Kirk's Chronicles (Part 2): The Non-Nonprofit

Note from Aesop: I realize these investigative deep-dives can be rather lengthy and complex, so I'm taking a page from The Daily Mail's playbook and offering this bullet-point summary up front:

• Kirk Menendez is president of the War Memorial Youth Center Association (WMYCA), an 81-year-old organization that lost its 501(c)(3) status in 2020 after failing to file required IRS returns

• The organization's last known tax filing showed assets of $113,622 in 2016—mostly in an investment account

• After the death of longtime treasurer Randall Berg and departure of CPA Alain Yanes, Kirk installed his wife and 21-year-old daughter as the organization's financial officers

• Despite losing nonprofit status through apparent neglect rather than strategic choice, Kirk has provided no explanation to the community about this significant change

• The timing coincides with Kirk's documented personal financial troubles, including multiple mortgages and a lawsuit from a debt collection agency

• The lack of transparency around both the status change and the assets raises serious questions about Kirk's stewardship of a longstanding institution

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In part one's closing remarks, I teased what I had dubbed "The Wandering Years"—that murky interregnum between Kirk's inglorious exit from the City of Miami in 2016 and his election to the Coral Gables commission in 2021. Originally, I had intended to scan these years from a relatively high altitude, assuming they would yield little more than a variation on a familiar theme, more of the three Kirkian 'I's:" indolence, ineptitude, and what my late grandfather used to call "industrial fatigue"—his tongue-in-cheek euphemism for chronic unemployment.

But as it turns out, destructive patterns don't merely persist when unbounded, they amplify. Rather than yielding more of the same, Kirk’s five-year employment sabbatical (which is only five years if you consider holding public office “employment”) may have given rise to something potentially much worse: a volatile fusion of desperation and opportunity, where self-destructive tendencies merged with an unprecedented freedom to act upon them.

In retrospect, this should have been obvious. I should have anticipated how Kirk's pathologies might have metastasized once freed from the constraints of a career in government. After all, the public sector’s saving grace is that the very same bureaucratic inertia that renders it slow and ineffective tends to limit the havoc any single incompetent actor can wreak. In other words, Kirk's career, such as it was, acted as its own containment system—a rubber room of rules and regulations, a straitjacket woven from red tape.

In this post, we will take a closer look at one of Kirk’s much-touted nonprofits: The Coral Gables War Memorial Youth Center Association (let’s call it the WMYCA for short), of which Kirk is the President. It won’t be a simple task, as with anything Kirk touches, this once commendable organization has come in recent years to eschew any semblance of order and transparency.

Unfortunately, this topic doesn’t quite inspire the kind of sardonic pleasure I typically derive from lampooning KFC's garden-variety antics. What follows is a somewhat convoluted examination that offers precious little opportunity for wit or whimsy, and what emerges is a troubling portrait that raises far more questions than it answers—questions that extend well beyond Kirk's demonstrable incompetence and into more unsettling territory. After all, there's a profound difference between being unqualified to lead an organization and being unworthy of the public's trust. As we'll see, Kirk may well be both.

“Your Search Did Not Return Any Results”

Let's clear something up off the bat: the WMYCA is not the same entity as the Coral Gables War Memorial and Youth Center, the city-owned facility off University Drive. While seemingly affiliated with the City, the WMYCA is a private organization whose corporate filings on Sunbiz date back to 1996, though records indicate it was originally incorporated in 1944—hence the "War Memorial" part. Past presidents and directors include Charles Crispin, Robert Knight, and Randall Berg—all respected members of the community in their day.

In other words, the WMYCA isn’t Kirk’s nonprofit, contrary to what some might assume in light of hows it’s been run. Rather, Kirk is the latest in a long line of community leaders entrusted with preserving the WMYCA’s eight-decade-old legacy.

