From: Jane Scaccetti

To: TACRE

Cc: Vicki W. Kramer (vickiwkramer@comcast.net); Kathleen Allison; Joanne Epps (joanne.epps@temple.edu)

Subject: WNLI and the IRS Initiative

Date: Monday, August 14, 2023 12:50:12 PM

Attachments: Open Letter to IRS June 2023.pdf

** Caution: External email. Pay attention to suspicious links and attachments. Send

suspicious email to suspect@treasury.gov **

Dear Members of the Treasury Advisory Committee on Racial Equity:

Every year, large non-profits such as health systems and colleges and universities are afforded

billions in IRS tax-exemption benefits by the Treasury Department without accountability for

the disclosure of the demographic makeup of their boards. It is estimated that hospitals alone

received more than $28 billion in such benefits in 2020. I write to bring to your attention our

efforts to address this lack of accountability as it includes the Treasury.

I am a member of the Women’s Nonprofit Leadership Initiative. Our focus is increasing gender

and racial diversity on the boards of the largest nonprofits – healthcare and higher education

institutions. Through research and strategy development, our planning committee determined

that the IRS is best positioned to require demographic board disclosure since it already asks

for other information about nonprofit boards and governance practices and makes that

information public.

On June 15, the attached “open letter to the IRS” with signatures of 150 leaders who comprise

the Coalition for Nonprofit Board Diversity Disclosure was sent to the IRS and members of the

Treasury in their role of oversight of the IRS. The letter proposes one simple action: add a

single question to the annual Form 990 tax return for large public charities, requiring the

disclosure of the demographic makeup of their boards.

The letter further supports including self-described LGBTQ+ and disability disclosure. It

clarifies that requiring institutions to be transparent would not require them to change their

boards; however, asking the question conveys a message that the Treasury Department and

its IRS Bureau stand behind diversity as a good governance practice. We believe that

transparency on Form 990 will help advance diversity, equity, inclusion, as well as

accountability to stakeholders by having diverse leaders at the table asking informed

questions and making decisions.

Our ongoing outreach efforts across the country continue to gather significant support. As of

today, more than 200 leaders have signed the letter. Signatories include the Association of

Governing Boards of Universities and Colleges (AGB), Candid (formerly GuideStar), the

National Association of Diversity Officers in Higher Education (NADOHE) and Alliance for Board

Diversity(ABD), along with current presidents and deans of universities and medical

institutions, including Temple University and Temple’s School of Medicine, Drexel University,

and Swarthmore College. It also includes law professors, emeritus deans and presidents of

colleges and universities and medical institutions from all over the United States and such

foundations as the Philadelphia Foundation and the Boston Foundation. The list of signers is

updated weekly here.
A significant body of research stands behind our efforts. We welcome the opportunity to meet

with you to share the research and discuss the importance of our work in the context of the

crucial role the IRS can play in creating greater accountability for non-profits receiving

significant tax-exemption benefits.

Sincerely,

Jane

Jane Scaccetti, CPA, MT

Ambassador

Jane.scaccetti@armanino.com

ArmaninoLLP

1600 Market Street, Suite 3300 | Philadelphia, PA 19103

215.803.9910 mobile

LinkedIn | armaninoLLP.com
1 

C O A L I T I O N F O R 

N O N P R O F I T B O A R D 

D I V E R S I T Y D I S C L O S U R E 

To: The Honorable Daniel I. Werfel, Commissioner, Internal Revenue Service 

Mr. Edward Killen, Commissioner, Tax-Exempt and Government Entities Division, 

Internal Revenue Service 

Mr. Robert Malone, Director, Exempt Organizations Government Entities, Internal 

Revenue Service 

The Honorable Janet Yellen, Secretary of the Treasury, U.S. Department of Treasury 

Mr. Wally Adeyemo, Deputy Secretary of the Treasury, U.S. Department of Treasury 

Ms. Janis Bowdler, Counselor to the Secretary on Racial Equity, U.S. Department of 

Treasury 

Ms. Lily Batchelder, Assistant Secretary for Tax Policy, U.S. Department of Treasury 

Cc: Internal Revenue Service Advisory Council 

Date: June 15, 2023, Sent by Certified Mail 

Re: Proposal to Amend Internal Revenue Service Form 990 to Require Disclosure of 

Demographic Composition of Governing Boards 

Executive Summary 

The undersigned – organizations and individuals interested in the governance and operation 

of nonprofit organizations and committed to the value of diversity throughout organizations – 

submit this proposal to amend Internal Revenue Service (IRS) Form 990 to require 501(c)(3) 

charitable entities to disclose, at a minimum, the gender and racial/ethnic demographics of 

their boards, based on how board members self-identify. 

We propose that the IRS modify Form 990 by including a question to require disclosure of 

how board members in the aggregate self-identify by race/ethnicity and gender. Such a 

question could be added to either Part VI, Section A: Governing Body and Management, or 

Part VII, Section A: Officers, Directors, Trustees, etc. While our proposal focuses on gender 

and race/ethnicity since that has been the subject of most research on the value of board 

diversity, we would support including LGBTQ+ and disability disclosure as well. 

The signatories are prominent national and regional organizations and individuals in these 

and other categories: good governance, leadership for women and people of color, higher 

education, health care, philanthropy, law, business, and consulting.

We believe that making such data available, along with data the Form 990 already provides to 

the public and the nonprofits’ numerous stakeholders, will help advance diversity, equity, and 

inclusion, encourage transparency, and – most importantly – enhance the governance of all 

affected organizations. We base our request on these factors: (1) research links board 
2 

diversity and good governance;1(2) studies document the predominance of white males in the 

boardrooms of the largest and most influential nonprofits;2(3) access to information on

nonprofit board demographics is important and is difficult for stakeholders and interested 

members of the public to gather from available data.3

An important model for public disclosure now exists in the for-profit sector, where disclosure 

of such data, supported by the SEC, is now required of all Nasdaq’s listed companies and 

increasingly demanded of other for-profit companies. Following the Nasdaq requirements 

and in order to protect individual privacy, we are asking for reporting of aggregate, not 

individualized, data.4

Asking nonprofits to disclose demographic data is unlikely to impose an undue burden on

these organizations or on the IRS. The question would fit easily into the sections already 

requesting information about an organization’s board. The Form 990 currently asks nonprofit

institutions for a list of board members and some additional information about their board 

participation. It also asks a number of questions related to good governance which are not 

required by law but are intended to, and effectively do, encourage better governance 

practices. Questions about whether the organization has a conflict of interest policy or

whistleblower policy clearly have this effect. Adding a question about board diversity on the 

Form 990, not on the 990-EZ filed by smaller organizations, would be very much in line with 

the goals and character of the 990. It would not only provide the public with information it 

needs and ought to be able to access, but it also would signal that board diversity is a good 

governance issue. 

We believe such an amendment is in line with the stated commitment of the IRS “to ensuring 

equity, diversity and inclusion are integrated in the policies, procedures and practices used to 

carry out our mission.” 5

The IRS has the authority to amend the Form 990 to add such a question, as it did with the 

major additions to the Form in 2008, when it added questions about governance and 

management policies that are not required by the Internal Revenue Code. 

(For any questions see contact information at the end of this letter.) 

