Tom Monaghan shamelessly admits to artificially inflating figures to jump start his projects. So, it should come as little surprise that his for-profit south Florida real estate venture engages in the same tactic. The problem here, however, is that Monaghan is using a 501(c)(3) tax exempt non-profit charity - Ave Maria University, Inc. - to bolster and directly benefit the start-up of his for-profit interests as Ave Maria Development LLC.

Consider, for example, the real estate transactions involving Monaghan's Ave Maria Town from just the past two weeks:
+ Mon. Dec. 3 = 0 sold
+ Tue. Dec. 4 = 0 sold
+ Wed. Dec. 5 = 4 sold - 1 to AMU Inc. & 1 to AMU's Jane & Nick Healy
+ Thu. Dec. 6 = 0 sold
+ Fri. Dec. 7 = 3 sold - all 3 to AMU Inc.
+ Mon. Dec. 10 = 6 sold - 4 to AMU Inc.
+ Tue. Dec. 11 = 3 sold; - 2 to AMU Inc.
+ Wed. Dec. 12 = 0 sold
+ Thu. Dec. 13 = 0 sold
+ Fri. Dec. 14 = 0 sold

In summary, of the 16 total units sold over the past two weeks in Monaghan's Ave Maria Town, 10 units - or 62% - were bought by Tom Monaghan himself as Chancellor of Ave Maria University Inc. One of the 16 total units was bought by AMU's lawyer-President.

Consider just the Middlebrooke Townhomes area of Monaghan's development. This is the cheap part of Ave Maria Town where "Sales are limited to buyers meeting certain maximum income qualifications". Ave Maria University Inc. owns 23 total units at an estimated cost of over $12 million (click "More..." below for details). To date, only 2 units in total have been sold to "real" people.

Ignore the fact that billionaire Tom Monaghan likely doesn't meet the "maximum income qualifications" to buy at Middlebrooke and, instead, consider the flow of money. Tom Monaghan plunks his private money into Ave Maria Foundation (AMF) to call his investments a lay ministry and protect his enormous wealth from taxes. He then gives that money back to himself to control as Chancellor/Chairman under another tax-exempt charity, Ave Maria University Inc. What does AMU Inc. do with the many millions of its charity dollars? - It recruits donors to collect even more money and then, among other things, buys non-institutional property from Monaghan's own for-profit Ave Maria Development.

Ave Maria Foundation --> Ave Maria University Inc. --> Ave Maria Development LLC

But, it is worse than that. Middlebrooke receives its utilities from Ave Maria Utilities. Who is part owner in the utility company? - Tom Monaghan! Where can a buyer go for a loan to purchase a Tom Monaghan home? - Tom Monaghan's local Shamrock Bank, of course. [follow the links located on this page for a summary] Tom Monaghan is using tax-exempt money under the auspices of a "university" to directly benefit his for-profit real estate ventures.

But, it is even worse than that. In 2007, Tom Monaghan used coercive control as primary benefactor and Board Chairman of Ave Maria School of Law - a Michigan non-profit - to force the institution to move to Ave Maria Town in Florida... an act that directly and substantially benefits Monaghan's Ave Maria Development LLC.

To fully realize what an egregious abuse this is, consider the following excerpts from the IRS on 501(c)(3) requirements:

IRS - Exemption Requirements

To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual.

Organizations described in section 501(c)(3) are commonly referred to as charitable organizations. Organizations described in section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with Code section 170.

The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c)(3) organization's net earnings may inure to the benefit of any private shareholder or individual. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any organization managers agreeing to the transaction.

Has Tom Monaghan been paying any excise tax on all this self-directed benefit?

After AMU Inc. pumps millions into Chairman Monaghan's non-institutional properties, it has the audacity to tell prospective donors that they should "pray, fast, and give alms" to this "charity" because it "builds the Church" and is "good for my soul".

Given the apparent drive to self-stimulate Town development, Tom Monaghan's hand in real estate might be the hairiest in south Florida.