Jabs, J

An IRS document obtained by the Center for Public Integrity indicates one of its early donors was a nonprofit 501(c)(4) called Coloradans for Economic Growth, which spent millions of dollars from undisclosed sources to support a failed 2008 ballot initiative that would have made Colorado a “right-to-work” state.

Among the initiative’s supporters was Jacob Jabs, president and CEO of American Furniture Warehouse. A 2008 letter to the IRS signed by former ATP employee Athena Dalton said Jabs was the “primary donor” and had promised to give $300,000 to ATP, but only if the IRS expedited its approval of ATP’s application for tax-exempt status.

Jabs has denied knowing anything about the group or giving it any money.

The appeal apparently worked. Three days later, the IRS approved the application.

ATP’s 2008 donors list shows a $300,000 contribution from Coloradans for Economic Growth, but makes no mention of any donation from Jabs.

Dalton did not return numerous calls. According to a report by ProPublica, a nonprofit investigative news organization, Jabs said he contacted Dalton earlier this October and she told him that ATP officials had instructed her to use Jabs’ name in the letter.

One of those officials was Christian LeFer, who was also director of Montana Citizens for Right to Work at the time. LeFer declined to comment on whether he told Dalton to use Jabs’ name or not.

In a previous interview with the Center, LeFer said that “ATP and RTW [Right to Work] have nothing to do with each other,” and that “I know of no shared funds” between the groups.

Donald Ferguson, ATP’s spokesman, did not respond to a request for comment.

Coloradans for Economic Growth was a major force behind the state’s anti-union ballot initiative, shelling out almost $3.4 million in 2008 to groups that campaigned for the law’s passage.

Such laws, which exist in 23 states, allow employees at union shops to forgo paying union dues.

Jabs appeared in TV commercials as an unofficial spokesman for the cause, and gave at least $20,000 to groups mobilizing support for the ballot issue.

Jabs did not return calls for comment.

At a 2008, Jabs announced he would be backing the anti-union referendum to “frankly hurt the pocketbooks of the unions so they don’t have the millions and millions and millions and millions and millions of dollars to spend.”

ATP’s other early funders listed on the IRS document include New Leadership Colorado. The nonprofit also contributed to anti-union groups in 2008, and gave $45,000 to ATP.

Coloradans for Economic Growth and New Leadership Colorado are both listed as “delinquent” for failing to file annual reports with the Colorado secretary of state and have faded from public view. They were both registered in 2008 at Hackstaff Law of Denver, Colo. The law firm’s address is the same one listed on ATP’s corporate registration.

Hackstaff is the former firm of Colorado Secretary of State ScottGessler, who represented ATP in a lawsuit challenging campaign finance laws in the Colorado city of Longmont in 2009 before he won public office.

A third nonprofit, Virginia-based Conservative Action League gave $40,000 to ATP, and has given smaller grants to Montana’s right-to-work group, which until recently was headed by ATP’s LeFer.