1

 See e.g., Lynne E. Devnew, Marlene Janzen Le Ber, Mariaterisa Torchia, Ronald J. Burke, eds., More Women 

on Boards: An International Perspective (Charlotte, NC, Information Age Publishing, 2018) at 3-47; Deborah 

L. Rhode & Amanda K. Packel, “Diversity on Corporate Boards: How Much Difference Does Difference

Make?” Delaware Journal of Corporate Law (2014); Securities and Exchange Commission (Release NO. 34-

90574: File No. SR-NASDAQ-2020-081, Dec. 4, 2020) The Nasdaq Stock Market LLC: Notice of Filing of

Proposed Rule change to Adopt Listing Rules Related to Board Diversity, at 7& 14-30,

https://www.sec.gov/rules/sro/nasdaq/2020/34-90574.pdf

2

 See e.g. Andrea Silbert, The Women’s Power Gap at Elite Universities: Scaling the Ivory Tower (Eos

Foundation, Jan. 2020) at 4, 17-18, https://www.womenspowergap.org/wp-content/uploads/2022/01/WPGPower-Gap-at-Elite-Universities-v17.pdf; and Closing the Gaps: Gender and Race in Nonprofit Boardrooms

(Women’s Nonprofit Leadership Initiative and The Nonprofit Center at La Salle University, Nov. 20220)

https://wnli.org/studies/

3

 See Silbert, supra, at 21, 25,34-35; and Closing the Gaps, supra, at 16-17. 4

See Securities and Exchange Commission (Release No. 34-92590; File Nos. SR-NASDAQ-2020-081; SRNASDAQ-2020-082, Aug. 6, 2021) Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Order

Approving Proposed Rule Changes, as Modified by Amendments No. 1, to Adopt Listing Rules Related to Board

Diversity, at https://www.sec.gov/rules/sro/nasdaq/2021/34-92590.pdf ; and Nasdaq, Board Diversity Matrix

Disclosure Requirements and Examples (Aug. 3, 2022) at

https://listingcenter.nasdaq.com/assets/Board%20Matrix%20Examples Website.pdf) 5 “Equity, Diversity and Inclusion at IRS” at Equity, Diversity and Inclusion at IRS | Internal Revenue Service
3 

I. Importance of the Modification

A. Diversity is a Commonly Accepted Standard of Good Governance

A large body of research on for-profit corporate board diversity, or the lack thereof, has 

demonstrated the value of diversity for good governance and has made the connection 

between diversity in the boardroom and diversity in the institution as a whole. Mainstream 

and highly visible organizations and publications, and countless studies and reports have 

made the case for gender and racially diverse boards for more than 15 years. They include the 

Conference Board, National Association of Corporate Directors (NACD), Harvard Business 

Review, Directors and Boards, major consulting firms, executive search firms, and individual 

scholars. Advocacy organizations, state legislatures and institutional investors have also 

championed board diversity.6

 Those promoting board diversity point to links between such 

diversity and enhanced organizational performance and decision making, including avoidance 

of group-think, attention to auditing, compliance and risk-taking and increased understanding 

of a more diverse consumer market. A 2020 national study of diversity on the boards of 

nonprofit educational and healthcare institutions reported that, although for-profit and 

nonprofit boards differ in important ways, board diversity brings similar benefits to the 

nonprofit boards and organizations.7

 

For 501(c)(3) charitable nonprofits whose purposes are to benefit the public, there is an 

additional and strong argument that good governance requires that these organizations have 

racially and ethnically and gender diverse directors to serve a diverse public. Furthermore, 

simple equity demands that leadership positions, including board seats, should be occupied 

by the diversity of people the institution serves and employs. 

B. Gender and Racial Gaps Persist in Nonprofit Boardrooms

The diversity problem in the nonprofit sector has not generated the same degree of interest 

and advocacy as that directed to the for-profit sector, partly because many people assume 

nonprofit boards are already diverse. Although there are many nonprofits that are highly 

populated, if not dominated, by women (such as women’s colleges, organizations serving a 

predominantly female population and small nonprofits), there are significant gender and 

racial gaps in the boardrooms of the largest and most influential nonprofits. 

6

 See e.g. Jared L. Landaw, Director Notes, “Maximizing the Benefits of Board Diversity,” (The Conference 

Board, June 2020) at https://www.conference-board.org/pdfdownload.cfm?masterProductID=20869; NACD 

BOARDTALK January 6, 2022, Boards Need to Think Differently and Be more Intentional About Board 

Diversity (Jan.6, 2022) at https://blog nacdonline.org/posts/think-differently-intentional-diversity; and 

Securities and Exchange Commission((Release No. 34-90574; File No. SR-NASDAQ-2020-081, December 4, 

2020) Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing of Proposed Rule 

Change to Adopt Listing Rules Related to Board Diversity, at https://www.sec.gov/rules/sro/nasdaq/2020/34-

90574.pdf

The SEC request for public comment on Nasdaq’s proposed rule change to support Nasdaq’s disclosure 

requirement includes references to innumerable studies, reports, and speeches on the value of board diversity 

and disclosure of board demographics by scholars, investors, consulting firms and public officials. For advocacy 

organizations see Thirty Percent Coalition at https://www.30percentcoalition.org ; 5050 Women on Boards at 

https://5050wob.com; and Alliance for Board Diversity at https://hacr.org/alliance-for-board-diversity/ 7 Vicki W. Kramer & Carolyn T. Adams, Increasing Gender Diversity on the Boards of Nonprofit Eds and 

Meds (Women’s Nonprofit Leadership Initiative and Nonprofit Issues, 2020) at https://wnli.org/studies/ and 

www nonprofitissues.com
4 

That has been documented in recent years by studies and reports in different geographic areas 

and nationally.8

These reports have found that, as in the for-profit corporate world, the most powerful 

nonprofit boards are overwhelmingly white and male. The largest nonprofits, where the gaps 

are most prevalent, are predominantly the institutions of higher education and healthcare 

(“eds and meds”). And these institutions are, in their size, wealth and complexity of 

operations, most like the for-profit organizations that are now subject to disclosure 

requirements. 

C. Access to Accurate Data Supports Good Governance but Data on Nonprofit

Boards is Not Readily Available

The tax-exempt status of 501(c)(3) organizations means they pay no federal income tax, no 

tax on investment income and, in most cases, no local taxes on the vast property they own. In 

addition, they are able to offer donors a tax benefit from contributing. To attain this 

designation, nonprofits must show that the organization will benefit the public broadly. 

Organizations whose purpose is to serve the public interest rely on their stakeholders: those 

who have an interest in the well-being of these institutions. These stakeholders include

employees, clients, students, faculty, alumni, patients, funders, contributors, lenders, and 

members of surrounding communities, not to mention the taxpayers who indirectly support 

these organizations by reason of their tax-exempt status. Stakeholders need to be able to hold 

these institutions accountable for their decisions. Accountability requires that stakeholders 

have easy access to the demographics of the boards of those nonprofits that rely on them for 

support, or from which they obtain services. In this way, the IRS would make more 

meaningful its requirement that 990s be made available to the public. 

Currently it is challenging, even for researchers, to get accurate data on the composition of 

nonprofit governing boards by gender, race/ethnicity, and other aspects of diversity. For 

example, a Philadelphia regional report explained that it examined “each institution’s 

website, which generally provided the list of names of the members of its board of directors. 

Some websites provided pictures of their board members, while most simply had a list of 

names, professional titles, and affiliations. Others merely listed names with no titles; and a 

few did not even list the names of board members.”9

 

The 990 asks for the directors’ names, whether they are independent directors, whether they 

are officers, how many hours they spend on nonprofit business weekly, and whether they are 

compensated. But it does not ask for demographic information. 

Challenges to compiling such board information have also confronted those who have long 

been interested in the demographic composition of the leadership of for-profit organizations. 

In response to repeated efforts by shareholders and advocacy groups, and in response to 

2020’s racial reckoning, more publicly held corporations now provide demographic 

disclosure in their proxy statements, whether pursuant to recent Nasdaq requirements, 

supported by the SEC, or voluntarily. In October 2021, the Conference Board released a 

8

 See e.g. Silbert, supra; Closing the Gaps, supra; and The Boston Club, Opportunities Abound, Intentionality 

Needed: The Boston Club’s 2019 Census of Women Directors and Chief Executives of Massachusetts’ Largest 

Nonprofit Organizations, at https://www.thebostonclub.com/the-boston-clubs-2019-nonprofit-board-census/ 9 See e.g., The Gender Gap in Nonprofit Boardrooms, and Closing the Gaps, supra, at 

https://www.wnli.org/studies; see also., Atinuke O. Adediran, Disclosures for Equity, 122 Columbia Law 

Review 865, 870 (2022). 


Drexel University John Fry President 

Drexel University Gupta Governance 

Institute Cassandra Brown Executive Director 

Drexel University School of Public 

Health Dr. Nathalie A. Bartle Professor/Associate Dean of Student Affairs (Ret.) 

