Video Depicts NPR Fund Raiser Offering Advice About Avoiding Oversight

In a new undercover video released today, an NPR fund raiser can be heard advising a fictitious Muslim group on how to make an anonymous donation that would escape government oversight.

In recorded phone conversations, Betsy Liley, NPR’s director of institutional giving, discussed the mechanics of making a secret gift, in response to a question from somebody who turned out to be posing as a donor.

The video was produced by Project Veritas, an organization run by the conservative activist James O’Keefe that on Tuesday released another highly damaging video involving top NPR fund raisers.

In the video released today, the questioner asked about government oversight of NPR as a tax-exempt organization that received federal money.

In response to a question about whether NPR could shield the group from an audit, she said: “I think that is the case, especially if you were anonymous, and I can inquire about that.”

Ms. Liley also said NPR’s legal counsel would draw up a gift agreement setting out the terms of the donation, which she understood would be for unrestricted use. NPR earlier said it had “repeatedly refused” to accept the group’s gift.

NPR released e-mails showing that NPR executives had sought proof that the potential donor was a charity under Section 501(c)(3) of the tax code and had requested its Form 990 informational tax returns.

In one e-mail, Vivan Schiller, who resigned as NPR’s chief executive after the first video was released, told colleagues that a representative of the group was insisting on delivering a check. “I said that’s very generous,” she wrote, “but we really need to sort out these issues first.” She said she had told him the donation would not have to be reported publicly, but would have to be reported to the IRS.

NPR Criticizes Fund Raiser

This is the second video released this week in which Ms. Liley appears. In the one released Tuesday, Ms. Liley and another NPR fund raiser, Ronald Schiller, could be seen discussing a potential $5-million donation over lunch with people posing as representatives of a fictitious group they called the Muslim Education Action Center.

Both Ronald Schiller and Vivian Schiller (no relation) resigned after the release of that video, which showed Mr. Schiller criticizing the Tea Party and Republicans and saying NPR would be better off in the long run without federal money.

NPR, which has placed Ms. Liley on administrative leave, issued a statement disavowing the fund raiser’s remarks.

“The statement made by Betsy Liley in the audiotapes released today regarding the possibility of making an anonymous gift that would remain invisible to tax authorities is factually inaccurate and not reflective of NPR’s gift practices,” it said. “NPR complies with all financial, tax, and disclosure regulations.”