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    <title>Marc J Lane</title>
    <link>http://www.marcjlane.com/news/</link>
    <description>News Letters and Articles</description>
    <category />
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    <item>
      <guid isPermaLink="false">http://www.marcjlane.com/index.php?src=news&amp;refno=699&amp;category=2026 Lane Reports</guid>
      <title>Accelerating the Circular Economy: Why Speed Matters Now</title>
      <description>&lt;/p&gt;
&lt;p&gt;The idea of a circular economy has been circulating for years, but the urgency behind it has never been sharper. As global demand for materials rises and waste volumes climb, the old linear model of producing, consuming, and discarding is hitting its limits. A circular approach&amp;mdash;where products are designed to last, materials are kept in circulation, and waste becomes a resource&amp;mdash;offers a path that&amp;rsquo;s both sustainable and economically promising. The challenge is no longer convincing people that circularity matters; it&amp;rsquo;s figuring out how to make it happen faster.&lt;/p&gt;
&lt;p&gt;Policy is one of the strongest accelerators. When governments set clear expectations&amp;mdash;whether through repair‑friendly regulations, incentives for recycled content, or accountability for end‑of‑life waste&amp;mdash;businesses respond. The most successful examples around the world show that when rules reward durability and penalize waste, innovation follows. Companies begin to rethink how they design products, how they source materials, and how they manage what happens after a product&amp;rsquo;s first life.&lt;/p&gt;
&lt;p&gt;Technology is another powerful catalyst. Digital tools are reshaping how materials move through the economy. Sensors can track the condition of equipment, allowing repairs before breakdowns. Data platforms can match one company&amp;rsquo;s waste with another&amp;rsquo;s raw material needs. Advanced analytics help manufacturers understand where resources are being lost and how to close those loops. These technologies don&amp;rsquo;t just make systems more efficient&amp;mdash;they make circular business models viable at scale.&lt;/p&gt;
&lt;p&gt;But none of this works without reimagining the products themselves. Circularity starts at the design table. When products are built to be repaired, upgraded, or disassembled, their useful life expands dramatically. Companies experimenting with leasing models or subscription services are discovering that keeping ownership of products gives them a financial reason to design for longevity. It&amp;rsquo;s a shift that benefits both customers and the planet.&lt;/p&gt;
&lt;p&gt;Infrastructure and skills also need to evolve. A circular economy depends on repair networks, remanufacturing facilities, and advanced recycling systems that can handle modern materials. It also requires a workforce trained in everything from product refurbishment to materials science. Cities and regions that invest in these capabilities position themselves as leaders in the next wave of sustainable industry.&lt;/p&gt;
&lt;p&gt;And then there&amp;rsquo;s the cultural piece. People are increasingly open to repairing instead of replacing, buying secondhand, and sharing rather than owning. When communities embrace these habits, they create momentum that businesses and policymakers can&amp;rsquo;t ignore. Consumer behavior becomes a signal that the market is ready for circular solutions.&lt;/p&gt;
&lt;p&gt;Accelerating the circular economy isn&amp;rsquo;t about one breakthrough or one policy. It&amp;rsquo;s about aligning technology, design, regulation, infrastructure, and culture so that circularity becomes the natural choice rather than the alternative. The potential benefits&amp;mdash;economic resilience, reduced environmental impact, and new opportunities for innovation&amp;mdash;are too significant to delay. The faster we move, the more we stand to gain.</description>
      <content:encoded>&lt;p&gt;&lt;/p&gt;
&lt;p&gt;The idea of a circular economy has been circulating for years, but the urgency behind it has never been sharper. As global demand for materials rises and waste volumes climb, the old linear model of producing, consuming, and discarding is hitting its limits. A circular approach&amp;mdash;where products are designed to last, materials are kept in circulation, and waste becomes a resource&amp;mdash;offers a path that&amp;rsquo;s both sustainable and economically promising. The challenge is no longer convincing people that circularity matters; it&amp;rsquo;s figuring out how to make it happen faster.&lt;/p&gt;
&lt;p&gt;Policy is one of the strongest accelerators. When governments set clear expectations&amp;mdash;whether through repair‑friendly regulations, incentives for recycled content, or accountability for end‑of‑life waste&amp;mdash;businesses respond. The most successful examples around the world show that when rules reward durability and penalize waste, innovation follows. Companies begin to rethink how they design products, how they source materials, and how they manage what happens after a product&amp;rsquo;s first life.&lt;/p&gt;
&lt;p&gt;Technology is another powerful catalyst. Digital tools are reshaping how materials move through the economy. Sensors can track the condition of equipment, allowing repairs before breakdowns. Data platforms can match one company&amp;rsquo;s waste with another&amp;rsquo;s raw material needs. Advanced analytics help manufacturers understand where resources are being lost and how to close those loops. These technologies don&amp;rsquo;t just make systems more efficient&amp;mdash;they make circular business models viable at scale.&lt;/p&gt;
&lt;p&gt;But none of this works without reimagining the products themselves. Circularity starts at the design table. When products are built to be repaired, upgraded, or disassembled, their useful life expands dramatically. Companies experimenting with leasing models or subscription services are discovering that keeping ownership of products gives them a financial reason to design for longevity. It&amp;rsquo;s a shift that benefits both customers and the planet.&lt;/p&gt;
&lt;p&gt;Infrastructure and skills also need to evolve. A circular economy depends on repair networks, remanufacturing facilities, and advanced recycling systems that can handle modern materials. It also requires a workforce trained in everything from product refurbishment to materials science. Cities and regions that invest in these capabilities position themselves as leaders in the next wave of sustainable industry.&lt;/p&gt;
&lt;p&gt;And then there&amp;rsquo;s the cultural piece. People are increasingly open to repairing instead of replacing, buying secondhand, and sharing rather than owning. When communities embrace these habits, they create momentum that businesses and policymakers can&amp;rsquo;t ignore. Consumer behavior becomes a signal that the market is ready for circular solutions.&lt;/p&gt;
&lt;p&gt;Accelerating the circular economy isn&amp;rsquo;t about one breakthrough or one policy. It&amp;rsquo;s about aligning technology, design, regulation, infrastructure, and culture so that circularity becomes the natural choice rather than the alternative. The potential benefits&amp;mdash;economic resilience, reduced environmental impact, and new opportunities for innovation&amp;mdash;are too significant to delay. The faster we move, the more we stand to gain.&lt;/p&gt;</content:encoded>
      <category>2026 Lane Reports</category>
      <pubDate>Mon, 11 May 2026 10:00:00 -0500</pubDate>
      <link>http://www.marcjlane.com/news/2026/05/11/2026-lane-reports/accelerating-the-circular-economy-why-speed-matters-now/</link>
    </item>
    <item>
      <guid isPermaLink="false">http://www.marcjlane.com/index.php?src=news&amp;refno=698&amp;category=Articles</guid>
      <title>The Roots That Outlive Us</title>
      <description>I&amp;rsquo;m excited to share that I&amp;rsquo;ve launched a new Substack, Capital &amp;amp; Conscience, where I&amp;rsquo;ll be posting more frequent writing on how to drive impact through innovation, law, capital, and policy.&lt;br /&gt; &lt;br /&gt;My latest piece explores evergreen companies: businesses built for long-term resilience, stewardship, and sustainable value creation rather than short-term extraction. The article examines how mission-driven companies can leverage their community-focused foundations to build organizations that endure across generations while continuing to drive innovation and growth. At a time when so many institutions are driven by short-term incentives, it&amp;rsquo;s increasingly important to consider how we build companies designed to last.&lt;br /&gt; &lt;br /&gt;You can read the article here, and I hope you&amp;rsquo;ll subscribe to Capital and Conscience to follow future articles and newsletters as the platform continues to grow.&lt;br /&gt; &lt;br /&gt;&lt;a href=&quot;https://marcjlane.substack.com/p/the-roots-that-outlive-us?r=5da9t&quot;&gt;https://marcjlane.substack.com/p/the-roots-that-outlive-us?r=5da9t&lt;/a&gt;</description>
      <content:encoded>&lt;p&gt;I&amp;rsquo;m excited to share that I&amp;rsquo;ve launched a new Substack, Capital &amp;amp; Conscience, where I&amp;rsquo;ll be posting more frequent writing on how to drive impact through innovation, law, capital, and policy.&lt;br /&gt; &lt;br /&gt;My latest piece explores evergreen companies: businesses built for long-term resilience, stewardship, and sustainable value creation rather than short-term extraction. The article examines how mission-driven companies can leverage their community-focused foundations to build organizations that endure across generations while continuing to drive innovation and growth. At a time when so many institutions are driven by short-term incentives, it&amp;rsquo;s increasingly important to consider how we build companies designed to last.&lt;br /&gt; &lt;br /&gt;You can read the article here, and I hope you&amp;rsquo;ll subscribe to Capital and Conscience to follow future articles and newsletters as the platform continues to grow.&lt;br /&gt; &lt;br /&gt;&lt;a href=&quot;https://marcjlane.substack.com/p/the-roots-that-outlive-us?r=5da9t&quot;&gt;https://marcjlane.substack.com/p/the-roots-that-outlive-us?r=5da9t&lt;/a&gt;&lt;/p&gt;</content:encoded>
      <category>Articles</category>
      <pubDate>Sun, 10 May 2026 09:00:00 -0500</pubDate>
      <link>http://www.marcjlane.com/news/2026/05/10/articles/the-roots-that-outlive-us/</link>
    </item>
    <item>
      <guid isPermaLink="false">http://www.marcjlane.com/index.php?src=news&amp;refno=697&amp;category=2026 Lane Reports</guid>
      <title>Rethinking Giving: The Rise of Regenerative Philanthropy</title>
      <description>For decades, philanthropy has been framed as a way to solve problems, a mechanism for directing resources toward the most urgent needs. But a growing movement is challenging that paradigm, arguing that traditional giving often reinforces the very systems that create inequity in the first place. Enter regenerative philanthropy, a mindset shift that&amp;rsquo;s gaining momentum among funders, nonprofits, and community leaders who want to do more than sustain the status quo.&lt;/p&gt;
&lt;p&gt;&lt;em&gt;Moving Beyond &amp;ldquo;Fixing&amp;rdquo; Toward &amp;ldquo;Growing&amp;rdquo;&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;At its core, regenerative philanthropy asks a simple but transformative question: What if giving could create more life, more capacity, and more resilience than it consumes? Instead of focusing solely on alleviating symptoms, regenerative approaches aim to strengthen the underlying social, cultural, and ecological systems that communities rely on.&lt;/p&gt;
&lt;p&gt;This shift is already visible in the field. The Kataly Foundation has become a leading voice in regenerative giving by providing long-term, unrestricted funding to grassroots organizations&amp;mdash;especially those led by Black, Indigenous, and other communities of color. Their approach centers community wisdom and invests in healing, land stewardship, and economic self-determination.&lt;/p&gt;
&lt;p&gt;&lt;em&gt;Power-Sharing as a Practice&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;One of the most radical aspects of regenerative philanthropy is its insistence on redistributing power, not just resources. Traditional philanthropy often places decision-making in the hands of donors, leaving communities to navigate rigid application processes and short-term funding cycles.&lt;/p&gt;
&lt;p&gt;Regenerative models flip that script. They prioritize:&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;Community-led decision-making&lt;/li&gt;
&lt;li&gt;Flexible, multi-year funding&lt;/li&gt;
&lt;li&gt;Trust-based relationships&lt;/li&gt;
&lt;li&gt;Co-creation instead of compliance&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;Take, for example, The Healy Foundation shifted from a conventional grantmaking model to a trust-based, regenerative approach. They now co-design grant strategies with nonprofit partners, reduce reporting burdens, and treat grantees as equal collaborators. This shift has strengthened relationships and improved long-term outcomes.&lt;/p&gt;
&lt;p&gt;&lt;em&gt;Place-Based Solutions With Deep Roots&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;Regeneration is inherently local. It recognizes that every community has its own history, culture, and assets &amp;mdash; and that meaningful change grows from the ground up.&lt;/p&gt;
&lt;p&gt;Take HiiiWAV, an Oakland-California- based Black arts and tech incubator, struggled for years to secure traditional funding despite deep community roots. Regenerative funders stepped in with flexible, multi-year support that allowed the organization to expand its programming, stabilize its operations, and deepen its cultural impact. This kind of place-based investment demonstrates how regenerative philanthropy can unlock potential that traditional models overlook.&lt;/p&gt;
&lt;p&gt;Or in rural Maine, the Wabanaki Alliance which has received regenerative-style funding to support Indigenous sovereignty, cultural revitalization, and land stewardship. These investments strengthen not just programs, but entire ecosystems of community resilience.&lt;/p&gt;
&lt;p&gt;&lt;em&gt;A Shift in Mindset, Not Just Method&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;What makes regenerative philanthropy powerful isn&amp;rsquo;t a new set of tools &amp;mdash; it&amp;rsquo;s a new worldview. It asks funders to embrace humility, curiosity, and a willingness to learn alongside the communities they support. It reframes philanthropy as a living system rather than a financial transaction. Most important,, it invites all of us to imagine a future where giving is not an act of charity, but an act of shared stewardship.&lt;/p&gt;
