ARTICLES

Numbers That Tell a Story

Planned Parenthood's IRS Records

By Bob McPhail

Planned Parenthood has built an abortion empire in California that takes in more than $100 million a year, about half of which comes from federal, state or local government. The empire stretches from Eureka in the north to the border with Mexico in the south, with a network of more than 100 clinics and at least 1200 paid employees. These figures are not estimates. They come from reports filed with the Internal Revenue Service by every Planned Parenthood affiliate in California. As nonprofit corporations, Planned Parenthood affiliates are required to file an annual "information return" with the IRS, and federal law requires that such returns -- called a Form 990 -- be open to public inspection. All figures in this story were based on information provided by Planned Parenthood affiliates on their 990 forms. The amounts are for the fiscal year ending June 30, 1999.

Between July 1, 1998 and June 30, 1999, the nine Planned Parenthood affiliates in California reported revenues totaling $103.9 million. Of that, $25.4 million came in the form of direct government grants, and another $25.7 million from 'fees for services' paid by the government. Nearly a third of the money was taken in by a single affiliate, the giant Planned Parenthood Mar Monte, headquarted in San Jose. Planned Parenthood Mar Monte is the result of a merger of affiliates in Santa Cruz County, the Sacramento Valley, Central California, the San Joaquin Valley and Santa Clara County. Planned Parenthood Mar Monte operates 33 clinics in 14 counties, employs 557 people and reported total revenues of $33.8 million -- $20.4 million of which came from government sources. According to information provided by Planned Parenthood Mar Monte to a charity-reporting agency called GuideStar, its clinics logged 9,815 abortions in 1998. (The only other affiliate that provided specific abortion numbers was Six Rivers Planned Parenthood -- Del Norte, Humboldt and Trinity counties, with clinics in Eureka, Hayfork and Weaverville. Six Rivers Planned Parenthood reported 489 abortions in 1997-98 at a cost of $129,474, and 480 abortions in 1998-99 at a cost of $131,234).

Second in order of income is Planned Parenthood of San Diego and Riverside Counties ($15.2 million), followed by: Planned Parenthood Golden Gate ($12.9 million), Planned Parenthood Los Angeles ($11.9 million), Planned Parenthood of Orange and San Bernardino Counties ($11.3 million), Planned Parenthood Shasta-Diablo ($9.9 million), Planned Parenthood of Santa Barbara, Ventura and San Luis Obispo Counties ($6 million), Six Rivers Planned Parenthood in Eureka ($1.5 million) and Planned Parenthood of Pasadena ($1.4 million). Eight of the affiliates invest money in stocks, bonds, money market funds and trusts. Altogether, these investments have a reported value of a little over $19.5 million. Planned Parenthood of San Diego and Riverside Counties has the most highly-valued portfolio, listed as worth nearly $6.6 million.

Coming in right behind San Diego is Planned Parenthood of Orange and San Bernardino Counties, with an investment portfolio valued at just under $6.4 million. The Los Angeles affiliate reported investments valued at $3.9 million, and Planned Parenthood of Pasadena listed the value of its investments at nearly $1.4 million. Investments by the remaining affiliates were valued under $1 million each. With income and investments of more than $123.2 million, Planned Parenthood affiliates can afford to pay well. The payroll for all affiliates was $46.2 million, not including benefits or pension plans. Twenty-one of their employees make more than $100,000 a year; two earn more than $200,000, and126 take home $50,000 or more per year. Diane Harrison, president and CEO of Planned Parenthood Golden Gate (Alameda, Marin, Mendocino, San Francisco,

San Mateo and Sonoma counties) earned $204,837, with a benefits package valued at $9,616, for a total income of $214,453. Katharine Sheehan, medical director for Planned Parenthood of San Diego and Riverside County, had a salary of $210,970, with $2,308 in benefits, for a total income of $213,278.

In addition to paid employees, most affiliates hire doctors on contract to perform abortions and provide other medical services. Four physicians made more than $100,000 in fiscal year 1998-99 under such Planned Parenthood contracts. A doctor working for the Mar Monte affiliate who was not identified earned $191,565. Dr. Jeffrey Waldman of Concord earned $170,878 working for Planned Parenthood Shasta-Diablo. And two physicians under contract with Planned Parenthood of San Diego and Riverside Counties made the "$100,000 Club" -- Dr. Donald Byrnes at $132,845 and Dr. Sean Tayebi at $104,469.

Other noteworthy contract expenses found in the 990s included $912,970 for "construction services" and $204,463 for "architect services" paid by Planned Parenthood Mar Monte. The San Diego/Riverside affiliate paid Keith Limberg $90,000 for fundraising services. Altogether, the nine Planned Parenthood affiliates in California reported spending $3.8 million on fundraising. Although they are nonprofit, tax-exempt corporations -- which means contributions to them are tax deductible -- most Planned Parenthood affiliates engage in political lobbying, an activity permitted by IRS regulations within generous financial limits. While not permitted to take sides in a partisan political battle between candidates, nonprofits can lobby elected officials and support or oppose ballot measures. California affiliates of Planned Parenthood reported spending $677,987 in 1998-99 on lobbying, but the actual figure is much higher. For example, while Planned Parenthood Mar Monte reported $85,920 under lobbying expenses, it spent another $682,410 for "public affairs." Mar Monte described its 'public affairs' activities as "monitor legislative and judicial activities regarding reproductive choice; educate and lobby legislators about the importance of affordable, accessible health care at local, state and national levels; inform, educate and mobilize the community about issues affecting access to reproductive health care and education."

Several of the affiliates operate sub-organizations for the purpose of political lobbying. Mar Monte has Santa Clara County Planned Parenthood Advocates, Orange County has the Community Action Fund and San Diego/Riverside has the Planned Parenthood Action Fund of San Diego & Riverside Counties. The relationship between the affiliate and its lobbying organization is a cozy one -- they share common board members and office space. The Planned Parenthood Federation of America calls such "action funds" the "political arm of Planned Parenthood." The national organization has its own 'action fund,' and coordinates activities among similar political groups among its 132 affiliates nationwide. In addition to their own lobbying activites, each of the nine affiliates has two board members on Planned Parenthood Affiliates of California, which in turn is an affiliate of the Planned Parenthood Federation of America. The California group's sole function is political lobbying, and, because it is organized under a slightly different IRS regulation, it is permitted a wider range of political activity. Headquarted in Sacramento, it reported revenues of $813,435 in calendar year 1999. Among its listed expenses was a $99,280 compensation package for CEO Katherine Kneer and a total payroll of $316,155. According to the California secretary of state, the California group employs three full-time lobbyists -- Kneer, Bonita F. Barnes and Kristin A. Wiese.

The Planned Parenthood state group is not shy about the extent to which it has flexed its muscle in Sacramento: "Since its beginning, PPAC has played a leading role in the fight against anti-abortion rights legislation, helping secure the defeat of every major bill except one" and "PPAC played a key role in getting state funding for family planning increased from $6.4 million in fiscal year 1973-74 to $61 million in fiscal year 1995-96."

In addition to its own lobbying, Planned Parenthood's state group trains others how to lobby ("Top Ten Tips for Lobbyists"), teaches people how to work with journalists ("Top 20 Strategies for a Good Media Interview") and trains its supporters in the fine art of writing to newspapers ("How to Write a Letter to the Editor"). The group publishes the "Y2000 Pro-ChoiceVoter's Guide," which rates candidates as "pro-choice," "mixed" or "anti-choice." The publication carries this disclaimer: "for voter education purposes only ... not intended as an endorsement of any candidate."

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