Kaiser and his foundation owned 61 percent of closely held Memjet in 2012, according to a legal action filed by the charity. Don P. Millican, president of Kaiser’s closely held energy concern, Kaiser-Francis Oil Co., helps manage the charity’s investment in Memjet, according to Dorwart.
“The interests of Mr. Kaiser in Memjet are fully subordinated to the foundation,” Dorwart said. “If that’s what somebody wants to call an ’alongside investment,’ that’s OK. It’s not what I would call an alongside investment.”
The charity is the second-largest shareholder of BOK Financial, a bank holding company with operations in 10 states holding $28 billion in assets. Kaiser is the largest shareholder, with 59 percent of the shares.
Other ties to BOK include an outstanding loan of more than $2.3 million the charity gave to a BOK subsidiary. The lone bonds held in the charity’s portfolio, according to its latest tax return, are $10.7 million issued by Tulsa County Industrial Authority. The industrial authority invested at least $70 million of its $85 million in cash with BOK Financial, according to the authority’s financial statement ending June 30, 2012.
‘Smell Test’
“There is a smell test -- the IRS really has to be satisfied that the charity is really engaged in charitable activities and these other businesses are really separate from the day-to-day activities of the charity,” said Sills of Holland & Knight.
Levit, the charity’s executive director, said the organization intends to move closer to disbursing 5 percent of its assets annually. He said the entity’s charitable interests are early childhood centers that serve more than 2,000 infants and toddlers in the state, and funding a medical school at the University of Oklahoma that will provide free tuition to students who pledge to practice in areas underserved by doctors.
“Our personal view is that we are spending the money very, very wisely. The money is in the public domain for perpetuity,” Dorwart said. “It never reverts back to the donor.”