Eastern Bank Nancy Huntington 

Stager Executive Vice President 

Edward G. Rendell, LLC Ed Rendell Former Governor & Former Mayor 

Eos Foundation Andrea Silbert President 

Episcopal Community Services of the 

Diocese of PA David E. Griffith Executive Director 

Epstein Consulting Group Wendy Epstein Principal 

Executive Leadership in Academic 

Medicine (ELAM) Nancy D. Spector, MD Executive Director 

FemmePharma Global Healthcare, Inc. Gerianne Tringali 

DiPiano Chief Executive Officer 

Fred T. Korematsu Institute Karen Korematsu Founder & Executive Director 

Gender Fair Amy Cross Founder 

Greater Philadelphia Cultural Alliance Patricia Wilson Aden President & CEO 

HELP: Higher Education Legal 

Professionals Principal and Founder 

Hispanic Association on Corporate 

Responsibility Cid Wilson President & CEO 

Hispanic National Bar Association Alba Cruz-Hacker Executive Director & COO 

HNBA VIA (Vision in Action) Fund Alba Cruz-Hacker President 

How Women Lead Julie Abrams CEO 

Hsu & Associates Vivian Hsu Principal 

Independence Foundation Judge Phyllis W. Beck 

(ret.) Board Chair 

Inforum Terry Barclay CEO

Inquilinos Boricuas en Acción-IBA Vanessa CalderonRosado Chief Executive Officer 

Interfaith Center on Corporate Responsibility Timothy Smith Senior Policy Advisor 

Interorganization Network (ION) Lynne Durbin President 

Japanese American National Museum Ann Burroughs President and CEO 

Kids First Chicago Daniel Anello CEO and Founder 

La Guagua 47 Community Arts Project Alba Martinez Executive Director 

La Salle University Ellen Reilly Chair, Board of Trustees 

Lancaster County Community 

Foundation Samuel Bressi President & CEO 

Latino Corporate Directors Association Ozzie Gromada Meza Acting President & CEO 

7
8 

Latinos LEAD Patrick Salazar Founder & Executive 

Director 

Leadership Education for Asian Pacifics (LEAP) Linda Akutagawa President & CEO 

Lehigh Valley Community Foundation Erika Petrozelli President & CEO 

Lewis Katz School of Medicine at Temple 

University Amy J. Goldberg Dean, Lewis Katz School of Medicine at TU 

National Association of Diversity Officers in Higher 

Education (NADOHE) 

Paulette Granberry 

Russell President 

National Asian Pacific American Bar Association Priya Purandare Executive Director 

National LGBTQ+ Bar Association D’Arcy Kemnitz Executive Director 

Pennsylvania Association of Nonprofit Organizations Anne Gingerich Executive Director 

Pennsylvania Institute of Certified Public 

Accountants (PICPA) Jen Cryder CEO 

Philadelphia Foundation Kate Allison Chair, Board of 

Managers 

Pedro A. Ramos President & CEO 

Praxis Consulting Group Linshuang Lu Managing Principal 

Randolph College Sue Ott Rowlands President 

Research for Action Jolley Bruce Christman Founder 

Salus University Michael Mittelman President 

Swarthmore College Harold Kalkstein Chair, Board of 

Managers 

Rhonda R. Cohen Former Vice Chair, 

Board of Managers 

Temple University JoAnne Epps Acting President 

The Barra Foundation Kristina L. Wahl President 

The Boston Club Lisa A. Prior President 

The Boston Foundation Keith A. Mahoney Vice President 

The Brownstein Corporation Howard Brod 

Brownstein President and CEO 

The Executive Leadership Council Michael C. Hyter President and CEO 

The Forum of Executive Women Katherine Kelton President 

The Foundation for Delaware County Frances M. Sheehan President 

The Hughes Group Judge Renee Cardwell 

Hughes (Ret.) CEO 

The Jacquelyn and Gregory Zehner Foundation Jacki Zehner President 

The Latina Circle, Inc. dba Amplify Latinx Eneida Roman CEO 

The ROZ Group, Inc. Rosalyn McPherson President & CEO 
The Women's Edge Elizabeth L. Hailer CEO 

Trower & Trower, Inc. Cathy Trower President 

Ujala Foundation Raj Gupta Chairman 

Urban Affairs Coalition Sharmain MatlockTurner CEO 

Arun S. Prabhakaran President 

Women Business Collaborative Gwen K. Young CEO 

Women Corporate Directors Foundation Jennifer Reynolds CEO 

Women Executive Leadership FL Katherine Young Board President 

Women's Bar Association of Massachusetts Jessica Babine WBA President 

Women's Funding Network Elizabeth BarajasRoman President and CEO 

Women’s Foundation California Bia Vieira Chief Strategist/

Incoming CEO 

Women's Law Forum Phoebe A. Haddon Chancellor Emerita and 

Professor of Law 

Women's Law Project Amal Bass Interim Co-Executive 

Director 

Women's Nonprofit Leadership Initiative Vicki W. Kramer Chair 

Women's Power Gap Marta T. Rosa, M. 

ED 

Senior Strategic 

Advisor Consultant 

WOMEN'S WAY Diane Cornman-Levy Chief Disruptor 

YWCA Boston Elizabeth Chandler President and CEO 

9
Carolyn T. Adams, Emeritus Dean & Professor, Temple University 

Charles E. Allen, Retired partner, Graimark Realty Advisors 

Jeremy Bearer-Friend, Associate Professor at George Washington University Law School 

Thomas Bender, Esq. 

Dorothy Brown, Book Author and Editor 

Samuel D. Brunson, Professor of Law, Loyola University Chicago 

Richard Chait, Professor Emeritus Harvard University 

Fernando Chang-Muy, Leadership Consultant 

Kelly McNamara Corley, Founder and Principal, The Red Bee Group 

Haile T. Debas, Dean of Medicine and Chancellor Emeritus UCSF 

Joanne Disch, PhD, RN, FAAN 

Karl E. Emerson, Attorney and Former Member of IRS TE/GE Advisory Committee 

Drew Faust, Arthur Kingsley Porter University Professor, Harvard University 

Carmen Febo-San Miguel, MD, Former CEO Taller Puertorriqueno 

Judith Gay, PhD, Consultant and VP Emerita, Community College of Philadelphia 

Gina Glantz, Founder, GenderAvenger 

Rosemarie B. Greco, Professional Board Director of public corporations and 

Retired CEO of two major banks 

Janet Haas, MD 

Philip Hackney, Associate Professor of Law, Pitt Law School 

Sondra Haley, Principal, The Red Bee Group 

Teresa D. Harrison, Professor of Economics & Academic Director 

Nannerl O. Keohane, President Emerita of Wellesley College and Duke University 

Patricia King, Professor of Law emerita 

Kathy Kretman, Professor 

Risa J. Lavizzo-Mourey, President Emerita Robert Wood Johnson Foundation 

Paul W. Lee, Retired Partner, Goodwin Procter LLP 

Lloyd Hitoshi Mayer, Professor at Notre Dame Law School 

Afaf Meleis, Dean Emerita, School of Nursing UPenn 

Individuals 

10
Demetri L. Morgan, Associate Professor of Higher Education, Loyola University, Chicago 

Anne Morrissey, Insurance Executive and Retired President of AmeriHealth Caritas 

Henry Ordower, Professor of Law, Saint Louis University 

Stephanie A. Scharf, PhD, JD 

Dianne L. Semingson, Board member and Chair, nonprofit organizations 

Wendy C. Shiba, Member of the Board of Trustees, Japanese American National Museum 

Gene Takagi, Principal, NEO Law Group 

Carol Tracy, Retired Executive Director, Women’s Law Project 

Richard Winchester, Professor of Law 

Toni G. Wolfman, Retired law firm partner, co-founder two national nonprofits, emerita college trustee 

Julie Wollman, Professor, University of Pennsylvania 

11

.