&lt;p&gt;&lt;em&gt;Why This Moment Matters&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;We&amp;rsquo;re living in a time of overlapping crises &amp;mdash; social, environmental, economic. Traditional philanthropy, for all its contributions, wasn&amp;rsquo;t designed to meet challenges of this scale. Regenerative philanthropy offers a path forward that is more relational, more adaptive, and more aligned with the complexity of the world we&amp;rsquo;re trying to change.&lt;/p&gt;
&lt;p&gt;It&amp;rsquo;s not just about funding projects. It&amp;rsquo;s about nurturing ecosystems.&lt;/p&gt;
&lt;p&gt;It&amp;rsquo;s not just about solving problems. It&amp;rsquo;s about growing possibilities.&lt;/p&gt;
&lt;p&gt;And it&amp;rsquo;s not just about giving back. It&amp;rsquo;s about giving in a way that creates more life than it takes.</description>
      <content:encoded>&lt;p&gt;For decades, philanthropy has been framed as a way to solve problems, a mechanism for directing resources toward the most urgent needs. But a growing movement is challenging that paradigm, arguing that traditional giving often reinforces the very systems that create inequity in the first place. Enter regenerative philanthropy, a mindset shift that&amp;rsquo;s gaining momentum among funders, nonprofits, and community leaders who want to do more than sustain the status quo.&lt;/p&gt;
&lt;p&gt;&lt;em&gt;Moving Beyond &amp;ldquo;Fixing&amp;rdquo; Toward &amp;ldquo;Growing&amp;rdquo;&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;At its core, regenerative philanthropy asks a simple but transformative question: What if giving could create more life, more capacity, and more resilience than it consumes? Instead of focusing solely on alleviating symptoms, regenerative approaches aim to strengthen the underlying social, cultural, and ecological systems that communities rely on.&lt;/p&gt;
&lt;p&gt;This shift is already visible in the field. The Kataly Foundation has become a leading voice in regenerative giving by providing long-term, unrestricted funding to grassroots organizations&amp;mdash;especially those led by Black, Indigenous, and other communities of color. Their approach centers community wisdom and invests in healing, land stewardship, and economic self-determination.&lt;/p&gt;
&lt;p&gt;&lt;em&gt;Power-Sharing as a Practice&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;One of the most radical aspects of regenerative philanthropy is its insistence on redistributing power, not just resources. Traditional philanthropy often places decision-making in the hands of donors, leaving communities to navigate rigid application processes and short-term funding cycles.&lt;/p&gt;
&lt;p&gt;Regenerative models flip that script. They prioritize:&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;Community-led decision-making&lt;/li&gt;
&lt;li&gt;Flexible, multi-year funding&lt;/li&gt;
&lt;li&gt;Trust-based relationships&lt;/li&gt;
&lt;li&gt;Co-creation instead of compliance&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;Take, for example, The Healy Foundation shifted from a conventional grantmaking model to a trust-based, regenerative approach. They now co-design grant strategies with nonprofit partners, reduce reporting burdens, and treat grantees as equal collaborators. This shift has strengthened relationships and improved long-term outcomes.&lt;/p&gt;
&lt;p&gt;&lt;em&gt;Place-Based Solutions With Deep Roots&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;Regeneration is inherently local. It recognizes that every community has its own history, culture, and assets &amp;mdash; and that meaningful change grows from the ground up.&lt;/p&gt;
&lt;p&gt;Take HiiiWAV, an Oakland-California- based Black arts and tech incubator, struggled for years to secure traditional funding despite deep community roots. Regenerative funders stepped in with flexible, multi-year support that allowed the organization to expand its programming, stabilize its operations, and deepen its cultural impact. This kind of place-based investment demonstrates how regenerative philanthropy can unlock potential that traditional models overlook.&lt;/p&gt;
&lt;p&gt;Or in rural Maine, the Wabanaki Alliance which has received regenerative-style funding to support Indigenous sovereignty, cultural revitalization, and land stewardship. These investments strengthen not just programs, but entire ecosystems of community resilience.&lt;/p&gt;
&lt;p&gt;&lt;em&gt;A Shift in Mindset, Not Just Method&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;What makes regenerative philanthropy powerful isn&amp;rsquo;t a new set of tools &amp;mdash; it&amp;rsquo;s a new worldview. It asks funders to embrace humility, curiosity, and a willingness to learn alongside the communities they support. It reframes philanthropy as a living system rather than a financial transaction. Most important,, it invites all of us to imagine a future where giving is not an act of charity, but an act of shared stewardship.&lt;/p&gt;
&lt;p&gt;&lt;em&gt;Why This Moment Matters&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;We&amp;rsquo;re living in a time of overlapping crises &amp;mdash; social, environmental, economic. Traditional philanthropy, for all its contributions, wasn&amp;rsquo;t designed to meet challenges of this scale. Regenerative philanthropy offers a path forward that is more relational, more adaptive, and more aligned with the complexity of the world we&amp;rsquo;re trying to change.&lt;/p&gt;
&lt;p&gt;It&amp;rsquo;s not just about funding projects. It&amp;rsquo;s about nurturing ecosystems.&lt;/p&gt;
&lt;p&gt;It&amp;rsquo;s not just about solving problems. It&amp;rsquo;s about growing possibilities.&lt;/p&gt;
&lt;p&gt;And it&amp;rsquo;s not just about giving back. It&amp;rsquo;s about giving in a way that creates more life than it takes.&lt;/p&gt;</content:encoded>
      <category>2026 Lane Reports</category>
      <pubDate>Fri, 10 Apr 2026 10:00:00 -0500</pubDate>
      <link>http://www.marcjlane.com/news/2026/04/10/2026-lane-reports/rethinking-giving-the-rise-of-regenerative-philanthropy/</link>
    </item>
    <item>
      <guid isPermaLink="false">http://www.marcjlane.com/index.php?src=news&amp;refno=696&amp;category=In the News</guid>
      <title>The State of the Union Needs YOU</title>
      <description>Everyone matters in a democracy.&lt;/p&gt;
&lt;p&gt;Everyone.&lt;/p&gt;
&lt;p&gt;We all have an important role to play, always. Lawyers especially, but everyone.&lt;/p&gt;
&lt;p&gt;This week&amp;rsquo;s State of the Union is cause for a pause to reflect on the role we all play.&lt;/p&gt;
&lt;p&gt;Always, and especially now.&lt;/p&gt;
&lt;p&gt;Let&amp;rsquo;s do (more) good (better)&amp;mdash;united&amp;mdash;together.&lt;/p&gt;
&lt;h3&gt;A Good Quote&lt;/h3&gt;
&lt;p&gt;&lt;strong&gt;&amp;ldquo;Democracy is not a spectator sport&amp;rdquo;&lt;/strong&gt; &amp;mdash;Marian Wright Edelman&lt;/p&gt;
&lt;h3&gt;A Good Note&lt;/h3&gt;
&lt;p&gt;&lt;strong&gt;What you can do. Right now.&lt;/strong&gt;&lt;br /&gt;It often feels like there isn&amp;rsquo;t much we can do when the world feels chaotic.&lt;/p&gt;
&lt;p&gt;Confusion and overwhelm create a chilling effect. Too many issues create analysis paralysis.&lt;/p&gt;
&lt;p&gt;That&amp;rsquo;s exactly when taking action matters most.&lt;/p&gt;
&lt;p&gt;The antidote is taking the next step that matters to you.&lt;/p&gt;
&lt;p&gt;In my podcast episode with &lt;a href=&quot;https://www.linkedin.com/in/skyeperryman?trk=article-ssr-frontend-pulse_little-mention&quot;&gt;Skye Perryman (she/her)&lt;/a&gt; of &lt;a href=&quot;https://www.linkedin.com/company/democracyfwd?trk=article-ssr-frontend-pulse_little-mention&quot;&gt;Democracy Forward&lt;/a&gt; &amp;mdash;one of the most consequential organizations working to protect democracy for everyone&amp;mdash;she offers two clear, specific calls to action.&lt;/p&gt;
&lt;p&gt;First, for everyone&amp;mdash;no matter who you are or what you do.&lt;/p&gt;
&lt;p&gt;Watch that clip here:&lt;/p&gt;
&lt;p&gt;&lt;iframe src=&quot;https://www.youtube.com/embed/Ntg0WMdpLNI?si=Qam19-ZseJW1aAbw&amp;amp;start=1573&quot; width=&quot;560&quot; height=&quot;315&quot; frameborder=&quot;0&quot; allowfullscreen=&quot;&quot;&gt;&lt;/iframe&gt; &lt;br /&gt;Second, specifically for lawyers who may be struggling to understand what they can do if they&amp;rsquo;re not a constitutional, immigration, or civil rights lawyer, or a litigator.&lt;/p&gt;
&lt;p&gt;I understand this struggle. The desire to do something but not knowing what your expertise has to do with &amp;ldquo;the moment.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Here&amp;rsquo;s Skye&amp;rsquo;s answer (and it&amp;rsquo;s simpler than you think):&lt;/p&gt;
&lt;p&gt;&lt;iframe src=&quot;https://www.youtube.com/embed/Ntg0WMdpLNI?si=sPJZsHcVgiI-wypx&amp;amp;start=1900&quot; width=&quot;560&quot; height=&quot;315&quot; frameborder=&quot;0&quot; allowfullscreen=&quot;&quot;&gt;&lt;/iframe&gt; &lt;br /&gt;No matter who you are, where you are, or what you do, you matter. You have a role to play in this democracy.&lt;/p&gt;
&lt;p&gt;&lt;br /&gt;And yes, the next right step can be as simple as tuning into a podcast episode to learn more. Sometimes the simplest next step is the best one.&lt;/p&gt;
&lt;p&gt;Remember: momentum begets momentum. Often taking action reveals clarity for the path ahead. So start simple. But start.&lt;/p&gt;
&lt;p&gt;If this resonates, start by giving this important episode a listen.&lt;/p&gt;
&lt;p&gt;Take your next step from there.&lt;/p&gt;
&lt;h3&gt;A Good Example&lt;/h3&gt;
&lt;p&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/news/20260304/1772211964787.jpeg&quot; width=&quot;650&quot; height=&quot;488&quot; /&gt;&lt;br /&gt;&lt;a href=&quot;https://www.linkedin.com/in/marcjlane?trk=article-ssr-frontend-pulse_little-mention&quot;&gt;Marc J. Lane&lt;/a&gt; - &lt;strong&gt;The OG of Social Enterprise Law&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;Marc isn&amp;rsquo;t arguing in front of the Supreme Court or organizing marches. But he&amp;rsquo;s still part of the work to strengthen our union.&lt;/p&gt;
&lt;p&gt;Don&amp;rsquo;t get me wrong, I believe Marc cares deeply about democracy and civic engagement. But like many lawyers, his practice is where his impact lies.&lt;/p&gt;
&lt;p&gt;He&amp;rsquo;s one of the early pioneers of Social Impact Law. He literally wrote the book on social enterprises (&lt;em&gt;The Mission Driven Venture&lt;/em&gt;). It&amp;rsquo;s one of the two required texts for&lt;a href=&quot;https://www.linkedin.com/posts/scottmcurran_lawschool-socialimpactlaw-nonprofits-activity-7422351922285793281-O728?utm_source=share&amp;amp;utm_medium=member_desktop&amp;amp;rcm=ACoAAACkMEoBPxz4k4gSvdzrIeEUsbCcZvyOH1U&amp;amp;trk=article-ssr-frontend-pulse_little-text-block&quot;&gt; the law school class I teach&lt;/a&gt; at my alma mater, Chicago-Kent College of Law.&lt;/p&gt;
&lt;p&gt;That&amp;rsquo;s actually me (in the picture above) sitting in the front row listening to Marc during his guest lecture in my class this week.&lt;/p&gt;
&lt;p&gt;Marc is a smart and inspiring lawyer who works every day to help social enterprise deliver value across industries, sectors, and the world.&lt;/p&gt;
&lt;p&gt;I&amp;rsquo;m grateful to Marc for sharing his insights with the next generation of social impact lawyers who will contribute to strengthening the state of the union.&lt;/p&gt;
&lt;p&gt;You can see more about Marc&amp;rsquo;s guest lecture on &lt;a href=&quot;https://www.linkedin.com/posts/scottmcurran_socialimpactlaw-socialenterprise-lawschool-activity-7432538218346225664-Yc_r?utm_source=share&amp;amp;utm_medium=member_desktop&amp;amp;rcm=ACoAAACkMEoBPxz4k4gSvdzrIeEUsbCcZvyOH1U&amp;amp;trk=article-ssr-frontend-pulse_little-text-block&quot;&gt;my LikedIn post here&lt;/a&gt;.&lt;/p&gt;
&lt;h3&gt;A Good Recommendation&lt;/h3&gt;
&lt;p&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/news/20260304/1772213626967.png&quot; width=&quot;651&quot; height=&quot;366&quot; /&gt;&lt;/p&gt;
&lt;p&gt;&lt;br /&gt;&lt;strong&gt;Take this next right step.&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;If you haven&amp;rsquo;t yet listened to (or watched) Skye&amp;rsquo;s episode, give it a whirl. You can watch &lt;a href=&quot;http://www.youtube.com/scottmcurran?trk=article-ssr-frontend-pulse_little-text-block&quot;&gt;on YouTube&lt;/a&gt; via the link above, listen or watch &lt;a href=&quot;https://www.linkedin.com/redir/redirect?url=https%3A%2F%2Fopen%2Espotify%2Ecom%2Fepisode%2F15eV0N2jXQFjYVVEF6Y4qY%3Fsi%3DmWJpupFXSdCE23-J12HCmw&amp;amp;urlhash=E696&amp;amp;trk=article-ssr-frontend-pulse_little-text-block&quot;&gt;on Spotify&lt;/a&gt;, or listen on &lt;a href=&quot;https://www.linkedin.com/redir/redirect?url=https%3A%2F%2Fpodcasts%2Eapple%2Ecom%2Fgb%2Fpodcast%2Fbetter-good-with-scott-m-curran%2Fid1867499936&amp;amp;urlhash=_aag&amp;amp;trk=article-ssr-frontend-pulse_little-text-block&quot;&gt;Apple Podcasts&lt;/a&gt;. This &amp;ldquo;moment&amp;rdquo; is a persistent one. It&amp;rsquo;s not ending anytime soon. And so taking inspiration, motivation, and action after listening to Skye&amp;rsquo;s words of wisdom (and there are many) is a great next right step.&lt;/p&gt;
&lt;p&gt;I&amp;rsquo;d love to hear what you think of this important episode!&lt;/p&gt;
&lt;h3&gt;Share the Good!&lt;/h3&gt;
&lt;p&gt;Share this with someone you know who cares about democracy.&lt;/p&gt;
&lt;p&gt;Originally published at&amp;nbsp;&lt;a href=&quot;https://www.linkedin.com/pulse/state-union-needs-you-scott-m-curran-cc1hc/&quot;&gt;https://www.linkedin.com/pulse/state-union-needs-you-scott-m-curran-cc1hc/&lt;/a&gt;</description>
      <content:encoded>&lt;p&gt;Everyone matters in a democracy.&lt;/p&gt;
&lt;p&gt;Everyone.&lt;/p&gt;
&lt;p&gt;We all have an important role to play, always. Lawyers especially, but everyone.&lt;/p&gt;
&lt;p&gt;This week&amp;rsquo;s State of the Union is cause for a pause to reflect on the role we all play.&lt;/p&gt;
&lt;p&gt;Always, and especially now.&lt;/p&gt;
&lt;p&gt;Let&amp;rsquo;s do (more) good (better)&amp;mdash;united&amp;mdash;together.&lt;/p&gt;
&lt;h3&gt;A Good Quote&lt;/h3&gt;
&lt;p&gt;&lt;strong&gt;&amp;ldquo;Democracy is not a spectator sport&amp;rdquo;&lt;/strong&gt; &amp;mdash;Marian Wright Edelman&lt;/p&gt;
&lt;h3&gt;A Good Note&lt;/h3&gt;
&lt;p&gt;&lt;strong&gt;What you can do. Right now.&lt;/strong&gt;&lt;br /&gt;It often feels like there isn&amp;rsquo;t much we can do when the world feels chaotic.&lt;/p&gt;
&lt;p&gt;Confusion and overwhelm create a chilling effect. Too many issues create analysis paralysis.&lt;/p&gt;
&lt;p&gt;That&amp;rsquo;s exactly when taking action matters most.&lt;/p&gt;
&lt;p&gt;The antidote is taking the next step that matters to you.&lt;/p&gt;
&lt;p&gt;In my podcast episode with &lt;a href=&quot;https://www.linkedin.com/in/skyeperryman?trk=article-ssr-frontend-pulse_little-mention&quot;&gt;Skye Perryman (she/her)&lt;/a&gt; of &lt;a href=&quot;https://www.linkedin.com/company/democracyfwd?trk=article-ssr-frontend-pulse_little-mention&quot;&gt;Democracy Forward&lt;/a&gt; &amp;mdash;one of the most consequential organizations working to protect democracy for everyone&amp;mdash;she offers two clear, specific calls to action.&lt;/p&gt;
&lt;p&gt;First, for everyone&amp;mdash;no matter who you are or what you do.&lt;/p&gt;
