Acorn Likely To File For Bankruptcy Soon
Community organizing group Acorn is reportedly on the verge of bankruptcy. As per some of its officials, who do not want to be named, it will declare itself bankrupt in the coming days.
Last six months have been quite traumatizing for Acorn, the liberal activist group, whose 15 state chapters have been disbanded. The biggest setback came in the form of its two largest chapters, California and New York, severing their ties with the national group.
Its California and New York chapters have reconstituted themselves under new names and have no relation whatsoever with Acorn. Many other groups are following suit. Therefore, the national group’s present bankrupt situation will have no bearing on them.
With the closure of the Maryland chapter, which faced flak in September when two conservative activists, who were posing as a prostitute and a pimp, clandestinely filmed some of the Acorn workers who were advising them how to hide their prostitution acts from the authorities and thus evade taxes.
Much to their amazement, their videos became public, thus exposing their activities. This exposure resulted in the private donors severing all ties with the group. Even the federal government soon distanced itself from Acorn. The other bigwigs that dropped the group from their different programs included the Census Bureau, the Internal Revenue Service. To add insult to injury, the Congress voted to discontinue all grants to Acorn.
Acorn or Association of Community Organizations for Reform was formed in 1970. famous for representing liberal causes, such as raising the minimum wage, stopping rapacious lending, voicing for registration of the poor as voters, and expanding affordable housing.
The group has also suffered from severe financial problems and fraud. It’s housing affiliate, Affordable Housing Centers of America, has been hit severely. Resultantly, it had to close down most of its offices, with its annual budget dropping from $24 million in last year to $6 million this year.
The Maryland video was the final blow to the group. In the words of Sonja Merchant-Jones, former cochairwoman of Acorn’s Maryland chapter, “That 20-minute video ruined 40 years of good work. But if the organization had confronted its own internal problems, it might not have been taken down so easily.”
Chief Executive Officer Bertha Lewis said in an e-mail message that the problems surrounding her organization were because of “a series of well-orchestrated, relentless, well-funded right-wing attacks,” which are reminiscent of the McCarthy era. She added, “Our effective work empowering African-American and low-income voters made us a target. And the videos were a manufactured, sensational story that led to a rush to judgment and an unconstitutional act by Congress.”
Amid the chaos, the group has sent two buses to Washington, carrying dozens of its members, to vie for the health care bill. The bankruptcy chapter has brought the group to ruins, which was once known as an advocate for the poor.