Get Outlook for Android
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

1

Thursday June 8, 2023

U.S. Department of the Treasury

Treasury Advisory Committee on Racial Equity (TACRE)

1500 Pennsylvania Avenue NW

Washington, DC 20220

US

via email to TACRE@Treasury.gov

Re: June 8, 2023 Meeting of the Treasury Advisory Committee on Racial Equity

We understand that “The Department of the Treasury is hosting its Fiscal Year 2023 

Quarter 3 meeting of the Treasury Advisory Committee on Racial Equity (‘TACRE’ or 

‘Committee’). The Committee is composed of 25 members who will provide 

information, advice, and recommendations to the Department of the Treasury on 

matters relating to the advancement of racial equity.”

We note that the impact of faulty policymaking in this area has grown worse over 

time. The damage (conflict of interest driven declines in ethical standards of 

behavior, environmental damage, elevated social and political instability due to 

growing concentration of wealth) will continue and accelerate.1

We further note that incompetence, anti-Black discrimination and exclusionary 

practices based on race are currently operational2in investment and finance, 

including regulatory bodies. Given this fact, we decline to directly address the 

issues raised, having done so3 over the past 30 years. 

We refer the Committee to the following:

FEDERAL AGENCY EQUITY ACTION PLANS: Executive Order on Advancing Racial 

Equity and Support for Underserved Communities Through the Federal Government 

Kindle Edition. https://www.amazon.com/FEDERAL-AGENCY-EQUITY-ACTIONPLANS-ebook/dp/B0B11LLRG3?ref =ast author dp

1 See: “Bank of England economist says people need to accept they are poorer.” Online at: 

https://www.bbc.com/news/business-65308769 Also see: “Britain hit by biggest strike in more than a decade with 

schools shut and rail networks disrupted.” https://cnb.cx/3DuPrib and Thousands strike across UK as unions 

increase pressure for better pay https://www.pbs.org/newshour/world/day-of-disruption-in-uk-as-hundreds-ofthousands-join-strike

2 See: “Viewpoint on Ukraine: Why African Wars Get Different Treatment.” Published 6 March 2022.Online at: 

https://www.bbc.com/news/world-africa-60603232

3 We include all linked documents by reference.
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

2

Thriving As a Minority-Owned Business in Corporate America: Building 

a Pathway to Success for Minority Entrepreneurs 1st ed.

https://www.amazon.com/Thriving-Minority-Owned-Business-CorporateAmerica/dp/1484272390

Rethinking Federal Reserve Policy in a Post-Covid Economy: From Interest Rates to 

Corporate Profits. https://www.impactinvesting.online/2023/06/rethinking-federalreserve-policy-in.html

Updated Information On Corporate and Foundation Donations to Black Lives Matter 

https://www.prlog.org/12962363-updated-information-on-corporate-andfoundation-donations-to-black-lives-matter.html

Report on Diversity at OMWI Agencies 

https://www.impactinvesting.online/2012/02/greenlining-releases-report-on.html

Unleashing the Power of Sustainable Investments: New Frontiers for Responsible 

Growth

https://mailchi.mp/466fd9443229/unleashing-the-power-of-sustainableinvestments-discover-new-frontiers-for-responsible-growth

New Investing Vehicles to Reduce the Black/White Wealth Gap. 

https://checkout.square.site/merchant/BV4QW2CACKV8F/checkout/DEGQ6O65M7M

FDYCG7TACBSP2

Discussion at the Future of Money Conference held by the Government Blockchain 

Association at https://youtu.be/n1i4J8df0t0

1. Monetary Social Control Theory

2. Racial Social Control Theory

3. Black White Wealth Distributions

We stated, on February 5, 2015, in testimony to the Norwegian Ministry of Finance 

(http://www.creativeinvest.com/NorwayTestimonyFeb52015.pdf ) and on April 22, 

2015 in comments to the Government of the United Kingdom: 

“As the market value of environmental, social and governance 

factors continues to grow, companies and investment managers will 

engage in fraudulent practices related to these factors. These 

practices will range from simple falsification of environmental, social 

and governance records to more sophisticated, but no less fraudulent 

methods related to environmental, social and governance ratings.” 
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

3

On September 22, 2015 automaker Volkswagen admitted that 

“’defeat devices’ used to cheat emissions testing were installed in 11 million 

vehicles worldwide.”

Starting in 1989, we were the first investment research firms to evaluate these 

factors:

See: Security backed exclusively by minority loans. American Banker Newspaper. 

December 2, 1994. (Edward Kulkosky). 

https://www.creativeinvest.com/mbsarticle.html

Also see: Social Performance Indicators for Banks, 2002. 

https://www.creativeinvest.com/SocialPerformanceIndicatorsfortheFinanceIndustry.

pdf

"Environmental Issues and Stock Returns." https://www.eventbrite.com/e/howenvironmental-issues-impact-stock-returns-tickets-2029288657

“Research firm Creative Investment Research launched an impact investing vehicle 

calling on the Federal Reserve to create a funding facility to reduce Black maternal 

mortality.” https://tpinsights.com/the-state-of-black-maternal-mortality-a-fundingcrisis-addressing-power-privilege-and-policy/

Additional specific input would be futile. 

Creative Investment Research and Mr. Cunningham (WMC) have long been 

concerned with the failure of bank and financial institution regulatory agencies to 

protect the public interest4. We base this on the following: 

• In 1992, in a regulatory filing with the Federal Reserve, we suggested the 

creation of an Investment Test as part of the Community Reinvestment Act (CRA) 

as a way to evaluate community development performance, another suggestion 

that was ignored until non-Black persons and firms could profit.

• In 1993, at the First Annual Greenlining Institute Conference on Community 

Development, we suggested the creation of government backed venture capital 

funds to take first risk position in the provision of equity capital to small, minority 

businesses on Georgia Avenue in NW Washington, DC. This morphed into the New 

Markets Tax Credit program, a real estate focused "community development" 

program that has fueled gentrification.

4 On July 3, 1993, WMC wrote to SEC Commissioner Mary Schapiro to notify the Commission about a certain, 

specific investing "scam." A timely warning was not issued to the investing public and members of the public were 

damaged. See: https://www.creativeinvest.com/SECNigerianLetter.pdf
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

4

• On November 3, 1994, in a speech titled “The Role of Minority 

Banks in Meeting the Credit Needs in the Marketplace” delivered at the Federal 

Reserve Bank of Kansas City Seminar on: Credit and the Disadvantaged, we 

suggested the Fed purchase mortgage-backed securities issued by Black owned 

banks as a way to address housing inequality while enhancing the impact of 

monetary policy, a suggestion the Fed ignored until majority-owned banks could 

profit.

• WMC designed the first mortgage security backed by home mortgage loans 

to low- and moderate-income persons and originated by minority-owned 

institutions. In October, 1995, the Washington Gas Light (WGL) Company retained 

WMC to create mortgage-backed securities (MBS) consisting of one to four family 

residential home loans originated by minority-owned financial institutions serving 

areas of high social need. Mr. Cunningham developed a completely original 

approach that involved geocoding and mapping, for the first time, the location of 

every loan in an MBS pool and tying that location to social data. (See: Security 

Backed Exclusively by Minority Loans, at 

https://www.creativeinvest.com/mbsarticle.html ). A sample map WMC created in 

1997 for this process is attached as Appendix A. 

• On April 30, 1997, in Case 97-1256 at the US Court of Appeals for the DC 

Circuit, Mr. Cunningham opposed the merger of Citigroup and Travelers and the 

elimination of the Glass–Steagall Act.

• In November, 1997 and, again in December, 2003, WMC wrote to the 

Division of Market Regulation at the Securities and Exchange Commission, on behalf 

of WMC and Creative Investment Research to request that CIR be considered a 

nationally recognized statistical rating organization ("NRSRO"). WMC requested this 

status only with respect to rating securities issued by financial institutions owned by 

women and minorities. WMC never received a reply from the Commission. We have 

attached a copy of a letter sent to Ms. Nazareth, Director, Division of Market 

Regulation, Securities and Exchange Commission, as Appendix B.