&lt;p&gt;Watch that clip here:&lt;/p&gt;
&lt;p&gt;&lt;iframe src=&quot;https://www.youtube.com/embed/Ntg0WMdpLNI?si=Qam19-ZseJW1aAbw&amp;amp;start=1573&quot; width=&quot;560&quot; height=&quot;315&quot; frameborder=&quot;0&quot; allowfullscreen=&quot;&quot;&gt;&lt;/iframe&gt; &lt;br /&gt;Second, specifically for lawyers who may be struggling to understand what they can do if they&amp;rsquo;re not a constitutional, immigration, or civil rights lawyer, or a litigator.&lt;/p&gt;
&lt;p&gt;I understand this struggle. The desire to do something but not knowing what your expertise has to do with &amp;ldquo;the moment.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Here&amp;rsquo;s Skye&amp;rsquo;s answer (and it&amp;rsquo;s simpler than you think):&lt;/p&gt;
&lt;p&gt;&lt;iframe src=&quot;https://www.youtube.com/embed/Ntg0WMdpLNI?si=sPJZsHcVgiI-wypx&amp;amp;start=1900&quot; width=&quot;560&quot; height=&quot;315&quot; frameborder=&quot;0&quot; allowfullscreen=&quot;&quot;&gt;&lt;/iframe&gt; &lt;br /&gt;No matter who you are, where you are, or what you do, you matter. You have a role to play in this democracy.&lt;/p&gt;
&lt;p&gt;&lt;br /&gt;And yes, the next right step can be as simple as tuning into a podcast episode to learn more. Sometimes the simplest next step is the best one.&lt;/p&gt;
&lt;p&gt;Remember: momentum begets momentum. Often taking action reveals clarity for the path ahead. So start simple. But start.&lt;/p&gt;
&lt;p&gt;If this resonates, start by giving this important episode a listen.&lt;/p&gt;
&lt;p&gt;Take your next step from there.&lt;/p&gt;
&lt;h3&gt;A Good Example&lt;/h3&gt;
&lt;p&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/news/20260304/1772211964787.jpeg&quot; width=&quot;650&quot; height=&quot;488&quot; /&gt;&lt;br /&gt;&lt;a href=&quot;https://www.linkedin.com/in/marcjlane?trk=article-ssr-frontend-pulse_little-mention&quot;&gt;Marc J. Lane&lt;/a&gt; - &lt;strong&gt;The OG of Social Enterprise Law&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;Marc isn&amp;rsquo;t arguing in front of the Supreme Court or organizing marches. But he&amp;rsquo;s still part of the work to strengthen our union.&lt;/p&gt;
&lt;p&gt;Don&amp;rsquo;t get me wrong, I believe Marc cares deeply about democracy and civic engagement. But like many lawyers, his practice is where his impact lies.&lt;/p&gt;
&lt;p&gt;He&amp;rsquo;s one of the early pioneers of Social Impact Law. He literally wrote the book on social enterprises (&lt;em&gt;The Mission Driven Venture&lt;/em&gt;). It&amp;rsquo;s one of the two required texts for&lt;a href=&quot;https://www.linkedin.com/posts/scottmcurran_lawschool-socialimpactlaw-nonprofits-activity-7422351922285793281-O728?utm_source=share&amp;amp;utm_medium=member_desktop&amp;amp;rcm=ACoAAACkMEoBPxz4k4gSvdzrIeEUsbCcZvyOH1U&amp;amp;trk=article-ssr-frontend-pulse_little-text-block&quot;&gt; the law school class I teach&lt;/a&gt; at my alma mater, Chicago-Kent College of Law.&lt;/p&gt;
&lt;p&gt;That&amp;rsquo;s actually me (in the picture above) sitting in the front row listening to Marc during his guest lecture in my class this week.&lt;/p&gt;
&lt;p&gt;Marc is a smart and inspiring lawyer who works every day to help social enterprise deliver value across industries, sectors, and the world.&lt;/p&gt;
&lt;p&gt;I&amp;rsquo;m grateful to Marc for sharing his insights with the next generation of social impact lawyers who will contribute to strengthening the state of the union.&lt;/p&gt;
&lt;p&gt;You can see more about Marc&amp;rsquo;s guest lecture on &lt;a href=&quot;https://www.linkedin.com/posts/scottmcurran_socialimpactlaw-socialenterprise-lawschool-activity-7432538218346225664-Yc_r?utm_source=share&amp;amp;utm_medium=member_desktop&amp;amp;rcm=ACoAAACkMEoBPxz4k4gSvdzrIeEUsbCcZvyOH1U&amp;amp;trk=article-ssr-frontend-pulse_little-text-block&quot;&gt;my LikedIn post here&lt;/a&gt;.&lt;/p&gt;
&lt;h3&gt;A Good Recommendation&lt;/h3&gt;
&lt;p&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/news/20260304/1772213626967.png&quot; width=&quot;651&quot; height=&quot;366&quot; /&gt;&lt;/p&gt;
&lt;p&gt;&lt;br /&gt;&lt;strong&gt;Take this next right step.&lt;/strong&gt;&lt;/p&gt;
&lt;p&gt;If you haven&amp;rsquo;t yet listened to (or watched) Skye&amp;rsquo;s episode, give it a whirl. You can watch &lt;a href=&quot;http://www.youtube.com/scottmcurran?trk=article-ssr-frontend-pulse_little-text-block&quot;&gt;on YouTube&lt;/a&gt; via the link above, listen or watch &lt;a href=&quot;https://www.linkedin.com/redir/redirect?url=https%3A%2F%2Fopen%2Espotify%2Ecom%2Fepisode%2F15eV0N2jXQFjYVVEF6Y4qY%3Fsi%3DmWJpupFXSdCE23-J12HCmw&amp;amp;urlhash=E696&amp;amp;trk=article-ssr-frontend-pulse_little-text-block&quot;&gt;on Spotify&lt;/a&gt;, or listen on &lt;a href=&quot;https://www.linkedin.com/redir/redirect?url=https%3A%2F%2Fpodcasts%2Eapple%2Ecom%2Fgb%2Fpodcast%2Fbetter-good-with-scott-m-curran%2Fid1867499936&amp;amp;urlhash=_aag&amp;amp;trk=article-ssr-frontend-pulse_little-text-block&quot;&gt;Apple Podcasts&lt;/a&gt;. This &amp;ldquo;moment&amp;rdquo; is a persistent one. It&amp;rsquo;s not ending anytime soon. And so taking inspiration, motivation, and action after listening to Skye&amp;rsquo;s words of wisdom (and there are many) is a great next right step.&lt;/p&gt;
&lt;p&gt;I&amp;rsquo;d love to hear what you think of this important episode!&lt;/p&gt;
&lt;h3&gt;Share the Good!&lt;/h3&gt;
&lt;p&gt;Share this with someone you know who cares about democracy.&lt;/p&gt;
&lt;p&gt;Originally published at&amp;nbsp;&lt;a href=&quot;https://www.linkedin.com/pulse/state-union-needs-you-scott-m-curran-cc1hc/&quot;&gt;https://www.linkedin.com/pulse/state-union-needs-you-scott-m-curran-cc1hc/&lt;/a&gt;&lt;/p&gt;</content:encoded>
      <category>In the News</category>
      <pubDate>Wed, 04 Mar 2026 00:00:00 -0600</pubDate>
      <link>http://www.marcjlane.com/news/2026/03/04/in-the-news/the-state-of-the-union-needs-you/</link>
    </item>
    <item>
      <guid isPermaLink="false">http://www.marcjlane.com/index.php?src=news&amp;refno=695&amp;category=2026 Lane Reports</guid>
      <title>Illinois Offers Relief to Charities Facing Declining Donations</title>
      <description>&lt;/p&gt;
&lt;p&gt;Charitable giving in Illinois has been declining in recent years, driven by economic uncertainty, donor skepticism and broader national trends. Among those trends, high inflation has reduced donors&amp;rsquo; disposable income. As a result, nearly 74% of Illinois nonprofits report job vacancies, and many have longer waitlisted for services. Inevitably. staffing shortages limit nonprofits&amp;rsquo; outreach capacity, which can further depress giving.&lt;/p&gt;
&lt;p&gt;But Illinois is doing something about the problem. The Illinois Gives Tax Credit Program offers a 25 percent income tax credit to individuals and businesses that contribute to permanent endowed funds held by Qualified Community Foundations (QCFs) which themselves are exempt from tax under Section 501(c)(3) of the Internal Revenue Code.&lt;/p&gt;
&lt;p&gt;A permanent endowment is a fund which is kept in perpetuity, with only its earnings providing regular operating support and funding for charitable projects. Other than investing, the holding foundation may not use any of the money from the initial donations. Instead, the foundation are to use the earnings it receives from the investment of the initial donation to support its projects and operations.&lt;/p&gt;
&lt;p&gt;To qualify for the Illinois Gives Tax Credit Program, the permanent endowment funds must:&amp;nbsp;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;provide charitable grants exclusively for the benefit of residents of Illinois or charities and charitable projects located in Illinois,&lt;/li&gt;
&lt;li&gt;exist in perpetuity,&lt;/li&gt;
&lt;li&gt;have an annual spending rate based on the foundation&amp;rsquo;s spending policy (not to exceed 7%), and&lt;/li&gt;
&lt;li&gt;not be a donor-advised fund.&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;The Illinois Department of Revenue can issue up to $5 million in tax credits per calendar year (25% of the $20 million maximum donation amount). IDOR can issue up to $100,000 in tax credits per taxpayer per calendar year (25% of the $400,000 maximum donation amount made by a single taxpayer eligible for credits under the program); and up to $750,000 in tax credits per calendar year (25% of the $3 million maximum donation amount made to a single QCF eligible for credits under the program) as a result of contributions made to a single QCF.</description>
      <content:encoded>&lt;p&gt;&lt;/p&gt;
&lt;p&gt;Charitable giving in Illinois has been declining in recent years, driven by economic uncertainty, donor skepticism and broader national trends. Among those trends, high inflation has reduced donors&amp;rsquo; disposable income. As a result, nearly 74% of Illinois nonprofits report job vacancies, and many have longer waitlisted for services. Inevitably. staffing shortages limit nonprofits&amp;rsquo; outreach capacity, which can further depress giving.&lt;/p&gt;
&lt;p&gt;But Illinois is doing something about the problem. The Illinois Gives Tax Credit Program offers a 25 percent income tax credit to individuals and businesses that contribute to permanent endowed funds held by Qualified Community Foundations (QCFs) which themselves are exempt from tax under Section 501(c)(3) of the Internal Revenue Code.&lt;/p&gt;
&lt;p&gt;A permanent endowment is a fund which is kept in perpetuity, with only its earnings providing regular operating support and funding for charitable projects. Other than investing, the holding foundation may not use any of the money from the initial donations. Instead, the foundation are to use the earnings it receives from the investment of the initial donation to support its projects and operations.&lt;/p&gt;
&lt;p&gt;To qualify for the Illinois Gives Tax Credit Program, the permanent endowment funds must:&amp;nbsp;&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;provide charitable grants exclusively for the benefit of residents of Illinois or charities and charitable projects located in Illinois,&lt;/li&gt;
&lt;li&gt;exist in perpetuity,&lt;/li&gt;
&lt;li&gt;have an annual spending rate based on the foundation&amp;rsquo;s spending policy (not to exceed 7%), and&lt;/li&gt;
&lt;li&gt;not be a donor-advised fund.&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;The Illinois Department of Revenue can issue up to $5 million in tax credits per calendar year (25% of the $20 million maximum donation amount). IDOR can issue up to $100,000 in tax credits per taxpayer per calendar year (25% of the $400,000 maximum donation amount made by a single taxpayer eligible for credits under the program); and up to $750,000 in tax credits per calendar year (25% of the $3 million maximum donation amount made to a single QCF eligible for credits under the program) as a result of contributions made to a single QCF.&lt;/p&gt;</content:encoded>
      <category>2026 Lane Reports</category>
      <pubDate>Mon, 02 Mar 2026 10:00:00 -0600</pubDate>
      <link>http://www.marcjlane.com/news/2026/03/02/2026-lane-reports/illinois-offers-relief-to-charities-facing-declining-donations/</link>
    </item>
    <item>
      <guid isPermaLink="false">http://www.marcjlane.com/index.php?src=news&amp;refno=694&amp;category=2026 Lane Reports</guid>
      <title>MIGHT TAX-DAY CHARITABLE DEDUCTIONS BE IN OUR FUTURE?</title>
      <description>&lt;/p&gt;
&lt;p&gt;The impact of last year&amp;rsquo;s One Big Beautiful Bill Act on charitable tax deductions, particularly for high-income donors, has prompted scholars and policymakers alike to rethink the incentives around charitable giving.&lt;/p&gt;
&lt;p&gt;Starting this year, only charitable gifts exceeding 0.5% of a taxpayer&amp;rsquo;s Adjusted Gross Income (AGI) will be deductible, so if one&amp;rsquo;s AGI is $200,000, the first $1,000 of charitable gifts will not be deductible. And donors in the 37% federal tax bracket will see their deductions capped at 35% of their gifts&amp;rsquo; value, so a $100,000 deduction could be reduced by up to $5,405.&lt;/p&gt;
&lt;p&gt;The truth is, taxpayers don&amp;rsquo;t know what their AGI will be this year, let alone what 0.5% of it will be. But what if they could make this year&amp;rsquo;s charitable gifts anytime through April 15, 2027, when they would know exactly how much tax relief their donations would buy them?&lt;/p&gt;
&lt;p&gt;Behavioral psychologists tell us that empowering the taxpayer to decide how much to donate to charity during tax time -- when she knows how much of a federal subsidy her gift would trigger -- should incentivize greater charitable support.&lt;/p&gt;
&lt;p&gt;The .05% floor will also encourage some taxpayers to &amp;ldquo;bunch&amp;rdquo; their charitable giving into tax years when it will do them the most good, a strategy easier to implement if they were to have until Tax Day to finalize their giving decisions. Tax-Day charitable deductions should also reduce the volatility in revenue charities would likely experience if bunching catches on, as it probably will.&lt;/p&gt;
&lt;p&gt;The Tax-Day charitable deduction is a donor-centric, pro-charity proposal with positive societal implications. It would nudge pro-social behavior at the very moment prospective donors are most receptive. It would improve the efficiency of charitable incentives. And it would strengthen civil society infrastructure.&lt;/p&gt;
&lt;p&gt;Still, with Congress fractured as never before, legislative action is unlikely anytime soon. But it&amp;rsquo;s not too soon for those who see merit in allowing taxpayers to make and deduct charitable donations up until Tax Day to start mobilizing public support. Their efforts today can improve the odds that a future Congress will take seriously the potential of revising our tax code in order to help taxpayers render better financial decisions, to reduce volatility in nonprofit budgets, and to make the public costs and benefits of charitable donations more transparent.&lt;/p&gt;
&lt;p&gt;The donor community, the social sector and the rest of us deserve no less.&lt;/p&gt;
&lt;p&gt;&lt;em&gt;To explore sophisticated tax-savings opportunities available to you and your business, please feel free to reach out to Marc Lane in confidence at &lt;a href=&quot;mailto:MLane@MarcJLane.com&quot;&gt;MLane@MarcJLane.com&lt;/a&gt; or 312/800-372-1040.&lt;/em&gt;</description>
      <content:encoded>&lt;p&gt;&lt;/p&gt;
&lt;p&gt;The impact of last year&amp;rsquo;s One Big Beautiful Bill Act on charitable tax deductions, particularly for high-income donors, has prompted scholars and policymakers alike to rethink the incentives around charitable giving.&lt;/p&gt;
&lt;p&gt;Starting this year, only charitable gifts exceeding 0.5% of a taxpayer&amp;rsquo;s Adjusted Gross Income (AGI) will be deductible, so if one&amp;rsquo;s AGI is $200,000, the first $1,000 of charitable gifts will not be deductible. And donors in the 37% federal tax bracket will see their deductions capped at 35% of their gifts&amp;rsquo; value, so a $100,000 deduction could be reduced by up to $5,405.&lt;/p&gt;
