Taylor's ROC Foundation Posts -$24,000 Loss
Franklin Community News
Taylor's ROC Foundation Posts -$24,000 Loss
The ROC Foundation a non for profit 501(c)(3) under the leadership of Foundation Executive Director Steve Taylor, (also Milwaukee County Supervisor for the eastern half of Franklin and all of Oak Creek) posted a net operating loss of -24,664 for 2022 according to IRS Filings. The filing indicates Taylor earned $75,047 in salary and benefits. Franklin Community News (FCN) has been tracking the IRS reported filings for the last three years.
The ROC Foundation also posted a net loss of -$4,032 from its major fundraising events; Golf Outing, Jersey Auction, and an Unnamed event for the 2022. The golf tournament, its most widely publicized and promoted event raised $45,376 with direct expenses of $37,233 and rental facility costs of $8,144 leaving a net profit for the Golf Tournament of -$1.00. The Jersey Auction Grossed $59,057 and had expenses of $44,776 and listed other direct expenses of $14,281 with a net profit of $0.00. There was no revenue from these major fundraisers that contributed toward the stated mission of the ROC Foundation.
There were 33 registrants for the Golf Tournament according to their registration page.
Registration Details as listed on the Golf Tournament Web Page
Shotgun Start: 8:00am
Lunch will be served following the tournament at: Leinenkugel's Hop Yard
Milkmen Stadium 7035 S. Ballpark Drive Franklin, WI
Net Proceeds Benefit ROC Foundation and Milwaukee Milkmen Camps and Tickets for Disadvantaged Children.
There is no indication in the last three years of IRS returns that were reviewed, that the Foundation has incurred any expense for Milwaukee Milkmen Camps. It is possible that the Foundation working with ROC Ventures may have comped tickets that were not listed as an expense on the return for Disadvantaged Children.
The Golf Tournament on the ROC Foundation Web Page indicates for the 2023 Golf Tournament:
Please join us on August 18, 2023, for the 4th Annual ROC Foundation Golf Tournament presented by The Boldt Company! Shotgun start will begin at 8:00 AM and is located at Whitnall Golf Course in Franklin, WI. We also invite you to join us for lunch at the Leinenkugel’s Hop Yard in Franklin Field following golf.
This is a fantastic opportunity to hit the links and give back to the community, so don’t miss out! For further information, please contact Steve Taylor at stevet@rocventures.org
Major donors who contributed to the Golf Tournament were listed as:
According to past IRS filings the 2021 Golf Tournament made a net profit of $3,057 and in 2020 a net profit of $7,881.
The ROC Foundation Web Page identifies the mission of the Foundation as;
"The ROC Foundation's mission is to provide support and unique experiences for youth, high school, and young adults in sports, recreation, education, employment and wellness; through a robust network of like-minded businesses and supporters. The ROC Foundation thrives to create impactful outcomes in the communities where we live, work, and play."
The last IRS filing for 2022 indicates that the ROC Foundation contributed $38,006 to serve the mission of the organization. Part III of the submitted form 990-EZ is the "Statement of Program Accomplishments". Based on the organizations primary purpose the organization is asked to respond to the following question;
"Describe the organization’s program service accomplishments for each of its three largest program services, as measured by expenses. In a clear and concise manner, describe the services provided, the number of persons benefited, and other relevant information for each program title."
The response provided on the 990-EZ line 28 is:
"ROC FOUNDATION ALLOWS OTHER NON-PROFITS TO PARTICIPATE IN MILWAUKEE WAVE AND MILWAUKEE MILKMEN IN-GAME FUNDRAISING EVENTS FOR THEIR RESPECTIVE ORGANIZATIONS. THESE INCLUDE BUT ARE NOT LIMITED TO: GAMES, RAFFLES, PR, ETC." (Grants $38,000)
It appears based on the response provided on the IRS filing, that the ROC Foundation does not provide "Grants" in the literal meaning of "Grants". It appears that other Non-profits can "earn" money by selling Milkmen and Wave tickets and conducting In-Game Fundraisers such as 50/50 and other raffles. No "Grant" is awarded directly to a non-profit unless it is "earned" by selling tickets or an in game fundraising event according to their response.
The ROC Community Partnership Program is the program where local non-profits can "Earn" money by selling Milkmen or Wave Tickets, provide volunteers to work portable concessions, and "raise" money by running a ball toss game and 50/50 raffle.