• In October 1998, in a petition to the United States Court of Appeals for the 

District of Columbia Circuit in opposition to the Citigroup/Travelers merger, we cited 

evidence that growing financial market malfeasance greatly exacerbated risks in 

financial markets, reducing the safety and soundness of large financial institutions. 

We went on to note that: 

“The nature of financial market activities is such that significant dislocations 

can and do occur quickly, with great force. These dislocations strike across 

institutional lines. That is, they affect both banks and securities firms. The 

financial institution regulatory structure is not in place to effectively evaluate 

these risks, however. Given this, the public is at risk.” 
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

5

On July 25, 2012, the New York Times reported that Sanford I Weill, former 

chairman and chief executive of defendant Citigroup “called for a wall between a 

bank’s deposit-taking operations and its risky trading businesses. In other words, 

he would like to resurrect the regulation (Glass-Stegall) that he once fought.” 

• On June 15, 2000, we testified before the House Financial Services 

Subcommittee on Capital Markets, Insurance and Government Sponsored 

Enterprises (GSE’s) of the US Congress. We suggested that the GSE’s (Fannie Mae 

and Freddie Mac) be subject to a thorough “Social Audit.” A Social Audit is an 

examination of the performance of an enterprise relative to certain social 

objectives. It also includes a review of ethical practices at the firm. Had they been 

subject to this audit, certain flaws in their operation which led to their failure, 

including ethical shortcomings, may have been revealed earlier. See: 

https://www.creativeinvest.com/fnma/

• In 2001, Mr. Cunningham helped create the first wide scale home mortgage 

loan modification project. See: Property Flipping Remediation Yields Investmentgrade Security at: http://www.creativeinvest.com/remediation.pdf and 

https://www.creativeinvest.com/PropertyFlipping.pdf

• On December 22, 2003, statistical models we created using the Fully 

Adjusted Return® Methodology predicted the financial crisis of 2008. See page 6: 

http://www.sec.gov/rules/proposed/s71903/wmccir122203.pdf 

• In 2005, we served as an expert witness for homeowners in a case against 

PMI Group, Credit Suisse First Boston, Moody’s, Standard and Poor’s, Fairbanks 

Capital Corporation, Select Portfolio Servicing, US Bank National Association, as 

Trustee of CSFB ABS Series 2002-HEI, et. al., in the New Jersey Superior Court Law 

Division - Monmouth County. Our expert witness testimony held corporate parties 

responsible for facilitating predatory lending practices. Had this single case been 

successful, we believe the financial crisis of 2008 would not have occurred.

• On Monday, April 11, 2005, WMC testified before Judge William H. Pauley III 

in the U.S. District Court for the Southern District of New York on behalf of the 

public at a fairness hearing regarding the $1.4 billion-dollar Global Research Analyst 

Settlement. See: https://creativeinvest.com/fairness.html

• On December 22, 2005, Mr. Cunningham met with Ms. Elaine M. Hartmann of 

the Division of Market Regulation at the U.S. Securities and Exchange Commission. 

At that meeting, he issued a strongly worded warning that system-wide economic 

and market failure was a growing possibility. 
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

6

• On February 6, 2006, statistical models created by WMC using 

the Fully Adjusted Return ® Methodology signaled the probability of system-wide 

economic and market failure. (See page 2: 

http://www.sec.gov/rules/proposed/s71005/wcunningham5867.pdf )

• WMC designed the first mortgage security backed by Targeted Energy 

Efficient Mortgages in June 2006.

https://www.creativeinvest.com/EnergyEfficientMortgageMBSJune2006.pdf

• On June 18, 2009, WMC testified before the House Ways and Means Select 

Revenue Measures Subcommittee at a joint hearing with the Subcommittee on 

Domestic Monetary Policy and Technology of the Financial Services Committee 

concerning ways to improve the New Markets Tax Credit Program. See: 

https://www.creativeinvest.com/nmtctestimony.html and 

https://financialservices.house.gov/media/file/hearings/111/printed%20hearings/1

11-47.pdf ) 

• On January 25, 2012, WMC submitted a "Friend of the Court" brief in a case 

before the United States Court of Appeals for the Second Circuit (Case 11-5227). As 

a friend to the Court, Mr. Cunningham provides an independent, objective and 

unbiased view in support of broad public interests. His education and experience 

uniquely positioned him to provide objective, independent research and opinions 

concerning the issues central to the case.

• Mr. Cunningham’s presentation at the Texas Association of African American 

Chambers of Commerce resulted in successful crowdfunding legislation for the State

of Texas. 

https://www.creativeinvest.com/TexasEconomicForecastCrowdfundingBill.pdf

• On August 13, 2015, Mr. Cunningham provided testimony on the Department 

of Labor’s Fiduciary Rule. Online at https://youtu.be/kOGS-DdLYe0 

• Our June 11, 2016 forecast predicted the election of Donald J. Trump. See: 

Why Trump Will Win. https://www.linkedin.com/pulse/why-trump-win-williammichael-cunningham-am-mba/

• Following the election, our December 26, 2016 forecast stated:

“Under any conceivable scenario, the current situation is very bad, and I 

mean toxic, for democratic institutions in general and for people of color 

specifically. Bottom line: our Fully Adjusted Return Forecast indicates that, 

over time, things will get much, much worse.....”
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

7

See: Trumpism. https://www.linkedin.com/pulse/trumpismwilliam-michael-cunningham-am-mba/

• November 30, 2018 Letter to John Rogers Jr., Vice Chair of the Board of 

Directors, Regarding the Department of Economics at the University of Chicago. 

See: https://twitter.com/CreativeInv/status/1666233299730046978?s=20

• As we predicted on January 27, 2022, the Russian Federation and the Bank

of Russia have agreed on a future regime..in which cryptocurrencies are recognized 

as an analogue of currencies, and not digital financial assets (DFA)." See: 

https://youtu.be/n1i4J8df0t0

 

• Mr. Cunningham has been concerned with using new financial technologies to 

maximize social and financial return. See: Bitcoin and Blockchain Explained. 

https://www.udemy.com/course/bitcoin-explained/

• Creative Investment Research was one of the first signatories to the UN 

Global Principles for Responsible Investment (www.unpri.org). See: 

http://www.creativeinvest.com/PRINews2009land.jpg

Mr. Cunningham has a long track record of analyzing and offering solutions as part 

of his response to proposed regulatory agency rules:

• October 04, 2006. Roundtable discussions relating to the use of eXtensible 

Business Reporting Language (XBRL). [File No. 4-515]. 

https://www.sec.gov/news/press/4-515/wcunningham7465.pdf Page 17.

• Our 2003 comments on proposed proxy voting rules that would, under 

certain circumstances, require companies to include in their proxy materials 

security holder nominees for election as director.

https://www.sec.gov/rules/proposed/s71903/wmccir122203.pdf

• See: Comments on Proposed Rule: Internet Availability of Proxy Materials 

Release Nos. 34-52926 IC-27182 File No. S7-10-05. Confirmed that system-wide 

economic and market failure was a growing possibility. (See page 2:

http://www.sec.gov/rules/proposed/s71005/wcunningham5867.pdf )

• Shareholder Proposals Relating to the Election of Directors. Release No. 34-

56161 File No. S7-17-07 https://www.sec.gov/comments/s7-16-07/s71607-

495.pdf

• We have requested that the U.S. Securities and Exchange Commission (SEC) 

develop mandatory rules for public companies to disclose high-quality, comparable, 

William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

9
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

10

These regulatory failings have real implications for the public. 

Regulators have abdicated their responsibility to protect the public interest, if that 

interest includes maintaining living standards6. Note that, with growing competition 

6 See: https://www.bbc.com/news/business65308769#:~:text=Bank%20of%20England%20economist%20says%20people%20need%20to%20accept%20they%

20are%20poorer,-Published
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

11

from fintech firms and alternatives, like bitcoin, this may imply the 

wholesale exit of banking institutions from financial institution regulatory systems. 

This would not be in the public interest. 
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

12

Appendix A

William Michael Cunningham manages an investment advisory and research firm, 

Creative Investment Research, founded in 1989 to expand the capacity of capital 

markets to provide capital, credit and financial services in minority and underserved 

areas and markets. 

