3000), Blev Echod ($5000), and
    Nachas
    Health Network ($1500). I also contributed to various scholarships.

    Contributions from Friends of Dov Hikind are based on my core values: helping
    community members in need, helping organizations that serve our community, and
    helping essential organizations in Israel that I believe are vital to the
    long-term survival of the Jewish people. I intend to continue to support these
    organizations and am exceedingly grateful to G-d and my community for the
    ability to do so.”

    Dov Hikind

  • uri

    the jerusalem reclamation project, for which the american friends of ateret cohanim is a front, is a racial supremacist organization with the illegal and certainly uncharitable goal of clearing christian, muslim and other non-jewish palestinians out of certain areas of israeli-occupied east jerusalem, consensually when it can, by deception or violence when it must. officers of the organization have repeatedly admitted to international, english-language print journalists that they have engaged in deception concerning their charitable purposes for the purpose of receiving tax-advantaged nonprofit status. while a regular donor can always claim to have been duped by the organization’s claim to be an educational institution, dov hikind cannot. his participation is likely criminal, since it knowingly abets israel’s criminal occupation of palestine.

  • D. Bernard Hoenig

    A Letter to Chris Bragg:

    As the founder and first President of American Friends of Ateret Cohanim, I was appalled to read your misleading and factually inaccurate piece regarding our organization and the contributions of Assemblyman Dov Hikind. As an attorney and free-lance journalist, as well, I was particularly upset at how a journalist such as Chris Brag could have written an article that is nothing more than hearsay, speculation and innuendo.
    It is poor journalism, at the best. And at the worst, it is insulting to decent journalists who seek to accurately report the true facts.
    A good journalist would have investigated the facts before mouthing off such incorrect and untruthful statements; nor would he have used other people’s generalized statements to create the false impression that Assemblyman Hikind was violating campaign or election laws.
    Mr. Cragg – why don’t you set the record straight and not “invent” facts or think that your readers can be mislead into believing false information. Shani Hikind – who happens to be the wife of Assemblyman Dov Hikind – has been employed by the organization for many years at a straight, fixed salary. It is not “her organization” and she does not “run” the organization or “exercise control over the disposition of the funds.” She receives no commission from the funds raised by her for the purposes of the organization. Ateret Cohanim was in existence years before Shani Hikind came to work for us.
    The organization is “run” by an Executive Council of prominent businessmen and professionals who regularly meet. When not personally meeting, the Council Members are conferring with each other on an almost daily basi by phone or e-mail. In addition, they frequently confer with the Israeli office of the organization by e-mail, phone and in person. It is quite an efficient governing Board and the members are extremely careful to adhere to all New York and U.S. laws regarding Not-For-Profits.
    Policy, disposition of funds, goals and programs are decided by the Executive Council – not by Shani Hikind, We certainly look to her for her guidance, wisdom and experience. Just as in any organization or business, Shani Hikind is the Executive Vice-President and takes care of operating the New York office, does fund raising, pays the day to day operating costs (rent, mailings, approved salaries of all employees, etc.). But she takes her orders from the Executive Council.
    So when you suggest that Assemblyman Dov Hikind gives his wife monies “for personal use”, that is blatantly false. His contributions are treated just as any other contribution – for the purposes and functions of the organization. Mr. Hikind has never interfered with the operations of the organization or attempted to influence the officers and Council members or even said anything to anyone about his wife’s employment there. He has always acted with extreme propriety and kept his distance from the way the American Friends group is run, as an honest and dignified political figure should do. He is not involved in the operations of the organization in any way at all.
    I don’t know if you gave Susan Lerner (who you quote extensively to create the false impression that Assemblyman Hikind has violated campaign laws) all of the correct information but I highly doubt that she would have wanted her statements to be taken out of context by you, as you so deftly did.
    For the record, there is only one organization – American Friends of Ateret Cohanim, a New York Not-For-Profit organization that has been in existence for more than 30 years. “Jerusalem Chai” and Jerusalem Reclamation Project” are not, and were never, separate organizations as you seem to think. Each is merely a “d/b/a” (i.e. American Friends of Ateret Cohanim “doing business as”…). Jerusalem Chai (which means “Jerusalem Lives”) was officially filed as an assumed name with the Secretary of State of New York years ago, as was the assumed name “Jerusalem Reclamation Project” which, parenthetically, is infrequently used today. Why were these names adopted? Simply because they were catchy names and better expressed the ideals and goals of the organization. That is a common thing that thousands of business do, as you should know, no different than Coca Cola Bottling Company using the d/b/a” “Coke” or International Business Machine Corporation adopting “IBM” either as a name change or a “d/b/a”.
    Perhaps, Mr. Cragg, you should consider correcting your misstatements and set the record straight. What you have done is to slander a fine and outstanding political leader who has a very fine reputation as a tough, truth-seeking, right against wrong community leader. You owe him, his wife and our organization a big apology.
    D. Bernard Hoenig