&lt;p&gt;The truth is, taxpayers don&amp;rsquo;t know what their AGI will be this year, let alone what 0.5% of it will be. But what if they could make this year&amp;rsquo;s charitable gifts anytime through April 15, 2027, when they would know exactly how much tax relief their donations would buy them?&lt;/p&gt;
&lt;p&gt;Behavioral psychologists tell us that empowering the taxpayer to decide how much to donate to charity during tax time -- when she knows how much of a federal subsidy her gift would trigger -- should incentivize greater charitable support.&lt;/p&gt;
&lt;p&gt;The .05% floor will also encourage some taxpayers to &amp;ldquo;bunch&amp;rdquo; their charitable giving into tax years when it will do them the most good, a strategy easier to implement if they were to have until Tax Day to finalize their giving decisions. Tax-Day charitable deductions should also reduce the volatility in revenue charities would likely experience if bunching catches on, as it probably will.&lt;/p&gt;
&lt;p&gt;The Tax-Day charitable deduction is a donor-centric, pro-charity proposal with positive societal implications. It would nudge pro-social behavior at the very moment prospective donors are most receptive. It would improve the efficiency of charitable incentives. And it would strengthen civil society infrastructure.&lt;/p&gt;
&lt;p&gt;Still, with Congress fractured as never before, legislative action is unlikely anytime soon. But it&amp;rsquo;s not too soon for those who see merit in allowing taxpayers to make and deduct charitable donations up until Tax Day to start mobilizing public support. Their efforts today can improve the odds that a future Congress will take seriously the potential of revising our tax code in order to help taxpayers render better financial decisions, to reduce volatility in nonprofit budgets, and to make the public costs and benefits of charitable donations more transparent.&lt;/p&gt;
&lt;p&gt;The donor community, the social sector and the rest of us deserve no less.&lt;/p&gt;
&lt;p&gt;&lt;em&gt;To explore sophisticated tax-savings opportunities available to you and your business, please feel free to reach out to Marc Lane in confidence at &lt;a href=&quot;mailto:MLane@MarcJLane.com&quot;&gt;MLane@MarcJLane.com&lt;/a&gt; or 312/800-372-1040.&lt;/em&gt;&lt;/p&gt;</content:encoded>
      <category>2026 Lane Reports</category>
      <pubDate>Tue, 03 Feb 2026 10:00:00 -0600</pubDate>
      <link>http://www.marcjlane.com/news/2026/02/03/2026-lane-reports/might-tax-day-charitable-deductions-be-in-our-future/</link>
    </item>
    <item>
      <guid isPermaLink="false">http://www.marcjlane.com/index.php?src=news&amp;refno=692&amp;category=2026 Lane Reports</guid>
      <title>Ex-Aurora Mayor Backed $450K Line of Credit Without Council Approval; Nonprofit Leader Racked Up Charges at ATMs and Strip Clubs</title>
      <description>&amp;nbsp;&lt;/p&gt;
&lt;h4 style=&quot;font-weight: 400;&quot;&gt;Entrepreneurial nonprofits and for-profit social enterprises alike are embracing the opportunities the Low-profit Limited Liability Company (L3C) offers. &amp;nbsp;It can facilitate impact investments, optimize tax efficiency, and attract mission-aligned stakeholders. But what the L3C can&amp;rsquo;t do is help its managers dodge their fiduciary responsibilities. &amp;nbsp;&amp;nbsp;&lt;/h4&gt;
&lt;hr /&gt;
&lt;h3 class=&quot;article-title&quot;&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/wttw-logo-blk.png&quot; width=&quot;311&quot; height=&quot;81&quot; /&gt;&lt;/h3&gt;
&lt;h3 class=&quot;article-title&quot;&gt;Ex-Aurora Mayor Backed $450K Line of Credit Without Council Approval; Nonprofit Leader Racked Up Charges at ATMs and Strip Clubs&lt;/h3&gt;
&lt;h4 class=&quot;sub-headline&quot;&gt;Documents obtained by WTTW News shine light on finances.&lt;/h4&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/iStock-801244748.jpg&quot; width=&quot;630&quot; height=&quot;354&quot; /&gt;&lt;/p&gt;
&lt;div class=&quot;image-container&quot; style=&quot;text-align: left;&quot;&gt;&lt;span style=&quot;font-size: 10pt; color: #808080;&quot;&gt;&lt;em&gt;&lt;span class=&quot;image-full standalone-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;Downtown Aurora is pictured in a file photo. (Denis Tangney Jr. / iStock)&lt;/span&gt;&lt;/span&gt;&lt;/em&gt;&lt;/span&gt;&lt;/div&gt;
&lt;p&gt;OnLight Aurora, a city-supported nonprofit, aims to provide high speed internet to the west suburban community&amp;rsquo;s institutions, businesses and residents.&lt;/p&gt;
&lt;p&gt;It&amp;rsquo;s also in massive debt, with a long history of questionable expenditures.&lt;/p&gt;
&lt;p&gt;The nonprofit, according to an analysis by local officials and documents reviewed by WTTW News, is nearly $1 million in the red, operating at a $27,000 monthly deficit with some $20,000 in monthly debt service payments.&lt;/p&gt;
&lt;p&gt;Then there&amp;rsquo;s the debit card receipts.&amp;nbsp;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Those charges include tens of thousands of dollars in ATM cash withdrawals, additional thousands spent at strip clubs across the country and travel to places as far-flung as Madrid and Dublin, to name just a few.&lt;/p&gt;
&lt;p&gt;While the questionable financial decisions stretch back to 2018, it was in October 2024 that OnLight was in dire straits and almost out of cash.&lt;/p&gt;
&lt;p&gt;The organization had just $55,000 in cash on hand and owed more than $200,000 in unpaid bills accrued over several months.&lt;/p&gt;
&lt;p&gt;OnLight&amp;rsquo;s then-executive director, Charles Baker, wrote to then Aurora Mayor Richard Irvin that the organization was at &amp;ldquo;a critical juncture and urgently needs an infusion of capital to remain operational.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;At Baker&amp;rsquo;s request, and with the support of Irvin&amp;rsquo;s colleague and close lifelong friend Michael Pegues &amp;mdash; who served both as chairman and CEO of OnLight and at the same time chief information officer for the city of Aurora &amp;mdash; Irvin signed a letter saying that the city would guarantee a $450,000 credit line increase for OnLight.&lt;/p&gt;
&lt;p&gt;The credit infusion was approved by OnLight board members, including Irvin and Pegues, in a quickly arranged series of emails, according to documents shared with WTTW News.&lt;/p&gt;
&lt;p&gt;But the Aurora City Council never agreed to the move, even though the letter Irvin sent to OnLight&amp;rsquo;s bankers said the increase was in &amp;ldquo;anticipation of the finalization and approval of a Revised Master Service Agreement.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;In a statement to WTTW News, Irvin said that the city&amp;rsquo;s existing agreement with OnLight blessed the loan.&lt;/p&gt;
&lt;p&gt;But the October 2024 letter to OnLight&amp;rsquo;s lender signed by Irvin says the organization wants &amp;ldquo;to raise the current limit from $500,000 to a maximum of $950,000.&amp;rdquo; That $500,000 limit was approved by aldermen in 2015.&amp;nbsp;&lt;/p&gt;
&lt;p&gt;There is no record of Aurora&amp;rsquo;s aldermen approving that increase to the credit limit.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;Over my 8 years as Mayor, I made it a practice NOT to commit the City of Aurora to any financial obligations that were not approved by the City Council,&amp;rdquo; Irvin said in his statement to WTTW News. &amp;ldquo;I further made it a practice to have my corporation counsel review and give approval for any financial documents before I signed to ensure signing was appropriate.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;After WTTW News asked Irvin to comment on the discrepancy, former OnLight chairman Pegues responded via email, claiming that the letter bearing Irvin&amp;rsquo;s signature &amp;ldquo;appears to be inaccurate. The guarantee has not exceeded the $500,000 threshold. Although OnLight Aurora requested additional funds in 2024, previous loan amounts were paid down.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;That contradicts the October 2024 email from former executive director Baker to Irvin &amp;mdash; on which Pegues was copied &amp;mdash; saying that &amp;ldquo;(w)e have exhausted our existing line of credit and seek the City&amp;rsquo;s assistance in extending an additional $450K.&amp;rdquo;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;It also contradicts emails from Pegues to OnLight&amp;rsquo;s lender saying that he&amp;rsquo;s working on &amp;ldquo;the additional $450k extension&amp;rdquo; and another seeking the OnLight board&amp;rsquo;s approval &amp;ldquo;to raise the current limit from $500,000 to a maximum of $950,000.&amp;rdquo;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Statements from OnLight&amp;rsquo;s lender provided to WTTW News show outstanding loan balances well in excess of $500,000.&lt;/p&gt;
&lt;hr /&gt;
&lt;p&gt;&lt;span class=&quot;image-full non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/Screenshot_18-11-2025_164722_.jpeg&quot; width=&quot;629&quot; height=&quot;342&quot; /&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;&lt;span style=&quot;font-size: 10pt; color: #808080;&quot;&gt;&lt;em&gt;&lt;span class=&quot;image-full non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;A letter signed by Aurora Mayor Richard Irvin authorizing a line of credit increase. (City of Aurora)&lt;/span&gt;&lt;/span&gt;&lt;/em&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;WTTW News asked for further comment on the fact that Baker&amp;rsquo;s email disputes their claim &amp;mdash; and the fact that irrespective of whether OnLight never borrowed more than the agreement with the city stipulates, Irvin still appeared to have improperly represented that the city would guarantee an additional loan.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;(M)y signature was affixed to that letter in the normal course of business while doing business with a franchisee based on a master service agreement that was entered into with On-Light Aurora before I became Mayor,&amp;rdquo; Irvin wrote in an email. &amp;ldquo;I was advised by my staff that in allowing my signature to be placed on that letter, there would be no additional financial obligation to the City of Aurora as that letter&amp;rsquo;s intent was meant to fall within the limits of the master service agreement already approved by the Aurora City Council In fact I believe we stayed within those limitations. I disagree with the current administration&amp;rsquo;s assertion otherwise.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;That current administration is Aurora Mayor John Laesch, who unseated Irvin in April in a contentious runoff election.&amp;nbsp;&lt;/p&gt;
&lt;p&gt;&amp;ldquo;He basically put the city on the hook for $450,000 without seeking Council approval,&amp;rdquo; said Laesch. &amp;ldquo;Our city governance requires any expenditure over 50,000 (dollars) to go through the City Council for approval.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Laesch said his administration has found drafts of a revised agreement between the city and OnLight, but that they never made it to the City Council.&lt;/p&gt;
&lt;p&gt;The apparently unauthorized credit bump is the latest revelation about the finances of OnLight, which critics say has failed to live up to promises of widespread, high-speed connectivity while spending heavily.&lt;/p&gt;
&lt;p&gt;&lt;span class=&quot;image-full non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/Aurora_River_City.jpg&quot; width=&quot;630&quot; height=&quot;248&quot; /&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;&lt;span style=&quot;font-size: 10pt; color: #808080;&quot;&gt;&lt;em&gt;&lt;span class=&quot;image-full non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;A view of Aurora from the Fox River. (City of Aurora)&lt;/span&gt;&lt;/span&gt;&lt;/em&gt;&lt;/span&gt;&lt;/p&gt;
&lt;h3&gt;Strip Clubs, Cash Withdrawals and Travel&lt;/h3&gt;
&lt;p&gt;In September, Laesch outlined OnLight&amp;rsquo;s precarious financial position in a presentation to City Council members.&lt;/p&gt;
&lt;p&gt;In addition to the nearly $1 million in debt and regular monthly losses, officials also said they have uncovered a pattern of highly questionable spending on a card tied to OnLight &amp;mdash; expenses, those officials say, that were almost exclusively racked up by Irvin&amp;rsquo;s ally Pegues.&lt;/p&gt;
&lt;p&gt;Among the eyebrow-raising charges between 2018 and 2025:&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;More than $50,000 in ATM withdrawals were made, including nearly $15,000 in 2022 alone. Many were made in the Chicago area, however a bank statement provided to WTTW News also shows withdrawals in places including California, Florida and Maryland, as well as overseas in Madrid, Spain and Budapest, Hungary;&lt;/li&gt;
&lt;li&gt;Nearly $70,000 on entertainment and meals, including more than $7,000 at strip clubs in the Chicago area, Baltimore, Las Vegas, Los Angeles, and Miami and Pompano Beach, Florida;&lt;/li&gt;
&lt;li&gt;More than $70,000 on travel and transportation, with expenses in places including New York, California, Florida, and as far afield as Dublin;&lt;/li&gt;
&lt;li&gt;More than $100,000 on events and networking;&lt;/li&gt;
&lt;li&gt;$45,000 in sponsorships, including $13,700 to sponsor a comedy series put on by a company that Pegues&amp;rsquo; wife ran;&lt;/li&gt;
&lt;li&gt;and $850 on three political contributions that are illegal for a nonprofit to make, two of which never surfaced in candidate filings with the Illinois Board of Elections.&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&amp;ldquo;It&amp;rsquo;s just an enormous amount of money &amp;hellip; and there&amp;rsquo;s nothing to show for it,&amp;rdquo; said current Aurora Mayor John Laesch.&lt;/p&gt;
&lt;p&gt;The charges total some $337,000 between 2018 and 2025, despite the fact that OnLight actually lost clients during that time. The majority of charges were described on expense reports in broad terms like marketing expenses or meetings &amp;mdash; when expense reports were filed at all, leaders say.&lt;/p&gt;
&lt;p&gt;And it&amp;rsquo;s not just the political contributions that could run afoul of the legal system. Both federal and state law prohibit expenditures that unreasonably benefit a nonprofit&amp;rsquo;s officers and directors, which included Pegues.&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Sam Brunson, a professor at Loyola University Chicago&amp;rsquo;s School of Law who focuses on nonprofits, said expenses like travel, lodging and dinners don&amp;rsquo;t necessarily raise red flags since they can be legitimate ways to grow and support an organization. But things like ATM withdrawals without detailed expense reports and visits to strip clubs and cigar shops may not pass the smell test.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;The biggest potential concern is that essentially he&amp;rsquo;s using the nonprofit&amp;rsquo;s money to buy things for himself,&amp;rdquo; Brunson said. &amp;ldquo;It boils down to, was it a reasonable expenditure, and was the amount reasonable for (the nonprofit&amp;rsquo;s) purposes? &amp;hellip; If I&amp;rsquo;m the IRS or the (Illinois) secretary of state and I&amp;rsquo;m looking at it, I see cigar shop, I see gentleman&amp;rsquo;s club, and I&amp;rsquo;m going to be skeptical.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;There were also four charges at motels in Aurora and Naperville. Two of those charges occurred on the same date as cash withdrawals. A third was recorded on the same date as more than $1,000 in charges at a Stone Park strip club.&lt;/p&gt;