According to Sunbiz, the WMYCA is registered as a "Florida Not for Profit Corporation" and maintains an "Active" status with all state corporate filings current. The most recent annual report, dated March 18, 2024, lists Kirk as both president/director and registered agent. The WMYCA's principal address is listed as the actual Youth Center, while its mailing address is, naturally, Kirk's home:

But here's where things get concerning. The WMYCA has been assigned EIN number 59-0668477 by the IRS—a natural requirement, as corporations must obtain some form of 501(c) designation, usually 501(c)(3), to operate as a charitable organization. The WMYCA held this designation for decades, as far back as records stretch. All active 501(c)(3)s are listed in the IRS's Publication 78, which is searchable through the agency's "Tax Exempt Organization Search" portal. Here's what you find when you search Pub. 78 for the WMYCA, either by name or EIN number:

Odd, isn't it? Especially given that we know the WMYCA has been a registered 501(c)(3) since at least 1996 and up to 2020:

Ok, but maybe this is just a case of the IRS being the IRS and failing to offer a functioning search portal or an up-to-date version of Pub. 78 online? Let’s see what happens when we search for an organization that everyone knows is an active 501(c)(3) in good standing, The Coral Gables Community Foundation:

There it is. So we know it’s not an issue with the IRS’s website. But then why doesn’t the WMYCA show up as a registered 501(c)(3)? Perhaps instead of searching Pub. 78, we should search all IRS databases to see if we get a hit:

Now we’re talking. But wait, what exactly are those two databases? I mean, “copies of returns” is straightforward enough, but what’s this “auto-revocation list”? Let’s find out:

Ah, I see. The auto-revocation list contains organizations whose 501(c)(3) status was revoked for failing to file their 990-series tax returns for three consecutive years. According to the IRS, the WMYCA had its 501(c)(3) status revoked in May 2020—five years ago. But the fine print notes that appearing on the list doesn't necessarily mean an organization's status is currently revoked, as reinstatement is possible. That's why I downloaded the actual bulk file, updated just last week, and sure enough, the WMYCA remains on the auto-revocation list—which explains that blank "exemption reinstatement date" above:

The evidence, therefore, points to an uncomfortable conclusion: the WMYCA has not been an approved 501(c)(3) since 2020. Did the WMYCA obtain some other tax-exempt designation? Perhaps, but the organization doesn't appear on the IRS's master exempt list, and none of the other 501(c) designations would logically apply. Has it been filing a different version of the 990 return, such as the 990-N or 990-EZ? Maybe, but then again, those are supposed to show up on the IRS website and they clearly don’t.

So what happens when an organization loses its 501(c)(3) status and doesn’t replace it with an alternative tax-exempt designation? It defaults to a for-profit corporation, meaning the WMYCA might have been required to file 1120 tax returns or the equivalent after 2020. Unfortunately, 1120s aren't publicly available, so we can't verify whether the WMYCA has properly reported to the IRS these past few years. But let's be realistic: the notion that Kirk would allow his organization to lose its exempt status through negligence only to suddenly become diligent about corporate tax filings strains credulity. More importantly, allowing an 81-year-old organization to devolve into a de facto for-profit corporation through sheer noncompliance represents an unforgivable affront to all honorable stewards who came before.

But while we’re at it, let’s go ahead and look at the last 990 tax return filed by the WMYCA, which was for FY 2016:

The 2016 return, filed in November 2017 via extension, align perfectly with the 2020 auto-revocation timeline. But it’s the assets that truly catch the eye: $113,622. While this sum might not rival the Community Foundation's war chest, it's hardly pocket change, especially considering most of it reportedly sat in an investment account. Assuming those funds remained untouched, they would have grown substantially over the past decade. Indeed, the WMYCA possessed real money, which begs what we might call the $113,000 question: where is it now?

