Collapsed Organization Has Malibu Ties

More than 200 nonprofits say they have lost money that was handled by a recently defunct organization called the International Humanities Center, according to an article that appeared last week in the Los Angeles Times. The list of nonprofits includes the Malibu REALTORS Charitable Fund and the Wetlands Defense Fund, which is one of three organizations that has sued the state over the Malibu Lagoon project.

The IHC last month closed its offices in Pacific Palisades, took down its website and told clients through email that it had ceased operation, according to the Times. The newspaper reported that the IHC owed money to the IRS and had other financial issues. The state attorney general's office is looking into the matter.

Some organizations could be devastated by the IHC collapse and are unable to pay their staffs and bills, according to the Times. This does not appear to be the case for the WDF and the Realtors fund, which have lost $2,000 and $5,000, respectively, their directors say.

Marcia Hanscom, director of the WDF, wrote in a press release that the organization had begun the process of severing ties with the IHC last year.

"We have our own incorporated status now, and with the exception of approximately $2,000 that we thought had been paid to a vendor, and we have subsequently learned was not paid, all of our funds graciously donated by our supporters have been accounted for," Hanscom wrote. "That lost funding is being made up for by another one of our generous donors."

Two other organizations run by Hanscom—the Coastal Law Enforcement Action Network (another plaintiff in the Malibu Lagoon lawsuit) and the Ballona Institute—were previously "under the sponsorship" of the IHC, Hanscom wrote in an email to Malibu Patch. Those two organizations had undergone the same transition as the WDF did, and there were "no money losses there that we know of," Hanscom wrote.

Susan Manners, executive director of the Malibu Association of REALTORS, wrote in a press release, "The [Realtors] fund had approximately $5,000 on deposit with the IH Center, raised from a recent fundraiser and raffle, no member dues money was in this fund."

The charitable fund is a committee of the Malibu Association of REALTORS. It was created to "assist with the urgent needs of the community, in case of fire, illness or other dire situation," Manners wrote.

Regarding the IHC situation, she wrote:

A letter was recently received from some of the other programs housed at the IH Center advising us IHC was no longer able to meet its financial obligations and that program money may no longer be accessible, and may even have been misappropriated. A letter from the IH Center Executive Director Steve Sugarman was received shortly after stating that there were indeed difficulties beyond his control; they would be closing their doors.

At the time MRCF joined the IH Center they had filed all the appropriate IRS forms and had many active, successful local groups under their umbrella organization. They acted in a professional manner performed all the functions expected, so their demise came as a total surprise. MRCF has submitted a request for the balance of the funds on deposit with the IH Center but that request has been unsuccessful to date. Attempts to contact Executive Director Steve Sugarman have also gone unanswered.

The Malibu Association of REALTORS and advisors on the Malibu REALTORS Charitable Fund were extremely disappointed to learn of the recent developments at the IH Center and will file complaints with both the IRS and the State of California in an attempt to recover any funds possible. 

The MRCF plans to form its own 501c3 and continue in its mission to assist with the most urgent needs of the communities they serve.