&lt;p&gt;When asked about the accusations of improper spending, Pegues sent WTTW News a statement that did not directly address the array of unusual charges. It reads in full:&lt;/p&gt;
&lt;p&gt;&amp;ldquo;OnLight Aurora includes a Low-Profit Limited Liability Company (L3C) component that functions independently from the City of Aurora. The City does not oversee, authorize, or assume responsibility for OnLight&amp;rsquo;s internal financial decisions or operational activities.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;This legal and operational separation is explicitly outlined in the Master Service Agreement between the City and OnLight. Any attempt by the City to direct or influence OnLight&amp;rsquo;s financial conduct beyond the scope of that agreement would not only breach contractual terms but could also raise legal concerns under applicable federal and state antitrust statutes, including the Sherman Act and the Illinois Antitrust Act, which prohibit improper coordination or interference between public entities and private organizations.&amp;rdquo;&lt;/p&gt;
&lt;h3&gt;How It&amp;rsquo;s Supposed to Work&lt;/h3&gt;
&lt;p&gt;OnLight Aurora was formed in 2012 to manage the city&amp;rsquo;s fiber optic network, with the goal of providing high-speed internet service to community anchors like schools and hospitals. When Irvin took over as Aurora mayor in 2017, Pegues became the city&amp;rsquo;s chief information officer, as well as leader of OnLight.&lt;/p&gt;
&lt;p&gt;Pegues told a podcast earlier this year that after two decades in the private sector, &amp;ldquo;I wanted a little something that, you know, makes me feel good and warm and fuzzy inside, and I just wanted to give back and pay it forward to my community.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;While OnLight earns revenue from its customers, it has also received more than $300,000 in direct city support over the years for a variety of initiatives. And while it&amp;rsquo;s not run by the city, Pegues, Irvin and former Ald. Sherman Jenkins served on its board, and documents and emails obtained by WTTW News show city staffers regularly working on OnLight-related issues.&lt;/p&gt;
&lt;p&gt;OnLight was formed as a nonprofit, with the for-profit arm Pegues referenced that&amp;rsquo;s known as an L3C, or a low-profit limited liability corporation. That allows OnLight to provide services to businesses in Aurora in addition to other tax-exempt entities.&lt;/p&gt;
&lt;p&gt;The arrangement came under scrutiny in 2022 as part of a&amp;nbsp;&lt;a href=&quot;https://www.chicagotribune.com/2022/06/23/contractors-asked-police-to-probe-top-aide-of-aurora-mayor-richard-irvin-over-aides-efforts-to-fund-wifes-business/&quot; target=&quot;_blank&quot; rel=&quot;noopener noreferrer&quot;&gt;Chicago Tribune investigative report&lt;/a&gt; detailing how two contractors complained to Aurora police that they were terminated after declining to sponsor one of Pegues&amp;rsquo; wife&amp;rsquo;s aforementioned events.&lt;/p&gt;
&lt;p&gt;In that same story, Pegues said he didn&amp;rsquo;t need board approval to sponsor his wife&amp;rsquo;s events because he solely oversaw the L3C without input from its parent nonprofit.&lt;/p&gt;
&lt;p&gt;But despite the fact that an L3C has greater leeway than a 501(c)(3), experts say it&amp;rsquo;s still subject to all the state and federal rules governing nonprofits &amp;mdash; including prohibitions against unreasonable spending that benefits an officer or director.&lt;/p&gt;
&lt;blockquote&gt;
&lt;p&gt;&amp;ldquo;The IRS takes these things very seriously, as does the attorney general.&amp;rdquo; - attorney Marc J. Lane&lt;/p&gt;
&lt;/blockquote&gt;
&lt;p&gt;Marc J. Lane, an attorney who drafted Illinois&amp;rsquo; L3C law, said the IRS can hold a nonprofit accountable for misdeeds that happen at an L3C.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;Mission is always the north star of these ventures, which must be charitable or educational significantly,&amp;rdquo; Lane said. &amp;ldquo;If somebody is charging personal expenses on a nonprofit credit card, there needs to have been a system in place to spot that and stop it, and there needs to be consequences. The IRS takes these things very seriously, as does the attorney general.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Asked for comment about inappropriate spending at OnLight, Irvin in an email wrote to&amp;nbsp; WTTW News: &amp;ldquo;As to the issue of On-Light&amp;rsquo;s directors misusing funds, that had absolutely nothing at all to do with me or the the City of Aurora. As stated, On-Light Aurora is a separate legal entity and its action cannot be attributed to the City of Aurora.&amp;rdquo; &amp;nbsp; &amp;ldquo;If the allegations that are being made against On-Light Aurora personnel are true, it is appalling, and it shouldn&amp;rsquo;t have happened.&amp;nbsp; But those allegations need to be addressed by the On-light corporate entity which governs On-Light Aurora.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;In a Facebook post about OnLight earlier this fall, Irvin said that he &amp;ldquo;was not a member of the finance committee and was not involved in the organization&amp;rsquo;s fiscal management or expenditure approvals.&amp;rdquo; An email provided to WTTW News by OnLight&amp;rsquo;s current leader shows Irvin in his capacity as board member voting to approve the credit limit increase.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;If the recent allegations regarding OnLight Aurora&amp;rsquo;s spending are proven true, those directly responsible should be held fully accountable. Any illegal use of funds would be deeply concerning and completely unacceptable,&amp;rdquo; Irvin wrote. &amp;ldquo;At no time did I personally or financially benefit from any alleged illegal expenditures or misuse of funds.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Former executive director Charles Baker did not respond to a request for comment.&lt;/p&gt;
&lt;h3&gt;What Happens Now?&lt;/h3&gt;
&lt;p&gt;Asked about fallout from potentially improper spending, Aurora Mayor Laesch said: &amp;ldquo;We&amp;rsquo;ve shared documents with law enforcement entities &amp;mdash; I&amp;rsquo;ll just leave it at that.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Laesch is now working to get OnLight back on its feet, and has tapped local IT professional Austin FitzCorbett as a volunteer director.&amp;nbsp;&lt;/p&gt;
&lt;p&gt;&lt;span class=&quot;image-pull-left non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/John_Laesch_CityofAurora.jpg&quot; width=&quot;630&quot; height=&quot;426&quot; /&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;&lt;span style=&quot;font-size: 10pt; color: #808080;&quot;&gt;&lt;em&gt;&lt;span class=&quot;image-pull-left non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;Current Aurora Mayor John Laesch. (City of Aurora)&lt;/span&gt;&lt;/span&gt;&lt;/em&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;FitzCorbett told WTTW News that when he saw the charges OnLight had racked up and the state of its financial controls, &amp;ldquo;it was definitely a &amp;lsquo;what in the world?&amp;rsquo; kind of moment.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;FitzCorbett said cost-saving efforts have helped reduce OnLight&amp;rsquo;s monthly expenses by nearly three-quarters, though the organization is still in a difficult financial position. And with officials saying OnLight faces nearly $1 million in debt, the city&amp;rsquo;s credit guarantee could leave taxpayers on the hook.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;If we don&amp;rsquo;t find a way to right the ship, to push it forward &amp;hellip; and over time recover revenue and decrease that debt, that debt falls onto the taxpayers,&amp;rdquo; FitzCorbett said. &amp;ldquo;That is not something that anybody wants.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Since leaving office, Irvin has maintained a public profile, sharing pictures of himself at various local events on his Facebook page and occasionally taking shots at his successor in the mayor&amp;rsquo;s office.&lt;/p&gt;
&lt;p&gt;Irvin and Pegues have also launched a consulting firm called Aurora Dynamic Solutions. That firm&amp;rsquo;s existence was first revealed by the Tribune during Irvin&amp;rsquo;s failed 2022 run for the GOP gubernatorial nomination, which a spokesman said would not become an active entity until after Irvin left office.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;We specialize in critical infrastructure modernization, smart city implementations, and cybersecurity solutions,&amp;rdquo; the company&amp;rsquo;s website homepage reads. &amp;ldquo;From telecommunications networks to public safety systems&amp;mdash;we deliver the expertise and innovation needed to build resilient, intelligent infrastructure.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;After leaving his post with the city and OnLight following Irvin&amp;rsquo;s defeat, Pegues told the Aurora Beacon-News that &amp;ldquo;we&amp;rsquo;re going to come back with a bang.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;&amp;ldquo;I&amp;rsquo;ll still be contributing to the growth and prosperity of the city of Aurora because this is my hometown,&amp;rdquo; Pegues said, &amp;ldquo;and I&amp;rsquo;m going to be here.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;&lt;em&gt;Contact Nick Blumberg: &lt;/em&gt;&lt;a href=&quot;mailto:nblumberg@wttw.com&quot; target=&quot;_blank&quot; rel=&quot;noopener noreferrer&quot;&gt;&lt;em&gt;nblumberg@wttw.com&lt;/em&gt;&lt;/a&gt;&lt;em&gt; | (773) 509-5434 | &lt;/em&gt;&lt;a href=&quot;https://twitter.com/ndblumberg&quot; target=&quot;_blank&quot; rel=&quot;noopener noreferrer&quot;&gt;&lt;em&gt;@ndblumberg&lt;/em&gt;&lt;/a&gt;&lt;/p&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Originally appeared at&amp;nbsp;&lt;a href=&quot;https://news.wttw.com/2025/11/19/ex-aurora-mayor-backed-450k-line-credit-without-council-approval-nonprofit-leader-racked&quot;&gt;https://news.wttw.com/2025/11/19/ex-aurora-mayor-backed-450k-line-credit-without-council-approval-nonprofit-leader-racked&lt;/a&gt;&amp;nbsp;</description>
      <content:encoded>&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;h4 style=&quot;font-weight: 400;&quot;&gt;Entrepreneurial nonprofits and for-profit social enterprises alike are embracing the opportunities the Low-profit Limited Liability Company (L3C) offers. &amp;nbsp;It can facilitate impact investments, optimize tax efficiency, and attract mission-aligned stakeholders. But what the L3C can&amp;rsquo;t do is help its managers dodge their fiduciary responsibilities. &amp;nbsp;&amp;nbsp;&lt;/h4&gt;
&lt;hr /&gt;
&lt;h3 class=&quot;article-title&quot;&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/wttw-logo-blk.png&quot; width=&quot;311&quot; height=&quot;81&quot; /&gt;&lt;/h3&gt;
&lt;h3 class=&quot;article-title&quot;&gt;Ex-Aurora Mayor Backed $450K Line of Credit Without Council Approval; Nonprofit Leader Racked Up Charges at ATMs and Strip Clubs&lt;/h3&gt;
&lt;h4 class=&quot;sub-headline&quot;&gt;Documents obtained by WTTW News shine light on finances.&lt;/h4&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/iStock-801244748.jpg&quot; width=&quot;630&quot; height=&quot;354&quot; /&gt;&lt;/p&gt;
&lt;div class=&quot;image-container&quot; style=&quot;text-align: left;&quot;&gt;&lt;span style=&quot;font-size: 10pt; color: #808080;&quot;&gt;&lt;em&gt;&lt;span class=&quot;image-full standalone-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;Downtown Aurora is pictured in a file photo. (Denis Tangney Jr. / iStock)&lt;/span&gt;&lt;/span&gt;&lt;/em&gt;&lt;/span&gt;&lt;/div&gt;
&lt;p&gt;OnLight Aurora, a city-supported nonprofit, aims to provide high speed internet to the west suburban community&amp;rsquo;s institutions, businesses and residents.&lt;/p&gt;
&lt;p&gt;It&amp;rsquo;s also in massive debt, with a long history of questionable expenditures.&lt;/p&gt;
&lt;p&gt;The nonprofit, according to an analysis by local officials and documents reviewed by WTTW News, is nearly $1 million in the red, operating at a $27,000 monthly deficit with some $20,000 in monthly debt service payments.&lt;/p&gt;
&lt;p&gt;Then there&amp;rsquo;s the debit card receipts.&amp;nbsp;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Those charges include tens of thousands of dollars in ATM cash withdrawals, additional thousands spent at strip clubs across the country and travel to places as far-flung as Madrid and Dublin, to name just a few.&lt;/p&gt;
&lt;p&gt;While the questionable financial decisions stretch back to 2018, it was in October 2024 that OnLight was in dire straits and almost out of cash.&lt;/p&gt;
&lt;p&gt;The organization had just $55,000 in cash on hand and owed more than $200,000 in unpaid bills accrued over several months.&lt;/p&gt;
&lt;p&gt;OnLight&amp;rsquo;s then-executive director, Charles Baker, wrote to then Aurora Mayor Richard Irvin that the organization was at &amp;ldquo;a critical juncture and urgently needs an infusion of capital to remain operational.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;At Baker&amp;rsquo;s request, and with the support of Irvin&amp;rsquo;s colleague and close lifelong friend Michael Pegues &amp;mdash; who served both as chairman and CEO of OnLight and at the same time chief information officer for the city of Aurora &amp;mdash; Irvin signed a letter saying that the city would guarantee a $450,000 credit line increase for OnLight.&lt;/p&gt;
&lt;p&gt;The credit infusion was approved by OnLight board members, including Irvin and Pegues, in a quickly arranged series of emails, according to documents shared with WTTW News.&lt;/p&gt;
&lt;p&gt;But the Aurora City Council never agreed to the move, even though the letter Irvin sent to OnLight&amp;rsquo;s bankers said the increase was in &amp;ldquo;anticipation of the finalization and approval of a Revised Master Service Agreement.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;In a statement to WTTW News, Irvin said that the city&amp;rsquo;s existing agreement with OnLight blessed the loan.&lt;/p&gt;
&lt;p&gt;But the October 2024 letter to OnLight&amp;rsquo;s lender signed by Irvin says the organization wants &amp;ldquo;to raise the current limit from $500,000 to a maximum of $950,000.&amp;rdquo; That $500,000 limit was approved by aldermen in 2015.&amp;nbsp;&lt;/p&gt;