We have done so by creating new financial instruments and by applying existing 

financial market technology to underserved areas. The Community Development 

Financial Institution Fund of the US Department of the Treasury certified the firm as 

a Community Development Entity on August 29, 2003. The Small Business 

Administration certified the firm as an 8(a)-program participant on October 19, 

2005. (We did not receive any benefit or revenue due to our participation in the 

8(a) program.)

In 1991, Mr. Cunningham created the first systematic bank analysis system using 

social and financial data, the Fully Adjusted Return® methodology. In 1992, he 

developed the first CRA securitization, a Fannie Mae MBS security backed by home 

mortgage loans originated by minority banks and thrifts.
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

13

In 2001, he helped create the first predatory lending remediation/repair MBS 

security. 7

Also see:

• Corporate and Mutual Fund Scandals in Review. 15th Annual SRI in the 

Rockies Conference. Keystone, Colorado. Thursday, October 7, 2004. 

https://creativeinvest.com/sri/CorpFraudSRIITR.pdf

• BLACK WOMENOMICS Maternal Mortality Reparation Facility

https://blackwomenomics.com/ 

• CHILD TAX CREDIT https://www.childtaxcredit.net/ 

• CORPORATE PLEDGES TO BLACK LIVES MATTER

https://www.blacklivesmattercorporatepledges.com/ 

• Advancing Racial Equity and Support for Underserved Communities 

Through the Federal Government. https://www.equityactionplans.com/

• The Crisis in Black Housing

https://drive.google.com/file/d/11jfEtWfQY5Rpdbpw0s6stHhawY0iero6/view

7

Pool Client Originator Social Characteristics

FN374870 Faith-based Pension Fund National Mortgage 

Broker 

Mortgages originated by minority 

and women-owned financial 

institutions serving areas of high 

social need. 

FN296479 

FN300249 

GN440280 Utility Company Pension Fund 

FN374869 Minority-owned 

financial institutions 

FN376162 

FN254066 Faith-based Pension Fund Local bank Predatory lending remediation 
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

14

Appendix B

December 8, 2005

Ms. Elaine M. Hartmann

Division of Market Regulation

U.S. Securities and Exchange Commission

450 5th Street, NW

Washington, DC 20549

Dear Ms. Hartmann,

Creative Investment Research (CIR) has requested that the Division of Market

Regulation not recommend enforcement action to the U.S. Securities and Exchange

Commission if CIR is recognized as a Nationally Recognized Statistical Rating

Organization (NRSRO) for purposes of applying Rule 15c3-1 under the Securities 

and Exchange Act of 1934, as amended and codified at 17 C.F.R. 240.15c3-1 with 

respect to rating short term debt vehicles issued by women and minority owned 

financial institutions. 

As part of the NRSRO recognition process, we have provided you and your staff 

with information regarding our qualifications, including confidential, nonpublic 

information on our trade secret protected Fully Adjusted Return ® methodology. 

Thank you.

Sincerely,

William Michael Cunningham

CEO and Social Investment Advisor

Sample page below
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

15
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

1

Monday, September 4, 2023

U.S. Department of the Treasury

Treasury Advisory Committee on Racial Equity (TACRE)

1500 Pennsylvania Avenue NW

Washington, DC 20220

US

via email to TACRE@Treasury.gov

Re: September 19, 2023 Meeting of the Treasury Advisory Committee on Racial 

Equity

We understand that “The Department of the Treasury is hosting its Fiscal Year 2023 

Quarter 4 meeting of the Treasury Advisory Committee on Racial Equity (‘TACRE’ or 

‘Committee’). The Committee is composed of 25 members who will provide 

information, advice, and recommendations to the Department of the Treasury on 

matters relating to the advancement of racial equity.”

We note that the impact of faulty policymaking in this area has grown worse over 

time. The damage (conflict of interest driven declines in ethical standards of 

behavior, environmental damage, elevated social and political instability due to 

growing concentration of wealth) will continue and accelerate.1

We further note that incompetence, anti-Black discrimination and exclusionary 

practices based on race are currently operational2in investment and finance, 

including regulatory bodies. Given this fact, we decline to directly address the 

issues raised, having done so3 over the past 30 years. 

We refer the Committee to the following:

Lawsuit Targeting Fearless Fund Part of a Disturbing Trend. 

https://minoritybank.com/the-lawsuit-targeting-the-fearless-fund-is-part-of-adisturbing-trend/

Black Businesses Projected To See $1B In Loans From SBA -

https://www.blackenterprise.com/analysis-sba-projected-to-supply-blackbusinesses-1-billion-in-loans-this-year/

1 See: “Bank of England economist says people need to accept they are poorer.” Online at: 

https://www.bbc.com/news/business-65308769 Also see: “Britain hit by biggest strike in more than a decade with 

schools shut and rail networks disrupted.” https://cnb.cx/3DuPrib and Thousands strike across UK as unions 

increase pressure for better pay https://www.pbs.org/newshour/world/day-of-disruption-in-uk-as-hundreds-ofthousands-join-strike

2 See: “Viewpoint on Ukraine: Why African Wars Get Different Treatment.” Published 6 March 2022.Online at: 

https://www.bbc.com/news/world-africa-60603232

3 We include all linked documents by reference.
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

2

Three years after George Floyd's murder, is America in a better place? 

https://news.yahoo.com/george-floyd-three-years-anniversary-murder-americaminneapolis-police-090046153.html

FEDERAL AGENCY EQUITY ACTION PLANS: Executive Order on Advancing Racial 

Equity and Support for Underserved Communities Through the Federal Government 

Kindle Edition. https://www.amazon.com/FEDERAL-AGENCY-EQUITY-ACTIONPLANS-ebook/dp/B0B11LLRG3?ref =ast author dp

Thriving As a Minority-Owned Business in Corporate America: Building a Pathway to 

Success for Minority Entrepreneurs 1st ed. https://www.amazon.com/ThrivingMinority-Owned-Business-Corporate-America/dp/1484272390

Rethinking Federal Reserve Policy in a Post-Covid Economy: From Interest Rates to 

Corporate Profits. https://www.impactinvesting.online/2023/06/rethinking-federalreserve-policy-in.html

Updated Information On Corporate and Foundation Donations to Black Lives Matter 

https://www.prlog.org/12962363-updated-information-on-corporate-andfoundation-donations-to-black-lives-matter.html

Report on Diversity at OMWI Agencies 

https://www.impactinvesting.online/2012/02/greenlining-releases-report-on.html

Unleashing the Power of Sustainable Investments: New Frontiers for Responsible 

Growth

https://mailchi.mp/466fd9443229/unleashing-the-power-of-sustainableinvestments-discover-new-frontiers-for-responsible-growth

New Investing Vehicles to Reduce the Black/White Wealth Gap. 

https://checkout.square.site/merchant/BV4QW2CACKV8F/checkout/DEGQ6O65M7M

FDYCG7TACBSP2

Discussion at the Future of Money Conference held by the Government Blockchain 

Association at https://youtu.be/n1i4J8df0t0

1. Monetary Social Control Theory

2. Racial Social Control Theory

3. Black White Wealth Distributions

We stated, on February 5, 2015, in testimony to the Norwegian Ministry of Finance 

(http://www.creativeinvest.com/NorwayTestimonyFeb52015.pdf ) and on April 22, 

2015 in comments to the Government of the United Kingdom: 
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

3

“As the market value of environmental, social and 

governance factors continues to grow, companies and investment 

managers will engage in fraudulent practices related to these 

factors. These practices will range from simple falsification of 

environmental, social and governance records to more sophisticated, 

but no less fraudulent methods related to environmental, social and 

governance ratings.” 

On September 22, 2015 automaker Volkswagen admitted that “’defeat 

devices’ used to cheat emissions testing were installed in 11 million 

vehicles worldwide.”

Starting in 1989, we were the first investment research firms to evaluate these 

factors:

See: Security backed exclusively by minority loans. American Banker Newspaper. 

