Carmel committee begins audit of city-affiliated nonprofits, orders documents and timeline

The newly formed Affiliate Review Committee met for the first time Monday and voted to make City Councilor Ryan Locke chair as it launched a review of the governance, tax status and financial oversight of four nonprofit entities affiliated with the City of Carmel.

The committee — convened by Mayor Sue Finkham and composed of council members and mayoral appointees — directed the mayor’s office to request a standardized document package from each affiliate and set a March 1 deadline for the materials. The materials the committee said it will review include articles of incorporation, bylaws, the organizations’ tax-exemption applications and IRS determination letters; the mayor’s office said cloud access to the packet should be available to committee members in about a week.

The review responds to questions about the legal relationship and financial transparency between the city and affiliates such as Carmel Christkindlmarkt (CCI), Promote Carmel Inc., Carmel Midtown Community Development Corporation and Carmel City Center Community Development Corporation. Marilee Springer, a nonprofit tax lawyer retained to brief the committee, told members that CCI is organized as a Type I supporting organization under federal tax rules and therefore is controlled by the city and must operate “exclusively for the benefit of, to perform the…