&lt;p&gt;There is no record of Aurora&amp;rsquo;s aldermen approving that increase to the credit limit.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;Over my 8 years as Mayor, I made it a practice NOT to commit the City of Aurora to any financial obligations that were not approved by the City Council,&amp;rdquo; Irvin said in his statement to WTTW News. &amp;ldquo;I further made it a practice to have my corporation counsel review and give approval for any financial documents before I signed to ensure signing was appropriate.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;After WTTW News asked Irvin to comment on the discrepancy, former OnLight chairman Pegues responded via email, claiming that the letter bearing Irvin&amp;rsquo;s signature &amp;ldquo;appears to be inaccurate. The guarantee has not exceeded the $500,000 threshold. Although OnLight Aurora requested additional funds in 2024, previous loan amounts were paid down.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;That contradicts the October 2024 email from former executive director Baker to Irvin &amp;mdash; on which Pegues was copied &amp;mdash; saying that &amp;ldquo;(w)e have exhausted our existing line of credit and seek the City&amp;rsquo;s assistance in extending an additional $450K.&amp;rdquo;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;It also contradicts emails from Pegues to OnLight&amp;rsquo;s lender saying that he&amp;rsquo;s working on &amp;ldquo;the additional $450k extension&amp;rdquo; and another seeking the OnLight board&amp;rsquo;s approval &amp;ldquo;to raise the current limit from $500,000 to a maximum of $950,000.&amp;rdquo;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Statements from OnLight&amp;rsquo;s lender provided to WTTW News show outstanding loan balances well in excess of $500,000.&lt;/p&gt;
&lt;hr /&gt;
&lt;p&gt;&lt;span class=&quot;image-full non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/Screenshot_18-11-2025_164722_.jpeg&quot; width=&quot;629&quot; height=&quot;342&quot; /&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;&lt;span style=&quot;font-size: 10pt; color: #808080;&quot;&gt;&lt;em&gt;&lt;span class=&quot;image-full non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;A letter signed by Aurora Mayor Richard Irvin authorizing a line of credit increase. (City of Aurora)&lt;/span&gt;&lt;/span&gt;&lt;/em&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;WTTW News asked for further comment on the fact that Baker&amp;rsquo;s email disputes their claim &amp;mdash; and the fact that irrespective of whether OnLight never borrowed more than the agreement with the city stipulates, Irvin still appeared to have improperly represented that the city would guarantee an additional loan.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;(M)y signature was affixed to that letter in the normal course of business while doing business with a franchisee based on a master service agreement that was entered into with On-Light Aurora before I became Mayor,&amp;rdquo; Irvin wrote in an email. &amp;ldquo;I was advised by my staff that in allowing my signature to be placed on that letter, there would be no additional financial obligation to the City of Aurora as that letter&amp;rsquo;s intent was meant to fall within the limits of the master service agreement already approved by the Aurora City Council In fact I believe we stayed within those limitations. I disagree with the current administration&amp;rsquo;s assertion otherwise.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;That current administration is Aurora Mayor John Laesch, who unseated Irvin in April in a contentious runoff election.&amp;nbsp;&lt;/p&gt;
&lt;p&gt;&amp;ldquo;He basically put the city on the hook for $450,000 without seeking Council approval,&amp;rdquo; said Laesch. &amp;ldquo;Our city governance requires any expenditure over 50,000 (dollars) to go through the City Council for approval.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Laesch said his administration has found drafts of a revised agreement between the city and OnLight, but that they never made it to the City Council.&lt;/p&gt;
&lt;p&gt;The apparently unauthorized credit bump is the latest revelation about the finances of OnLight, which critics say has failed to live up to promises of widespread, high-speed connectivity while spending heavily.&lt;/p&gt;
&lt;p&gt;&lt;span class=&quot;image-full non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/Aurora_River_City.jpg&quot; width=&quot;630&quot; height=&quot;248&quot; /&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;&lt;span style=&quot;font-size: 10pt; color: #808080;&quot;&gt;&lt;em&gt;&lt;span class=&quot;image-full non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;A view of Aurora from the Fox River. (City of Aurora)&lt;/span&gt;&lt;/span&gt;&lt;/em&gt;&lt;/span&gt;&lt;/p&gt;
&lt;h3&gt;Strip Clubs, Cash Withdrawals and Travel&lt;/h3&gt;
&lt;p&gt;In September, Laesch outlined OnLight&amp;rsquo;s precarious financial position in a presentation to City Council members.&lt;/p&gt;
&lt;p&gt;In addition to the nearly $1 million in debt and regular monthly losses, officials also said they have uncovered a pattern of highly questionable spending on a card tied to OnLight &amp;mdash; expenses, those officials say, that were almost exclusively racked up by Irvin&amp;rsquo;s ally Pegues.&lt;/p&gt;
&lt;p&gt;Among the eyebrow-raising charges between 2018 and 2025:&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;More than $50,000 in ATM withdrawals were made, including nearly $15,000 in 2022 alone. Many were made in the Chicago area, however a bank statement provided to WTTW News also shows withdrawals in places including California, Florida and Maryland, as well as overseas in Madrid, Spain and Budapest, Hungary;&lt;/li&gt;
&lt;li&gt;Nearly $70,000 on entertainment and meals, including more than $7,000 at strip clubs in the Chicago area, Baltimore, Las Vegas, Los Angeles, and Miami and Pompano Beach, Florida;&lt;/li&gt;
&lt;li&gt;More than $70,000 on travel and transportation, with expenses in places including New York, California, Florida, and as far afield as Dublin;&lt;/li&gt;
&lt;li&gt;More than $100,000 on events and networking;&lt;/li&gt;
&lt;li&gt;$45,000 in sponsorships, including $13,700 to sponsor a comedy series put on by a company that Pegues&amp;rsquo; wife ran;&lt;/li&gt;
&lt;li&gt;and $850 on three political contributions that are illegal for a nonprofit to make, two of which never surfaced in candidate filings with the Illinois Board of Elections.&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&amp;ldquo;It&amp;rsquo;s just an enormous amount of money &amp;hellip; and there&amp;rsquo;s nothing to show for it,&amp;rdquo; said current Aurora Mayor John Laesch.&lt;/p&gt;
&lt;p&gt;The charges total some $337,000 between 2018 and 2025, despite the fact that OnLight actually lost clients during that time. The majority of charges were described on expense reports in broad terms like marketing expenses or meetings &amp;mdash; when expense reports were filed at all, leaders say.&lt;/p&gt;
&lt;p&gt;And it&amp;rsquo;s not just the political contributions that could run afoul of the legal system. Both federal and state law prohibit expenditures that unreasonably benefit a nonprofit&amp;rsquo;s officers and directors, which included Pegues.&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Sam Brunson, a professor at Loyola University Chicago&amp;rsquo;s School of Law who focuses on nonprofits, said expenses like travel, lodging and dinners don&amp;rsquo;t necessarily raise red flags since they can be legitimate ways to grow and support an organization. But things like ATM withdrawals without detailed expense reports and visits to strip clubs and cigar shops may not pass the smell test.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;The biggest potential concern is that essentially he&amp;rsquo;s using the nonprofit&amp;rsquo;s money to buy things for himself,&amp;rdquo; Brunson said. &amp;ldquo;It boils down to, was it a reasonable expenditure, and was the amount reasonable for (the nonprofit&amp;rsquo;s) purposes? &amp;hellip; If I&amp;rsquo;m the IRS or the (Illinois) secretary of state and I&amp;rsquo;m looking at it, I see cigar shop, I see gentleman&amp;rsquo;s club, and I&amp;rsquo;m going to be skeptical.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;There were also four charges at motels in Aurora and Naperville. Two of those charges occurred on the same date as cash withdrawals. A third was recorded on the same date as more than $1,000 in charges at a Stone Park strip club.&lt;/p&gt;
&lt;p&gt;When asked about the accusations of improper spending, Pegues sent WTTW News a statement that did not directly address the array of unusual charges. It reads in full:&lt;/p&gt;
&lt;p&gt;&amp;ldquo;OnLight Aurora includes a Low-Profit Limited Liability Company (L3C) component that functions independently from the City of Aurora. The City does not oversee, authorize, or assume responsibility for OnLight&amp;rsquo;s internal financial decisions or operational activities.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;This legal and operational separation is explicitly outlined in the Master Service Agreement between the City and OnLight. Any attempt by the City to direct or influence OnLight&amp;rsquo;s financial conduct beyond the scope of that agreement would not only breach contractual terms but could also raise legal concerns under applicable federal and state antitrust statutes, including the Sherman Act and the Illinois Antitrust Act, which prohibit improper coordination or interference between public entities and private organizations.&amp;rdquo;&lt;/p&gt;
&lt;h3&gt;How It&amp;rsquo;s Supposed to Work&lt;/h3&gt;
&lt;p&gt;OnLight Aurora was formed in 2012 to manage the city&amp;rsquo;s fiber optic network, with the goal of providing high-speed internet service to community anchors like schools and hospitals. When Irvin took over as Aurora mayor in 2017, Pegues became the city&amp;rsquo;s chief information officer, as well as leader of OnLight.&lt;/p&gt;
&lt;p&gt;Pegues told a podcast earlier this year that after two decades in the private sector, &amp;ldquo;I wanted a little something that, you know, makes me feel good and warm and fuzzy inside, and I just wanted to give back and pay it forward to my community.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;While OnLight earns revenue from its customers, it has also received more than $300,000 in direct city support over the years for a variety of initiatives. And while it&amp;rsquo;s not run by the city, Pegues, Irvin and former Ald. Sherman Jenkins served on its board, and documents and emails obtained by WTTW News show city staffers regularly working on OnLight-related issues.&lt;/p&gt;
&lt;p&gt;OnLight was formed as a nonprofit, with the for-profit arm Pegues referenced that&amp;rsquo;s known as an L3C, or a low-profit limited liability corporation. That allows OnLight to provide services to businesses in Aurora in addition to other tax-exempt entities.&lt;/p&gt;
&lt;p&gt;The arrangement came under scrutiny in 2022 as part of a&amp;nbsp;&lt;a href=&quot;https://www.chicagotribune.com/2022/06/23/contractors-asked-police-to-probe-top-aide-of-aurora-mayor-richard-irvin-over-aides-efforts-to-fund-wifes-business/&quot; target=&quot;_blank&quot; rel=&quot;noopener noreferrer&quot;&gt;Chicago Tribune investigative report&lt;/a&gt; detailing how two contractors complained to Aurora police that they were terminated after declining to sponsor one of Pegues&amp;rsquo; wife&amp;rsquo;s aforementioned events.&lt;/p&gt;
&lt;p&gt;In that same story, Pegues said he didn&amp;rsquo;t need board approval to sponsor his wife&amp;rsquo;s events because he solely oversaw the L3C without input from its parent nonprofit.&lt;/p&gt;
&lt;p&gt;But despite the fact that an L3C has greater leeway than a 501(c)(3), experts say it&amp;rsquo;s still subject to all the state and federal rules governing nonprofits &amp;mdash; including prohibitions against unreasonable spending that benefits an officer or director.&lt;/p&gt;
&lt;blockquote&gt;
&lt;p&gt;&amp;ldquo;The IRS takes these things very seriously, as does the attorney general.&amp;rdquo; - attorney Marc J. Lane&lt;/p&gt;
&lt;/blockquote&gt;
&lt;p&gt;Marc J. Lane, an attorney who drafted Illinois&amp;rsquo; L3C law, said the IRS can hold a nonprofit accountable for misdeeds that happen at an L3C.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;Mission is always the north star of these ventures, which must be charitable or educational significantly,&amp;rdquo; Lane said. &amp;ldquo;If somebody is charging personal expenses on a nonprofit credit card, there needs to have been a system in place to spot that and stop it, and there needs to be consequences. The IRS takes these things very seriously, as does the attorney general.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Asked for comment about inappropriate spending at OnLight, Irvin in an email wrote to&amp;nbsp; WTTW News: &amp;ldquo;As to the issue of On-Light&amp;rsquo;s directors misusing funds, that had absolutely nothing at all to do with me or the the City of Aurora. As stated, On-Light Aurora is a separate legal entity and its action cannot be attributed to the City of Aurora.&amp;rdquo; &amp;nbsp; &amp;ldquo;If the allegations that are being made against On-Light Aurora personnel are true, it is appalling, and it shouldn&amp;rsquo;t have happened.&amp;nbsp; But those allegations need to be addressed by the On-light corporate entity which governs On-Light Aurora.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;In a Facebook post about OnLight earlier this fall, Irvin said that he &amp;ldquo;was not a member of the finance committee and was not involved in the organization&amp;rsquo;s fiscal management or expenditure approvals.&amp;rdquo; An email provided to WTTW News by OnLight&amp;rsquo;s current leader shows Irvin in his capacity as board member voting to approve the credit limit increase.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;If the recent allegations regarding OnLight Aurora&amp;rsquo;s spending are proven true, those directly responsible should be held fully accountable. Any illegal use of funds would be deeply concerning and completely unacceptable,&amp;rdquo; Irvin wrote. &amp;ldquo;At no time did I personally or financially benefit from any alleged illegal expenditures or misuse of funds.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Former executive director Charles Baker did not respond to a request for comment.&lt;/p&gt;
&lt;h3&gt;What Happens Now?&lt;/h3&gt;
&lt;p&gt;Asked about fallout from potentially improper spending, Aurora Mayor Laesch said: &amp;ldquo;We&amp;rsquo;ve shared documents with law enforcement entities &amp;mdash; I&amp;rsquo;ll just leave it at that.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Laesch is now working to get OnLight back on its feet, and has tapped local IT professional Austin FitzCorbett as a volunteer director.&amp;nbsp;&lt;/p&gt;
