Gifts to Former Chicago First Lady’s Charity Questioned by City Watchdog

A Chicago education charity led by former mayor Richard Daley’s wife received more than $900,000 in donations from developers who were required to make charitable gifts as part of a city financing programming, according to Crain’s Chicago Business and the Chicago Tribune.

A report issued Tuesday by Joseph Ferguson, Chicago’s inspector general, said the fine print of financing agreements negotiated during Mr. Daley’s tenure for projects in special taxing districts required grant recipients to donate to particular charities, including After School Matters, which was founded and chaired by Maggie Daley.

Of the 27 such deals signed from 2002 to 2009, 16 included contributions to After School Matters or an affiliate, accounting for about a quarter of $3.7-million in donations and making it by far the biggest charity recipient.

The report does not criticize the work done by After School Matters, which has been roundly praised by city officials, including current Mayor Rahm Emanuel, for its after-school and job-training programs. But it says the “frequent selection” of Ms. Daley’s group in the finance deals “creates the appearance of preferential treatment for an organization with close ties to the city.”

In a statement, After School Matters said any “impression” that developers had to support the group to get city aid was “flat-out false” and “an insult to the work” done by the charity and Ms. Daley.