Interesting to note on this years submission is "Professional Fees and Independent Contractors Expense" of $32,786. Last year the Foundation reported $40,000 for this same expense. The $38,006 in "Grants" which meets its stated mission, has no impact on its operating expense because "grants" are generated by "in-game raffles". The expense for "Contracted Services" is not associated with fundraising expenses and might appear excessive. One might question what these expenses are for and to who they are to and how the expenses support the mission of the Foundation.
The Foundation in 2022 posted its biggest net loss in the last three years of -$24,664, 2021 net loss of -$23,139, and 2020 a net loss of -$3,679. Other than run a golf tournament, a jersey auction, and allow groups to sell tickets and raise funds at "in-game fundraisers", it is unclear what is it that the Foundation actually does to have a yearly expense of $110,258 not including the expense of "grants" or "in game fundraisers".
The latest IRS filing lists Steve Taylor as the Executive Director, Joe Zimmerman, President, Jessica Kaye, Secretary, and Matt King, Treasurer.
Joe Zimmerman is listed as Senior Vice President of ROC Ventures on the ROC Ventures web page. Jessica Kaye is identified on her Linked In page as working as a Paralegal and Finance at Quarles and Brady and currently serving as the Co-Chair for the Franklin Educational Foundation and Southwood Glen Elementary School PTA Treasurer. Matt King is identified on his Linked In page as the Associate Director of the Hunger Task Force.
Analysis/Opinion
One would question, based on the level of activity reported in the IRS filings, what it is the Foundation Executive Directors does as it is related to the mission stated by the ROC Foundation? This, in addition to continually having a yearly operational deficit for the foundation (the last three years) and running a major golf tournament that spends more than it makes for the “foundation charity”. What could warrant a $75,000 position with so little of a return on the IRS tax filings? Why would the Foundation need to spend $32,000 this past year and $40,000 the year before on "Professional Fess and Independent Contractors"?
Franklin Community News and Franklin Residents Concerned with Sound at Ballpark Commons, have submitted a formal Tax-Exempt Organization Complaint (Form 13909) against ROC Foundation, Inc. The ROC Foundation is the charitable arm, a not for profit 501(c)(3) of ROC Ventures. We have received confirmation of the complaint.
The complaint to the IRS Exempt Organization Classification Unit alleges:
- Directors/Officers/Persons are using income/assets for personal gain
- Organization is engaged in commercial, for-profit business activity
- Organization is involved in political campaign
- Organization is engaged in excessive lobbying activity
Based on the over 3000 public records from the city of Franklin, text messages, and IRS filings for 2020 and 2021, the following allegations are identified to the IRS in the formal Tax-Exempt Organization Complaint:
- ROC Foundation activity related to its stated mission is very minimal.
- The ROC Foundation was set up as a cover business for Steve Taylor to lobby the City of Franklin and to avoid a conflict of interest with his position as Milwaukee County Supervisor. It also serves as the "Trojan Horse" charitable arm for Mike Zimmerman.
- Mr. Taylor was rewarded with the position and employment as Executive Director in December 2019 as a reward from Mike Zimmerman, CEO Rock Ventures, for shepherding thru the sale and rezoning of Crystal Ridge to Ballpark Commons as County Supervisor and when he served as Alderman and Common Council President in Franklin.
- The ROC Foundation is paying for Mr. Taylor’s salary and benefits while the majority of his time is focused on ROC Venture Operations and Government Relations, not the stated charitable mission statement. The majority of the emails to/from the city of Franklin from ROC Executive Director Steve Taylor are similar in nature to the sample linked here.
- There is a definite conflict of interest between Mr. Taylor and his work, representation, and influence as ROC Foundation, Inc. Executive Director; Steve Taylor, ROC Ventures; Steve Taylor, Milwaukee County Supervisor; Steve Taylor, Campaign Chair to elect John Nelson; Steve Taylor, Steve Taylor Consulting LLC; Steve Taylor, Ex-Officio Board member, Engage Franklin.
- Mr. Taylor was the Chair of the Campaign to elect John Nelson and was very heavily involved in running the campaign, very active on social media promoting candidate Nelson, and involved in the community in fundraising events, meetings and activities to elect candidate Nelson. There is a definite conflict of interest as Mr. Taylor is a part-time Milwaukee County Supervisor and a Full Time employee as ROC Foundation Executive Director and his efforts to place a “ROC friendly” mayor in Franklin.
- Based on the over 3000 public records obtained from the City of Franklin over the last three years identify that the majority of the correspondence to and from the City of Franklin had to do with ROC Ventures Operations and Government Relations and very minimal having to do with ROC Foundation, Inc. View the over 3000 Taylor emails to and from the city of Franklin linked here.
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