&lt;p&gt;&lt;span class=&quot;image-pull-left non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/John_Laesch_CityofAurora.jpg&quot; width=&quot;630&quot; height=&quot;426&quot; /&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;&lt;span style=&quot;font-size: 10pt; color: #808080;&quot;&gt;&lt;em&gt;&lt;span class=&quot;image-pull-left non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;Current Aurora Mayor John Laesch. (City of Aurora)&lt;/span&gt;&lt;/span&gt;&lt;/em&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;FitzCorbett told WTTW News that when he saw the charges OnLight had racked up and the state of its financial controls, &amp;ldquo;it was definitely a &amp;lsquo;what in the world?&amp;rsquo; kind of moment.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;FitzCorbett said cost-saving efforts have helped reduce OnLight&amp;rsquo;s monthly expenses by nearly three-quarters, though the organization is still in a difficult financial position. And with officials saying OnLight faces nearly $1 million in debt, the city&amp;rsquo;s credit guarantee could leave taxpayers on the hook.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;If we don&amp;rsquo;t find a way to right the ship, to push it forward &amp;hellip; and over time recover revenue and decrease that debt, that debt falls onto the taxpayers,&amp;rdquo; FitzCorbett said. &amp;ldquo;That is not something that anybody wants.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Since leaving office, Irvin has maintained a public profile, sharing pictures of himself at various local events on his Facebook page and occasionally taking shots at his successor in the mayor&amp;rsquo;s office.&lt;/p&gt;
&lt;p&gt;Irvin and Pegues have also launched a consulting firm called Aurora Dynamic Solutions. That firm&amp;rsquo;s existence was first revealed by the Tribune during Irvin&amp;rsquo;s failed 2022 run for the GOP gubernatorial nomination, which a spokesman said would not become an active entity until after Irvin left office.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;We specialize in critical infrastructure modernization, smart city implementations, and cybersecurity solutions,&amp;rdquo; the company&amp;rsquo;s website homepage reads. &amp;ldquo;From telecommunications networks to public safety systems&amp;mdash;we deliver the expertise and innovation needed to build resilient, intelligent infrastructure.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;After leaving his post with the city and OnLight following Irvin&amp;rsquo;s defeat, Pegues told the Aurora Beacon-News that &amp;ldquo;we&amp;rsquo;re going to come back with a bang.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;&amp;ldquo;I&amp;rsquo;ll still be contributing to the growth and prosperity of the city of Aurora because this is my hometown,&amp;rdquo; Pegues said, &amp;ldquo;and I&amp;rsquo;m going to be here.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;&lt;em&gt;Contact Nick Blumberg: &lt;/em&gt;&lt;a href=&quot;mailto:nblumberg@wttw.com&quot; target=&quot;_blank&quot; rel=&quot;noopener noreferrer&quot;&gt;&lt;em&gt;nblumberg@wttw.com&lt;/em&gt;&lt;/a&gt;&lt;em&gt; | (773) 509-5434 | &lt;/em&gt;&lt;a href=&quot;https://twitter.com/ndblumberg&quot; target=&quot;_blank&quot; rel=&quot;noopener noreferrer&quot;&gt;&lt;em&gt;@ndblumberg&lt;/em&gt;&lt;/a&gt;&lt;/p&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Originally appeared at&amp;nbsp;&lt;a href=&quot;https://news.wttw.com/2025/11/19/ex-aurora-mayor-backed-450k-line-credit-without-council-approval-nonprofit-leader-racked&quot;&gt;https://news.wttw.com/2025/11/19/ex-aurora-mayor-backed-450k-line-credit-without-council-approval-nonprofit-leader-racked&lt;/a&gt;&amp;nbsp;&lt;/p&gt;</content:encoded>
      <category>2026 Lane Reports</category>
      <pubDate>Fri, 02 Jan 2026 10:00:00 -0600</pubDate>
      <link>http://www.marcjlane.com/news/2026/01/02/2026-lane-reports/ex-aurora-mayor-backed-450k-line-of-credit-without-council-approval-nonprofit-leader-racked-up-charges-at-atms-and-strip-clubs/</link>
    </item>
    <item>
      <guid isPermaLink="false">http://www.marcjlane.com/index.php?src=news&amp;refno=693&amp;category=In the News</guid>
      <title>Ex-Aurora Mayor Backed $450K Line of Credit Without Council Approval; Nonprofit Leader Racked Up Charges at ATMs and Strip Clubs</title>
      <description>&amp;nbsp;&lt;/p&gt;
&lt;h4 style=&quot;font-weight: 400;&quot;&gt;Entrepreneurial nonprofits and for-profit social enterprises alike are embracing the opportunities the Low-profit Limited Liability Company (L3C) offers. &amp;nbsp;It can facilitate impact investments, optimize tax efficiency, and attract mission-aligned stakeholders. But what the L3C can&amp;rsquo;t do is help its managers dodge their fiduciary responsibilities. &amp;nbsp;&amp;nbsp;&lt;/h4&gt;
&lt;hr /&gt;
&lt;h3 class=&quot;article-title&quot;&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/wttw-logo-blk.png&quot; width=&quot;311&quot; height=&quot;81&quot; /&gt;&lt;/h3&gt;
&lt;h3 class=&quot;article-title&quot;&gt;Ex-Aurora Mayor Backed $450K Line of Credit Without Council Approval; Nonprofit Leader Racked Up Charges at ATMs and Strip Clubs&lt;/h3&gt;
&lt;h4 class=&quot;sub-headline&quot;&gt;Documents obtained by WTTW News shine light on finances.&lt;/h4&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/iStock-801244748.jpg&quot; width=&quot;630&quot; height=&quot;354&quot; /&gt;&lt;/p&gt;
&lt;div class=&quot;image-container&quot; style=&quot;text-align: left;&quot;&gt;&lt;span style=&quot;font-size: 10pt; color: #808080;&quot;&gt;&lt;em&gt;&lt;span class=&quot;image-full standalone-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;Downtown Aurora is pictured in a file photo. (Denis Tangney Jr. / iStock)&lt;/span&gt;&lt;/span&gt;&lt;/em&gt;&lt;/span&gt;&lt;/div&gt;
&lt;p&gt;OnLight Aurora, a city-supported nonprofit, aims to provide high speed internet to the west suburban community&amp;rsquo;s institutions, businesses and residents.&lt;/p&gt;
&lt;p&gt;It&amp;rsquo;s also in massive debt, with a long history of questionable expenditures.&lt;/p&gt;
&lt;p&gt;The nonprofit, according to an analysis by local officials and documents reviewed by WTTW News, is nearly $1 million in the red, operating at a $27,000 monthly deficit with some $20,000 in monthly debt service payments.&lt;/p&gt;
&lt;p&gt;Then there&amp;rsquo;s the debit card receipts.&amp;nbsp;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Those charges include tens of thousands of dollars in ATM cash withdrawals, additional thousands spent at strip clubs across the country and travel to places as far-flung as Madrid and Dublin, to name just a few.&lt;/p&gt;
&lt;p&gt;While the questionable financial decisions stretch back to 2018, it was in October 2024 that OnLight was in dire straits and almost out of cash.&lt;/p&gt;
&lt;p&gt;The organization had just $55,000 in cash on hand and owed more than $200,000 in unpaid bills accrued over several months.&lt;/p&gt;
&lt;p&gt;OnLight&amp;rsquo;s then-executive director, Charles Baker, wrote to then Aurora Mayor Richard Irvin that the organization was at &amp;ldquo;a critical juncture and urgently needs an infusion of capital to remain operational.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;At Baker&amp;rsquo;s request, and with the support of Irvin&amp;rsquo;s colleague and close lifelong friend Michael Pegues &amp;mdash; who served both as chairman and CEO of OnLight and at the same time chief information officer for the city of Aurora &amp;mdash; Irvin signed a letter saying that the city would guarantee a $450,000 credit line increase for OnLight.&lt;/p&gt;
&lt;p&gt;The credit infusion was approved by OnLight board members, including Irvin and Pegues, in a quickly arranged series of emails, according to documents shared with WTTW News.&lt;/p&gt;
&lt;p&gt;But the Aurora City Council never agreed to the move, even though the letter Irvin sent to OnLight&amp;rsquo;s bankers said the increase was in &amp;ldquo;anticipation of the finalization and approval of a Revised Master Service Agreement.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;In a statement to WTTW News, Irvin said that the city&amp;rsquo;s existing agreement with OnLight blessed the loan.&lt;/p&gt;
&lt;p&gt;But the October 2024 letter to OnLight&amp;rsquo;s lender signed by Irvin says the organization wants &amp;ldquo;to raise the current limit from $500,000 to a maximum of $950,000.&amp;rdquo; That $500,000 limit was approved by aldermen in 2015.&amp;nbsp;&lt;/p&gt;
&lt;p&gt;There is no record of Aurora&amp;rsquo;s aldermen approving that increase to the credit limit.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;Over my 8 years as Mayor, I made it a practice NOT to commit the City of Aurora to any financial obligations that were not approved by the City Council,&amp;rdquo; Irvin said in his statement to WTTW News. &amp;ldquo;I further made it a practice to have my corporation counsel review and give approval for any financial documents before I signed to ensure signing was appropriate.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;After WTTW News asked Irvin to comment on the discrepancy, former OnLight chairman Pegues responded via email, claiming that the letter bearing Irvin&amp;rsquo;s signature &amp;ldquo;appears to be inaccurate. The guarantee has not exceeded the $500,000 threshold. Although OnLight Aurora requested additional funds in 2024, previous loan amounts were paid down.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;That contradicts the October 2024 email from former executive director Baker to Irvin &amp;mdash; on which Pegues was copied &amp;mdash; saying that &amp;ldquo;(w)e have exhausted our existing line of credit and seek the City&amp;rsquo;s assistance in extending an additional $450K.&amp;rdquo;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;It also contradicts emails from Pegues to OnLight&amp;rsquo;s lender saying that he&amp;rsquo;s working on &amp;ldquo;the additional $450k extension&amp;rdquo; and another seeking the OnLight board&amp;rsquo;s approval &amp;ldquo;to raise the current limit from $500,000 to a maximum of $950,000.&amp;rdquo;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Statements from OnLight&amp;rsquo;s lender provided to WTTW News show outstanding loan balances well in excess of $500,000.&lt;/p&gt;
&lt;hr /&gt;
&lt;p&gt;&lt;span class=&quot;image-full non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/Screenshot_18-11-2025_164722_.jpeg&quot; width=&quot;629&quot; height=&quot;342&quot; /&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;&lt;span style=&quot;font-size: 10pt; color: #808080;&quot;&gt;&lt;em&gt;&lt;span class=&quot;image-full non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;A letter signed by Aurora Mayor Richard Irvin authorizing a line of credit increase. (City of Aurora)&lt;/span&gt;&lt;/span&gt;&lt;/em&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;WTTW News asked for further comment on the fact that Baker&amp;rsquo;s email disputes their claim &amp;mdash; and the fact that irrespective of whether OnLight never borrowed more than the agreement with the city stipulates, Irvin still appeared to have improperly represented that the city would guarantee an additional loan.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;(M)y signature was affixed to that letter in the normal course of business while doing business with a franchisee based on a master service agreement that was entered into with On-Light Aurora before I became Mayor,&amp;rdquo; Irvin wrote in an email. &amp;ldquo;I was advised by my staff that in allowing my signature to be placed on that letter, there would be no additional financial obligation to the City of Aurora as that letter&amp;rsquo;s intent was meant to fall within the limits of the master service agreement already approved by the Aurora City Council In fact I believe we stayed within those limitations. I disagree with the current administration&amp;rsquo;s assertion otherwise.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;That current administration is Aurora Mayor John Laesch, who unseated Irvin in April in a contentious runoff election.&amp;nbsp;&lt;/p&gt;
&lt;p&gt;&amp;ldquo;He basically put the city on the hook for $450,000 without seeking Council approval,&amp;rdquo; said Laesch. &amp;ldquo;Our city governance requires any expenditure over 50,000 (dollars) to go through the City Council for approval.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Laesch said his administration has found drafts of a revised agreement between the city and OnLight, but that they never made it to the City Council.&lt;/p&gt;
&lt;p&gt;The apparently unauthorized credit bump is the latest revelation about the finances of OnLight, which critics say has failed to live up to promises of widespread, high-speed connectivity while spending heavily.&lt;/p&gt;
&lt;p&gt;&lt;span class=&quot;image-full non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/Aurora_River_City.jpg&quot; width=&quot;630&quot; height=&quot;248&quot; /&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;&lt;span style=&quot;font-size: 10pt; color: #808080;&quot;&gt;&lt;em&gt;&lt;span class=&quot;image-full non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;A view of Aurora from the Fox River. (City of Aurora)&lt;/span&gt;&lt;/span&gt;&lt;/em&gt;&lt;/span&gt;&lt;/p&gt;
&lt;h3&gt;Strip Clubs, Cash Withdrawals and Travel&lt;/h3&gt;
&lt;p&gt;In September, Laesch outlined OnLight&amp;rsquo;s precarious financial position in a presentation to City Council members.&lt;/p&gt;
&lt;p&gt;In addition to the nearly $1 million in debt and regular monthly losses, officials also said they have uncovered a pattern of highly questionable spending on a card tied to OnLight &amp;mdash; expenses, those officials say, that were almost exclusively racked up by Irvin&amp;rsquo;s ally Pegues.&lt;/p&gt;
&lt;p&gt;Among the eyebrow-raising charges between 2018 and 2025:&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;More than $50,000 in ATM withdrawals were made, including nearly $15,000 in 2022 alone. Many were made in the Chicago area, however a bank statement provided to WTTW News also shows withdrawals in places including California, Florida and Maryland, as well as overseas in Madrid, Spain and Budapest, Hungary;&lt;/li&gt;
&lt;li&gt;Nearly $70,000 on entertainment and meals, including more than $7,000 at strip clubs in the Chicago area, Baltimore, Las Vegas, Los Angeles, and Miami and Pompano Beach, Florida;&lt;/li&gt;
&lt;li&gt;More than $70,000 on travel and transportation, with expenses in places including New York, California, Florida, and as far afield as Dublin;&lt;/li&gt;
&lt;li&gt;More than $100,000 on events and networking;&lt;/li&gt;
&lt;li&gt;$45,000 in sponsorships, including $13,700 to sponsor a comedy series put on by a company that Pegues&amp;rsquo; wife ran;&lt;/li&gt;
&lt;li&gt;and $850 on three political contributions that are illegal for a nonprofit to make, two of which never surfaced in candidate filings with the Illinois Board of Elections.&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&amp;ldquo;It&amp;rsquo;s just an enormous amount of money &amp;hellip; and there&amp;rsquo;s nothing to show for it,&amp;rdquo; said current Aurora Mayor John Laesch.&lt;/p&gt;