December 2, 1994. (Edward Kulkosky). 

https://www.creativeinvest.com/mbsarticle.html

Also see: Social Performance Indicators for Banks, 2002. 

https://www.creativeinvest.com/SocialPerformanceIndicatorsfortheFinanceIndustry.

pdf

"Environmental Issues and Stock Returns." https://www.eventbrite.com/e/howenvironmental-issues-impact-stock-returns-tickets-2029288657

“Research firm Creative Investment Research launched an impact investing vehicle 

calling on the Federal Reserve to create a funding facility to reduce Black maternal 

mortality.” https://tpinsights.com/the-state-of-black-maternal-mortality-a-fundingcrisis-addressing-power-privilege-and-policy/

Additional specific input would be futile. 

Creative Investment Research and Mr. Cunningham (WMC) have long been 

concerned with the failure of bank and financial institution regulatory agencies to 

protect the public interest4. We base this on the following: 

• In 1992, in a regulatory filing with the Federal Reserve, we suggested the 

creation of an Investment Test as part of the Community Reinvestment Act (CRA) 

as a way to evaluate community development performance, another suggestion 

that was ignored until non-Black persons and firms could profit.

4 On July 3, 1993, WMC wrote to SEC Commissioner Mary Schapiro to notify the Commission about a certain, 

specific investing "scam." A timely warning was not issued to the investing public and members of the public were 

damaged. See: https://www.creativeinvest.com/SECNigerianLetter.pdf
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

4

• In 1993, at the First Annual Greenlining Institute Conference on Community 

Development, we suggested the creation of government backed venture capital 

funds to take first risk position in the provision of equity capital to small, minority 

businesses on Georgia Avenue in NW Washington, DC. This morphed into the New 

Markets Tax Credit program, a real estate focused "community development" 

program that has fueled gentrification.

• On November 3, 1994, in a speech titled “The Role of Minority Banks in 

Meeting the Credit Needs in the Marketplace” delivered at the Federal Reserve Bank 

of Kansas City Seminar on: Credit and the Disadvantaged, we suggested the Fed 

purchase mortgage-backed securities issued by Black owned banks as a way to 

address housing inequality while enhancing the impact of monetary policy, a 

suggestion the Fed ignored until majority-owned banks could profit.

• WMC designed the first mortgage security backed by home mortgage loans 

to low- and moderate-income persons and originated by minority-owned 

institutions. In October, 1995, the Washington Gas Light (WGL) Company retained 

WMC to create mortgage-backed securities (MBS) consisting of one to four family 

residential home loans originated by minority-owned financial institutions serving 

areas of high social need. Mr. Cunningham developed a completely original 

approach that involved geocoding and mapping, for the first time, the location of 

every loan in an MBS pool and tying that location to social data. (See: Security 

Backed Exclusively by Minority Loans, at 

https://www.creativeinvest.com/mbsarticle.html ). A sample map WMC created in 

1997 for this process is attached as Appendix A. 

• On April 30, 1997, in Case 97-1256 at the US Court of Appeals for the DC 

Circuit, Mr. Cunningham opposed the merger of Citigroup and Travelers and the 

elimination of the Glass–Steagall Act.

• In November, 1997 and, again in December, 2003, WMC wrote to the 

Division of Market Regulation at the Securities and Exchange Commission, on behalf 

of WMC and Creative Investment Research to request that CIR be considered a 

nationally recognized statistical rating organization ("NRSRO"). WMC requested this 

status only with respect to rating securities issued by financial institutions owned by 

women and minorities. WMC never received a reply from the Commission. We have 

attached a copy of a letter sent to Ms. Nazareth, Director, Division of Market 

Regulation, Securities and Exchange Commission, as Appendix B.

• In October 1998, in a petition to the United States Court of Appeals for the 

District of Columbia Circuit in opposition to the Citigroup/Travelers merger, we cited 

evidence that growing financial market malfeasance greatly exacerbated risks in 
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

5

financial markets, reducing the safety and soundness of large financial 

institutions. We went on to note that: 

“The nature of financial market activities is such that significant 

dislocations can and do occur quickly, with great force. These 

dislocations strike across institutional lines. That is, they affect both 

banks and securities firms. The financial institution regulatory 

structure is not in place to effectively evaluate these risks, however. 

Given this, the public is at risk.” 

On July 25, 2012, the New York Times reported that Sanford I Weill, former 

chairman and chief executive of defendant Citigroup “called for a wall between a 

bank’s deposit-taking operations and its risky trading businesses. In other words, 

he would like to resurrect the regulation (Glass-Stegall) that he once fought.” 

• On June 15, 2000, we testified before the House Financial Services 

Subcommittee on Capital Markets, Insurance and Government Sponsored 

Enterprises (GSE’s) of the US Congress. We suggested that the GSE’s (Fannie Mae 

and Freddie Mac) be subject to a thorough “Social Audit.” A Social Audit is an 

examination of the performance of an enterprise relative to certain social 

objectives. It also includes a review of ethical practices at the firm. Had they been 

subject to this audit, certain flaws in their operation which led to their failure, 

including ethical shortcomings, may have been revealed earlier. See: 

https://www.creativeinvest.com/fnma/

• In 2001, Mr. Cunningham helped create the first wide scale home mortgage 

loan modification project. See: Property Flipping Remediation Yields Investmentgrade Security at: http://www.creativeinvest.com/remediation.pdf and 

https://www.creativeinvest.com/PropertyFlipping.pdf

• On December 22, 2003, statistical models we created using the Fully 

Adjusted Return® Methodology predicted the financial crisis of 2008. See page 6: 

http://www.sec.gov/rules/proposed/s71903/wmccir122203.pdf 

• In 2005, we served as an expert witness for homeowners in a case against 

PMI Group, Credit Suisse First Boston, Moody’s, Standard and Poor’s, Fairbanks 

Capital Corporation, Select Portfolio Servicing, US Bank National Association, as 

Trustee of CSFB ABS Series 2002-HEI, et. al., in the New Jersey Superior Court Law 

Division - Monmouth County. Our expert witness testimony held corporate parties 

responsible for facilitating predatory lending practices. Had this single case been 

successful, we believe the financial crisis of 2008 would not have occurred.
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

6

• On Monday, April 11, 2005, WMC testified before Judge William 

H. Pauley III in the U.S. District Court for the Southern District of New York on 

behalf of the public at a fairness hearing regarding the $1.4 billion-dollar Global 

Research Analyst Settlement. See: https://creativeinvest.com/fairness.html

• On December 22, 2005, Mr. Cunningham met with Ms. Elaine M. Hartmann of 

the Division of Market Regulation at the U.S. Securities and Exchange Commission. 

At that meeting, he issued a strongly worded warning that system-wide economic 

and market failure was a growing possibility. 

• On February 6, 2006, statistical models created by WMC using the Fully 

Adjusted Return ® Methodology signaled the probability of system-wide economic 

and market failure. (See page 2: 

http://www.sec.gov/rules/proposed/s71005/wcunningham5867.pdf )

• WMC designed the first mortgage security backed by Targeted Energy 

Efficient Mortgages in June 2006.

https://www.creativeinvest.com/EnergyEfficientMortgageMBSJune2006.pdf

• On June 18, 2009, WMC testified before the House Ways and Means Select 

Revenue Measures Subcommittee at a joint hearing with the Subcommittee on 

Domestic Monetary Policy and Technology of the Financial Services Committee 

concerning ways to improve the New Markets Tax Credit Program. See: 

https://www.creativeinvest.com/nmtctestimony.html and 

https://financialservices.house.gov/media/file/hearings/111/printed%20hearings/1

11-47.pdf ) 

• On January 25, 2012, WMC submitted a "Friend of the Court" brief in a case 

before the United States Court of Appeals for the Second Circuit (Case 11-5227). As 

a friend to the Court, Mr. Cunningham provides an independent, objective and 

unbiased view in support of broad public interests. His education and experience 

uniquely positioned him to provide objective, independent research and opinions 

concerning the issues central to the case.

