A little-known nonprofit boosts Indiana’s economic development agency – Indiana Capital Chronicle

Outside Donations to State Economic Development Agency’s Nonprofit Arm Remain Largely Unknown

Outside organizations donated nearly $3 million to a state economic development agency’s nonprofit arm over the last three years — but who the donors are, and how the agency spends their contributions are largely unknown under state rules that either don’t require or outright prohibit disclosure of that information.

The groups behind all but two of 16 transactions in records from 2020 through 2022, obtained by the Indiana Capital Chronicle, were permitted anonymity. And the Indiana Economic Development Foundation (IEDF) says that, because the funds are private donations, how they’re spent isn’t subject to public records rules.

The Indiana Economic Development Corp. and Foundation

The foundation and the Indiana Economic Development Corp. (IEDC) share the same staff and 12-member board of directors, as well as “the same mission,” spokeswoman Erin Sweitzer wrote in a statement to the Capital Chronicle.

That, she said, is “to advance Indiana’s economy and create more quality opportunities for Hoosiers and their families.”

Stodgy commerce department no more

Indiana had a traditional department of commerce until 2005, when then-Gov. Mitch Daniels, a Republican, signed into law legislation creating the Indiana Economic Development Corp.

Shortly after, leaders created the corresponding Indiana Economic Development Foundation, a 501(c)(3) nonprofit organization, according to Indiana Secretary of State records.

The corporation, considered a quasi-public agency, and its foundation operate as a public-private partnership.

Unknown donors

Ten donors gave the foundation about $2.7 million from 2020 through 2022, according to its records.

“Private donations to the Foundation allow more flexibility in how we use the funds and how quickly we’re able to access them, meaning we’re able to move quickly,” Sweitzer wrote. And she offered an example: “book[ing] a flight to the West Coast at a CEO’s request to close an economic development deal.”

Six organizations asked for anonymity, expressly allowed under state law — requiring the foundation to redact their names in public records. They each donated hundreds of thousands over the three years, records show.

Two didn’t request anonymity: Washington, D.C.-based think tank The Urban Institute donated $5,000 in 2021, and Indiana’s Battery Innovation Center, in Newberry, gave $12,000 in 2022.

Still, there are indications of which entities are likely behind some donations.

The corporation’s site, which includes a page for the foundation, features a thank-you note to foundation “sponsors.” They include the state’s “big five” investor-owned utilities: AES Indiana, CenterPoint Energy, Duke Energy, Indiana Michigan Power and the Northern Indiana Public Service Company.

Supplemental spending

The donations are a small amount compared to the corporation’s appropriated budget, but Sweitzer emphasized their supplemental nature.

“We’re able to ‘do more‘ and pursue more opportunities for Hoosiers, such as leading international economic development trips and market[ing] the state even more aggressively to new prospects,” Sweitzer wrote.

She said the money allowed the corporation to work “more quickly,” “more boldly” and “more strategically” in pursuing opportunities, marketing the state and engaging abroad.

The foundation’s expenditures aren’t public records, according to Lang, the counsel. He said that’s because the funds are private, not taxpayer dollars.

But Sweitzer highlighted spending on economic development-focused international trips as a “key strategy” to “mitigate the use of taxpayer dollars.”

“The results are telling,” she wrote: Indiana hosts more than 1,050 foreign-owned businesses, and the corporation got commitments in 2022 from 32 others to locate or expand within the state.

She said those foreign deals would create more than 6,400 jobs — more than a quarter of Indiana’s total new job commitments last year — and added up to $7.25 billion in planed investment.

SDGs, Targets, and Indicators Identified in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 8: Decent Work and Economic Growth

The article discusses the Indiana Economic Development Foundation (IEDF) and its role in advancing Indiana’s economy and creating more quality opportunities for Hoosiers and their families. This aligns with SDG 8, which aims to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

SDG 16: Peace, Justice, and Strong Institutions

The article raises concerns about transparency and accountability in the operations of the Indiana Economic Development Foundation (IEDF) and its nonprofit arm. This relates to SDG 16, which focuses on promoting peaceful and inclusive societies, providing access to justice for all, and building effective, accountable, and inclusive institutions at all levels.

SDG 17: Partnerships for the Goals

The article mentions that the Indiana Economic Development Foundation (IEDF) receives private donations in addition to funding appropriated by the Indiana General Assembly. This highlights the importance of partnerships and mobilizing additional financial resources for achieving sustainable development, as emphasized in SDG 17.

2. What specific targets under those SDGs can be identified based on the article’s content?

Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries

The article does not provide specific information or data related to this target.

Target 16.6: Develop effective, accountable, and transparent institutions at all levels

The article highlights concerns about the lack of transparency and accountability in the operations of the Indiana Economic Development Foundation (IEDF) and its nonprofit arm. This indicates a need to develop effective, accountable, and transparent institutions at the state level, aligning with Target 16.6.

Target 17.3: Mobilize additional financial resources for developing countries from multiple sources

The article mentions that the Indiana Economic Development Foundation (IEDF) receives private donations in addition to funding appropriated by the Indiana General Assembly. This demonstrates the mobilization of additional financial resources from multiple sources, contributing to Target 17.3.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article does not provide specific indicators that can be used to measure progress towards the identified targets. However, it highlights the lack of transparency and accountability in the operations of the Indiana Economic Development Foundation (IEDF), which can be considered as an indicator of progress or lack thereof in achieving Target 16.6.

4. Table: SDGs, Targets, and Indicators

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Source: indianacapitalchronicle.com

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