The Memphis-based nonprofit accused of mishandling money donated prior to its abrupt decision to permanently close earlier this month previously received more than $260,000 in Paycheck Protection Program (PPP) loans during the COVID-19 pandemic, according to the federal government’s Pandemic Oversight portal.
Tennessee Attorney General Jonathan Skrmetti on Monday announced his office filed a lawsuit in Davidson County to seek the judicial dissolution of the National Foundation for Transplants (NFT), a Memphis-based nonprofit that abruptly announced it would end its operations earlier this month, reportedly leaving some patients unable to access thousands of dollars donated to the organization to defray the cost of their medical expenses.
“Our investigation revealed troubling discrepancies between how NFT represented its services to vulnerable transplant patients and how it actually managed donations,” Skrmetti stated on Monday. “When a nonprofit organization solicits charitable contributions by telling donors their money will benefit specific transplant patients, those representations must be truthful and accurate.”
Skrmetti’s office explained its legal action accuses NFT falsely told patients and donors that money donated “in honor of” or “on behalf of” a specific patient would be assigned to that patient, even generating reports that resembled a bank account so that patients could see their purported balance, when in actuality NFT held the donations in a general fund that was used for various expenses.
He is asking a judge to formally dissolve the nonprofit, which would allow the court to oversee the dispersal of NFT’s remaining assets.
The press release explained that Skrmetti’s office received 47 complaints related to NFT’s decision to close its doors, while the Tennessee Secretary of State’s office received at least one additional complaint through its Division of Business and Charitable Organizations.
“The Attorney General’s Office is a great partner in our efforts to protect Tennesseans and their charitable dollars,” stated Secretary of State Tre Hargett. ““This important step announced today warns any individual or entity attempting to take advantage of the generosity of donors that their actions will not be tolerated in Tennessee.”
While NFT’s former website now redirects to another organization, making some information about the nonprofit inaccessible, the Pandemic Oversight portal reveals two loans were issued to organizations with the name National Foundation for Transplants Inc., with the first loan of $153,500 approved in April 2020.
NFT said in its PPP applications that it would use the money to maintain 15 different positions, and the loan was ultimately forgiven in the amount of $154,266, indicating the employment level was maintained.
The second loan, issued by a different bank to an identically named organization located in a different part of Memphis on January 29, 2021, totaled $110,858.
For this loan, the organization claimed to employ just 10 people, and it was similarly forgiven in the amount of $111,537.
Republicans have long questioned the destination of PPP loans, as well as their forgiveness, after it was revealed under former President Joe Biden that Planned Parenthood received money under the program.
Eyebrows were additionally raised in 2022, when it was revealed that companies linked to major sports and entertainment figures including Tom Brady and Khloe Kardashian, as well as former House Speaker Nancy Pelosi (D-CA-11), reportedly received PPP loans which were later forgiven by the federal government.
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Tom Pappert is the lead reporter for The Tennessee Star, and also reports for The Pennsylvania Daily Star and The Arizona Sun Times. Follow Tom on X/Twitter. Email tips to [email protected].