Unfortunately, we can't pose this question to Mr. Berg, the WMYCA's 2016 treasurer, who, if I’m recalling the correct Randall Berg, succumbed to ALS in 2019. In fairness, his declining health may well have contributed to the organization’s post-2016 compliance issues—or at least the very earliest instances of those issues. Nevertheless, Kirk, as president during these years, bears ultimate responsibility for this institutional neglect.

One might think to consult Alain Yanes, the CPA who succeeded Berg as WMYCA treasurer in 2019. Surely he could shed some light on what became of those assets post-2016 and explain the organization's slide into non-exempt status. As Kirk's former neighbor and one of many property owners who joined Kirk in that lucrative mass sale of their entire residential block to a developer, Yanes might even offer insights into Kirk's leadership style. The two are, I'm told, practically family:

Speaking of family, guess who Kirk installed as treasurer after Yanes' departure in 2023? Might it have been someone who isn’t thick as thieves with Kirk? Perhaps an independent CPA, preferably one who didn’t recently share a healthy and ethically questionable windfall with Kirk?

LOL…no. Kirk installed his wife. And assistant treasurer? His then 21-year-old daughter. Because nothing says everything’s above-board quite like ensuring the only people with explicit authority over the organization's finances share your last name or bedroom.

Let's take stock of what we know: an eight-decade-old charitable organization loses its 501(c)(3) designation on Kirk's watch, its six-figure investment account vanishes into an accountability black hole, and its financial oversight gets handed off to immediate family members like some kind of nepotistic hot potato. Any one of these circumstances would raise eyebrows. Together, they paint a picture of an organization that has devolved from a respected community institution into what amounts to a family business—minus the business part, of course, since we have no idea what, if anything, the WMYCA actually does anymore. From virtually any angle—ethical conduct, fiduciary responsibility, basic organizational competence—Kirk's stewardship of this once-legitimate institution has been nothing short of reprehensible.

It’s Fun to Pilfer from the WMYCA 🎶

The best-case scenario, as I see it, would be that Kirk deliberately chose to surrender the WMYCA's 501(c)(3) status as part of some organizational pivot or mission shift. Yet even this most charitable interpretation raises troubling questions. Why execute such a significant change through passive non-compliance rather than active choice? Why not communicate this shift to the community? Why follow this already questionable path by installing immediate family members as financial officers? Even in this best-case scenario, Kirk's approach seems calculated to maximize opacity while minimizing accountability. None of it makes any sense.

A less charitable scenario would be that the WMYCA simply fell victim to Kirk's trademark incompetence. As Mr. Berg's health declined, his duties as treasurer suffered, and Kirk, true to form, failed to provide the necessary oversight required of him as president. Tax filings lapsed, 501(c)(3) status evaporated, and Kirk, perpetually asleep at the wheel, remained blissfully unaware until the IRS's revocation notice arrived. Then, being both ignorant and ethically obtuse, he continued treating the WMYCA as his personal fiefdom, transforming a respected 81-year-old organization into a bargain-bin version of the Clinton Foundation.

The worst-case scenario is considerably more troubling: that the reporting failures and subsequent inaction weren't accidents at all, but rather deliberate maneuvers. Consider the timing: Mr. Berg's illness conveniently removed the last director with deep institutional ties and knowledge. The WMYCA became Kirk's fiefdom, free to install friends and family in key positions and take whatever assets remained off the radar. Remember, Kirk's termination from the City of Miami in 2016, and thus the loss of his main source of income, coincides eerily with the WMYCA's sudden lapses in IRS reporting. And speaking of financial troubles, here's Kirk-booster Elaine De Valle reporting on Kirk's mounting money woes back at a time when KFC hadn’t yet added her to their Venmo account:

On the other hand, we have a soccer dad and real estate agent who fought hard for the controversial upzoning of the Crafts Section where he owns not two, but three houses. Well, two and a quarter. Menendez told Ladra he only owns 26% of MBP Malaga Holdings LLC, which is registered at his home address and owns the house next door.