• Mr. Cunningham’s presentation at the Texas Association of African American 

Chambers of Commerce resulted in successful crowdfunding legislation for the State 

of Texas. 

https://www.creativeinvest.com/TexasEconomicForecastCrowdfundingBill.pdf

• On August 13, 2015, Mr. Cunningham provided testimony on the Department 

of Labor’s Fiduciary Rule. Online at https://youtu.be/kOGS-DdLYe0 
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

7

• Our June 11, 2016 forecast predicted the election of Donald J. 

Trump. See: Why Trump Will Win. https://www.linkedin.com/pulse/why-trump-winwilliam-michael-cunningham-am-mba/

• Following the election, our December 26, 2016 forecast stated:

“Under any conceivable scenario, the current situation is very bad, and I 

mean toxic, for democratic institutions in general and for people of color 

specifically. Bottom line: our Fully Adjusted Return Forecast indicates that, 

over time, things will get much, much worse.....”

See: Trumpism. https://www.linkedin.com/pulse/trumpism-william-michaelcunningham-am-mba/

• November 30, 2018 Letter to John Rogers Jr., Vice Chair of the Board of 

Directors, Regarding the Department of Economics at the University of Chicago. 

See: https://twitter.com/CreativeInv/status/1666233299730046978?s=20

• As we predicted on January 27, 2022, the Russian Federation and the Bank

of Russia have agreed on a future regime..in which cryptocurrencies are recognized 

as an analogue of currencies, and not digital financial assets (DFA)." See: 

https://youtu.be/n1i4J8df0t0

 

• Mr. Cunningham has been concerned with using new financial technologies to 

maximize social and financial return. See: Bitcoin and Blockchain Explained. 

https://www.udemy.com/course/bitcoin-explained/

• Creative Investment Research was one of the first signatories to the UN 

Global Principles for Responsible Investment (www.unpri.org). See: 

http://www.creativeinvest.com/PRINews2009land.jpg

Mr. Cunningham has a long track record of analyzing and offering solutions as part 

of his response to proposed regulatory agency rules:

• October 04, 2006. Roundtable discussions relating to the use of eXtensible 

Business Reporting Language (XBRL). [File No. 4-515]. 

https://www.sec.gov/news/press/4-515/wcunningham7465.pdf Page 17.

• Our 2003 comments on proposed proxy voting rules that would, under 

certain circumstances, require companies to include in their proxy materials 

security holder nominees for election as director.

https://www.sec.gov/rules/proposed/s71903/wmccir122203.pdf
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

8

• See: Comments on Proposed Rule: Internet Availability of Proxy Materials 

Release Nos. 34-52926 IC-27182 File No. S7-10-05. Confirmed that system-wide 

economic and market failure was a growing possibility. (See page 2:

http://www.sec.gov/rules/proposed/s71005/wcunningham5867.pdf )

• Shareholder Proposals Relating to the Election of Directors. Release No. 34-

56161 File No. S7-17-07 https://www.sec.gov/comments/s7-16-07/s71607-

495.pdf

• We have requested that the U.S. Securities and Exchange Commission (SEC) 

develop mandatory rules for public companies to disclose high-quality, comparable, 

decision-useful information concerning BLM Pledge fulfillment. See: 

https://www.sec.gov/rules/petitions/2021/petn4-774.pdf

• This Week in ESG and Impact Investing: SEC’s Proposed Climate-Related 

Disclosure Requirements. https://www.impactinvesting.online/2022/03/secsproposed-climate-related.html?spref=tw

Our economic models clearly predict the outcome of this and related regulatory 

efforts. Detailing and describing these outcomes would serve no purpose other than 

to enrich a set of non-African American individuals and entities while simultaneously 

damaging the public. While we decline to do so, note the following: As Mr. 

Cunningham has demonstrated, inadequate consideration of the public interest 

damaged the public and investors. Current regulatory practices protect the 

monetary interest of a small set of non-African American persons, fail to protect the 

general public, and damage long term economic prospects.5 

5 We note that the LIBOR scandal and crisis was generated by a collusive agreement in restraint of trade resulting in 

LIBOR rate manipulation and is a direct result of the biggest regulatory failure in the history of financial markets. 

See: https://en.wikipedia.org/wiki/Libor scandal As a market failure, it is second only to the cost of the failure to 

protect human lives during the Atlantic slave trade. 

William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

10
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

11

These regulatory failings have real implications for the public. 

Regulators have abdicated their responsibility to protect the public interest, if that 

interest includes maintaining living standards6. Note that, with growing competition 

6 See: https://www.bbc.com/news/business65308769#:~:text=Bank%20of%20England%20economist%20says%20people%20need%20to%20accept%20they%

20are%20poorer,-Published
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

12

from fintech firms and alternatives, like bitcoin, this may imply the 

wholesale exit of banking institutions from financial institution regulatory systems. 

This would not be in the public interest. 
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

13

Appendix A

William Michael Cunningham manages an investment advisory and research firm, 

Creative Investment Research, founded in 1989 to expand the capacity of capital 

markets to provide capital, credit and financial services in minority and underserved 

areas and markets. 

We have done so by creating new financial instruments and by applying existing 

financial market technology to underserved areas. The Community Development 

Financial Institution Fund of the US Department of the Treasury certified the firm as 

a Community Development Entity on August 29, 2003. The Small Business 

Administration certified the firm as an 8(a)-program participant on October 19, 

2005. (We did not receive any benefit or revenue due to our participation in the 

8(a) program.)

In 1991, Mr. Cunningham created the first systematic bank analysis system using 

social and financial data, the Fully Adjusted Return® methodology. In 1992, he 

developed the first CRA securitization, a Fannie Mae MBS security backed by home 

mortgage loans originated by minority banks and thrifts.
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

14

In 2001, he helped create the first predatory lending remediation/repair MBS 

security. 7

Also see:

• Corporate and Mutual Fund Scandals in Review. 15th Annual SRI in the 

Rockies Conference. Keystone, Colorado. Thursday, October 7, 2004. 

https://creativeinvest.com/sri/CorpFraudSRIITR.pdf

• BLACK WOMENOMICS Maternal Mortality Reparation Facility

https://blackwomenomics.com/ 

• CHILD TAX CREDIT https://www.childtaxcredit.net/ 

• CORPORATE PLEDGES TO BLACK LIVES MATTER

https://www.blacklivesmattercorporatepledges.com/ 

• Advancing Racial Equity and Support for Underserved Communities 

Through the Federal Government. https://www.equityactionplans.com/

• The Crisis in Black Housing

https://drive.google.com/file/d/11jfEtWfQY5Rpdbpw0s6stHhawY0iero6/view

7

Pool Client Originator Social Characteristics

FN374870 Faith-based Pension Fund National Mortgage 

Broker 

Mortgages originated by minority 

and women-owned financial 

institutions serving areas of high 

social need. 

FN296479 

FN300249 

GN440280 Utility Company Pension Fund 

FN374869 Minority-owned 

financial institutions 

FN376162 

FN254066 Faith-based Pension Fund Local bank Predatory lending remediation 
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

info@creativeinvest.com

www.creativeinvest.com

15

Appendix B

December 8, 2005

Ms. Elaine M. Hartmann

Division of Market Regulation

U.S. Securities and Exchange Commission

450 5th Street, NW

Washington, DC 20549

Dear Ms. Hartmann,

Creative Investment Research (CIR) has requested that the Division of Market

Regulation not recommend enforcement action to the U.S. Securities and Exchange

Commission if CIR is recognized as a Nationally Recognized Statistical Rating

Organization (NRSRO) for purposes of applying Rule 15c3-1 under the Securities 

and Exchange Act of 1934, as amended and codified at 17 C.F.R. 240.15c3-1 with 

respect to rating short term debt vehicles issued by women and minority owned 

financial institutions. 

As part of the NRSRO recognition process, we have provided you and your staff 

with information regarding our qualifications, including confidential, nonpublic 

information on our trade secret protected Fully Adjusted Return ® methodology. 

Thank you.

Sincerely,

William Michael Cunningham

CEO and Social Investment Advisor

Sample page below
William Michael Cunningham

Economist and ESG/Impact Investing Researcher

16