Now we find out that Kirk Menendez has two of those homes mortgaged to the max. In fact, he has taken out three mortgages over the last 18 months on both homes totalling $900,000.

No wonder he wants to upzone and triple the value of his properties. He owes a lot of money.

…There is also a lawsuit pending, filed in February of this year, for anywhere between $35,000 and $50,000 by Portfolio Recovery Associates, which purchases non performing loans and is one of the largest debt buyers in the U.S. It’s probably credit card debt.

That’s something he did not disclose under liabilities in his financial disclosure form, because — according to City Clerk Billy Urquia — it’s for financial information through Dec. 31, 2020. The lawsuit was filed Feb. 10 of this year. The financial disclosure was filed on Feb. 24.

Menendez said there’s no reason to think he can’t manage the city’s budget.

Yeah, I'd have to disagree with that last part. And not just because a man who takes out three mortgages in 18 months while dodging debt collectors probably isn't the best steward of public funds. The more pressing concern is how Kirk's apparent financial desperation might have influenced his handling of the WMYCA.

Consider all we still don't know: What happened to that six-figure investment account? Why install a neighbor, close friend, and quasi-business partner as your new financial officer? Why make matters worse by installing family members immediately after his departure? Why make no effort to reinstate the WMYCA's tax-exempt status, a process that, while burdensome, would have legitimized his continued leadership of the organization?

On that last part, there’s also the question of how the WMYCA has been publicly portrayed since 2020. We all know how Kirk loves to tout his leadership of the organization, he even makes mention of it in his bio on the city’s website:

Kirk has to be careful here, falsely representing an entity as a tax-exempt charitable organization is potentially a third-degree felony under F.S. 496.415. Has Kirk led the public to believe the WMYCA is still a 501(c)(3)? Has he solicited any donations since 2020? As usual with Kirk, the questions abound.

Perhaps there are perfectly innocent explanations for all this, although they’re hard to imagine. Indeed, the evidence hardly suggests an innocent explanation, rather it points to a man who either catastrophically bungled his fiduciary duties or deliberately transformed a respectable community institution into his personal slush fund. Either way, these aren't the actions of someone who should be trusted with public office, much less elevated to mayor.

In fact, I’d go as far as to say that in light of these deeply concerning revelations about the WMYCA's loss of 501(c)(3) status, the disappearance of its substantial assets, and the utter lack of transparency around these developments, Kirk Menendez owes the community an immediate and thorough accounting.

As a candidate asking voters to entrust him with the mayor's office, the very least Kirk can do is make public the WMYCA's full financial records and any tax filings made since 2016. If the organization somehow became exempt from its filing requirements, Kirk should waste no time in producing documented proof of that exemption from the IRS.

In the final analysis, however, the troubling transformation of the WMYCA is about much more than paperwork or tax status. It's about trust. When a respected community institution founded during World War II suddenly stops reporting its finances in a logical and transparent way, right as its president faces documented financial difficulties, the public deserves answers. Instead, we got opacity. Instead of a clear explanation for the organizational changes, we got silence. Instead of independent oversight, we got the Menendez Family Foundation.

Then again, Kirk's handling of the WMYCA is exactly what you'd expect from someone with his track record. This is the same Kirk, after all, who ran MSEA into such administrative chaos it had to be abolished; the same Kirk who gleefully dumps tens of thousands in taxpayer dollars into his supporters' coffers without a modicum of scrutiny (hello, Actor's Playhouse); the same Kirk who doubled his own salary on the sly and now raids city reserves the way KFC raids an all-you-can-eat LasVegas buffet; and the same Kirk who refuses to lower taxes for residents while attempting to shovel massive COLAs into the pockets of his union allies.

Indeed, the WMYCA saga isn't an aberration or an isolated incident, it's merely Kirk's standard operating procedure writ small. If anything, it's a preview of coming attractions should he ever get his hands on the mayor's gavel.

Thank God he probably won’t.