&lt;p&gt;The charges total some $337,000 between 2018 and 2025, despite the fact that OnLight actually lost clients during that time. The majority of charges were described on expense reports in broad terms like marketing expenses or meetings &amp;mdash; when expense reports were filed at all, leaders say.&lt;/p&gt;
&lt;p&gt;And it&amp;rsquo;s not just the political contributions that could run afoul of the legal system. Both federal and state law prohibit expenditures that unreasonably benefit a nonprofit&amp;rsquo;s officers and directors, which included Pegues.&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Sam Brunson, a professor at Loyola University Chicago&amp;rsquo;s School of Law who focuses on nonprofits, said expenses like travel, lodging and dinners don&amp;rsquo;t necessarily raise red flags since they can be legitimate ways to grow and support an organization. But things like ATM withdrawals without detailed expense reports and visits to strip clubs and cigar shops may not pass the smell test.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;The biggest potential concern is that essentially he&amp;rsquo;s using the nonprofit&amp;rsquo;s money to buy things for himself,&amp;rdquo; Brunson said. &amp;ldquo;It boils down to, was it a reasonable expenditure, and was the amount reasonable for (the nonprofit&amp;rsquo;s) purposes? &amp;hellip; If I&amp;rsquo;m the IRS or the (Illinois) secretary of state and I&amp;rsquo;m looking at it, I see cigar shop, I see gentleman&amp;rsquo;s club, and I&amp;rsquo;m going to be skeptical.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;There were also four charges at motels in Aurora and Naperville. Two of those charges occurred on the same date as cash withdrawals. A third was recorded on the same date as more than $1,000 in charges at a Stone Park strip club.&lt;/p&gt;
&lt;p&gt;When asked about the accusations of improper spending, Pegues sent WTTW News a statement that did not directly address the array of unusual charges. It reads in full:&lt;/p&gt;
&lt;p&gt;&amp;ldquo;OnLight Aurora includes a Low-Profit Limited Liability Company (L3C) component that functions independently from the City of Aurora. The City does not oversee, authorize, or assume responsibility for OnLight&amp;rsquo;s internal financial decisions or operational activities.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;This legal and operational separation is explicitly outlined in the Master Service Agreement between the City and OnLight. Any attempt by the City to direct or influence OnLight&amp;rsquo;s financial conduct beyond the scope of that agreement would not only breach contractual terms but could also raise legal concerns under applicable federal and state antitrust statutes, including the Sherman Act and the Illinois Antitrust Act, which prohibit improper coordination or interference between public entities and private organizations.&amp;rdquo;&lt;/p&gt;
&lt;h3&gt;How It&amp;rsquo;s Supposed to Work&lt;/h3&gt;
&lt;p&gt;OnLight Aurora was formed in 2012 to manage the city&amp;rsquo;s fiber optic network, with the goal of providing high-speed internet service to community anchors like schools and hospitals. When Irvin took over as Aurora mayor in 2017, Pegues became the city&amp;rsquo;s chief information officer, as well as leader of OnLight.&lt;/p&gt;
&lt;p&gt;Pegues told a podcast earlier this year that after two decades in the private sector, &amp;ldquo;I wanted a little something that, you know, makes me feel good and warm and fuzzy inside, and I just wanted to give back and pay it forward to my community.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;While OnLight earns revenue from its customers, it has also received more than $300,000 in direct city support over the years for a variety of initiatives. And while it&amp;rsquo;s not run by the city, Pegues, Irvin and former Ald. Sherman Jenkins served on its board, and documents and emails obtained by WTTW News show city staffers regularly working on OnLight-related issues.&lt;/p&gt;
&lt;p&gt;OnLight was formed as a nonprofit, with the for-profit arm Pegues referenced that&amp;rsquo;s known as an L3C, or a low-profit limited liability corporation. That allows OnLight to provide services to businesses in Aurora in addition to other tax-exempt entities.&lt;/p&gt;
&lt;p&gt;The arrangement came under scrutiny in 2022 as part of a&amp;nbsp;&lt;a href=&quot;https://www.chicagotribune.com/2022/06/23/contractors-asked-police-to-probe-top-aide-of-aurora-mayor-richard-irvin-over-aides-efforts-to-fund-wifes-business/&quot; target=&quot;_blank&quot; rel=&quot;noopener noreferrer&quot;&gt;Chicago Tribune investigative report&lt;/a&gt; detailing how two contractors complained to Aurora police that they were terminated after declining to sponsor one of Pegues&amp;rsquo; wife&amp;rsquo;s aforementioned events.&lt;/p&gt;
&lt;p&gt;In that same story, Pegues said he didn&amp;rsquo;t need board approval to sponsor his wife&amp;rsquo;s events because he solely oversaw the L3C without input from its parent nonprofit.&lt;/p&gt;
&lt;p&gt;But despite the fact that an L3C has greater leeway than a 501(c)(3), experts say it&amp;rsquo;s still subject to all the state and federal rules governing nonprofits &amp;mdash; including prohibitions against unreasonable spending that benefits an officer or director.&lt;/p&gt;
&lt;blockquote&gt;
&lt;p&gt;&amp;ldquo;The IRS takes these things very seriously, as does the attorney general.&amp;rdquo; - attorney Marc J. Lane&lt;/p&gt;
&lt;/blockquote&gt;
&lt;p&gt;Marc J. Lane, an attorney who drafted Illinois&amp;rsquo; L3C law, said the IRS can hold a nonprofit accountable for misdeeds that happen at an L3C.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;Mission is always the north star of these ventures, which must be charitable or educational significantly,&amp;rdquo; Lane said. &amp;ldquo;If somebody is charging personal expenses on a nonprofit credit card, there needs to have been a system in place to spot that and stop it, and there needs to be consequences. The IRS takes these things very seriously, as does the attorney general.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Asked for comment about inappropriate spending at OnLight, Irvin in an email wrote to&amp;nbsp; WTTW News: &amp;ldquo;As to the issue of On-Light&amp;rsquo;s directors misusing funds, that had absolutely nothing at all to do with me or the the City of Aurora. As stated, On-Light Aurora is a separate legal entity and its action cannot be attributed to the City of Aurora.&amp;rdquo; &amp;nbsp; &amp;ldquo;If the allegations that are being made against On-Light Aurora personnel are true, it is appalling, and it shouldn&amp;rsquo;t have happened.&amp;nbsp; But those allegations need to be addressed by the On-light corporate entity which governs On-Light Aurora.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;In a Facebook post about OnLight earlier this fall, Irvin said that he &amp;ldquo;was not a member of the finance committee and was not involved in the organization&amp;rsquo;s fiscal management or expenditure approvals.&amp;rdquo; An email provided to WTTW News by OnLight&amp;rsquo;s current leader shows Irvin in his capacity as board member voting to approve the credit limit increase.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;If the recent allegations regarding OnLight Aurora&amp;rsquo;s spending are proven true, those directly responsible should be held fully accountable. Any illegal use of funds would be deeply concerning and completely unacceptable,&amp;rdquo; Irvin wrote. &amp;ldquo;At no time did I personally or financially benefit from any alleged illegal expenditures or misuse of funds.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Former executive director Charles Baker did not respond to a request for comment.&lt;/p&gt;
&lt;h3&gt;What Happens Now?&lt;/h3&gt;
&lt;p&gt;Asked about fallout from potentially improper spending, Aurora Mayor Laesch said: &amp;ldquo;We&amp;rsquo;ve shared documents with law enforcement entities &amp;mdash; I&amp;rsquo;ll just leave it at that.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Laesch is now working to get OnLight back on its feet, and has tapped local IT professional Austin FitzCorbett as a volunteer director.&amp;nbsp;&lt;/p&gt;
&lt;p&gt;&lt;span class=&quot;image-pull-left non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/John_Laesch_CityofAurora.jpg&quot; width=&quot;630&quot; height=&quot;426&quot; /&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;&lt;span style=&quot;font-size: 10pt; color: #808080;&quot;&gt;&lt;em&gt;&lt;span class=&quot;image-pull-left non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;Current Aurora Mayor John Laesch. (City of Aurora)&lt;/span&gt;&lt;/span&gt;&lt;/em&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;FitzCorbett told WTTW News that when he saw the charges OnLight had racked up and the state of its financial controls, &amp;ldquo;it was definitely a &amp;lsquo;what in the world?&amp;rsquo; kind of moment.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;FitzCorbett said cost-saving efforts have helped reduce OnLight&amp;rsquo;s monthly expenses by nearly three-quarters, though the organization is still in a difficult financial position. And with officials saying OnLight faces nearly $1 million in debt, the city&amp;rsquo;s credit guarantee could leave taxpayers on the hook.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;If we don&amp;rsquo;t find a way to right the ship, to push it forward &amp;hellip; and over time recover revenue and decrease that debt, that debt falls onto the taxpayers,&amp;rdquo; FitzCorbett said. &amp;ldquo;That is not something that anybody wants.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Since leaving office, Irvin has maintained a public profile, sharing pictures of himself at various local events on his Facebook page and occasionally taking shots at his successor in the mayor&amp;rsquo;s office.&lt;/p&gt;
&lt;p&gt;Irvin and Pegues have also launched a consulting firm called Aurora Dynamic Solutions. That firm&amp;rsquo;s existence was first revealed by the Tribune during Irvin&amp;rsquo;s failed 2022 run for the GOP gubernatorial nomination, which a spokesman said would not become an active entity until after Irvin left office.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;We specialize in critical infrastructure modernization, smart city implementations, and cybersecurity solutions,&amp;rdquo; the company&amp;rsquo;s website homepage reads. &amp;ldquo;From telecommunications networks to public safety systems&amp;mdash;we deliver the expertise and innovation needed to build resilient, intelligent infrastructure.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;After leaving his post with the city and OnLight following Irvin&amp;rsquo;s defeat, Pegues told the Aurora Beacon-News that &amp;ldquo;we&amp;rsquo;re going to come back with a bang.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;&amp;ldquo;I&amp;rsquo;ll still be contributing to the growth and prosperity of the city of Aurora because this is my hometown,&amp;rdquo; Pegues said, &amp;ldquo;and I&amp;rsquo;m going to be here.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;&lt;em&gt;Contact Nick Blumberg: &lt;/em&gt;&lt;a href=&quot;mailto:nblumberg@wttw.com&quot; target=&quot;_blank&quot; rel=&quot;noopener noreferrer&quot;&gt;&lt;em&gt;nblumberg@wttw.com&lt;/em&gt;&lt;/a&gt;&lt;em&gt; | (773) 509-5434 | &lt;/em&gt;&lt;a href=&quot;https://twitter.com/ndblumberg&quot; target=&quot;_blank&quot; rel=&quot;noopener noreferrer&quot;&gt;&lt;em&gt;@ndblumberg&lt;/em&gt;&lt;/a&gt;&lt;/p&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Originally appeared at&amp;nbsp;&lt;a href=&quot;https://news.wttw.com/2025/11/19/ex-aurora-mayor-backed-450k-line-credit-without-council-approval-nonprofit-leader-racked&quot;&gt;https://news.wttw.com/2025/11/19/ex-aurora-mayor-backed-450k-line-credit-without-council-approval-nonprofit-leader-racked&lt;/a&gt;&amp;nbsp;</description>
      <content:encoded>&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;h4 style=&quot;font-weight: 400;&quot;&gt;Entrepreneurial nonprofits and for-profit social enterprises alike are embracing the opportunities the Low-profit Limited Liability Company (L3C) offers. &amp;nbsp;It can facilitate impact investments, optimize tax efficiency, and attract mission-aligned stakeholders. But what the L3C can&amp;rsquo;t do is help its managers dodge their fiduciary responsibilities. &amp;nbsp;&amp;nbsp;&lt;/h4&gt;
&lt;hr /&gt;
&lt;h3 class=&quot;article-title&quot;&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/wttw-logo-blk.png&quot; width=&quot;311&quot; height=&quot;81&quot; /&gt;&lt;/h3&gt;
&lt;h3 class=&quot;article-title&quot;&gt;Ex-Aurora Mayor Backed $450K Line of Credit Without Council Approval; Nonprofit Leader Racked Up Charges at ATMs and Strip Clubs&lt;/h3&gt;
&lt;h4 class=&quot;sub-headline&quot;&gt;Documents obtained by WTTW News shine light on finances.&lt;/h4&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/iStock-801244748.jpg&quot; width=&quot;630&quot; height=&quot;354&quot; /&gt;&lt;/p&gt;
&lt;div class=&quot;image-container&quot; style=&quot;text-align: left;&quot;&gt;&lt;span style=&quot;font-size: 10pt; color: #808080;&quot;&gt;&lt;em&gt;&lt;span class=&quot;image-full standalone-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;Downtown Aurora is pictured in a file photo. (Denis Tangney Jr. / iStock)&lt;/span&gt;&lt;/span&gt;&lt;/em&gt;&lt;/span&gt;&lt;/div&gt;
&lt;p&gt;OnLight Aurora, a city-supported nonprofit, aims to provide high speed internet to the west suburban community&amp;rsquo;s institutions, businesses and residents.&lt;/p&gt;
&lt;p&gt;It&amp;rsquo;s also in massive debt, with a long history of questionable expenditures.&lt;/p&gt;
&lt;p&gt;The nonprofit, according to an analysis by local officials and documents reviewed by WTTW News, is nearly $1 million in the red, operating at a $27,000 monthly deficit with some $20,000 in monthly debt service payments.&lt;/p&gt;
&lt;p&gt;Then there&amp;rsquo;s the debit card receipts.&amp;nbsp;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Those charges include tens of thousands of dollars in ATM cash withdrawals, additional thousands spent at strip clubs across the country and travel to places as far-flung as Madrid and Dublin, to name just a few.&lt;/p&gt;
&lt;p&gt;While the questionable financial decisions stretch back to 2018, it was in October 2024 that OnLight was in dire straits and almost out of cash.&lt;/p&gt;
&lt;p&gt;The organization had just $55,000 in cash on hand and owed more than $200,000 in unpaid bills accrued over several months.&lt;/p&gt;
&lt;p&gt;OnLight&amp;rsquo;s then-executive director, Charles Baker, wrote to then Aurora Mayor Richard Irvin that the organization was at &amp;ldquo;a critical juncture and urgently needs an infusion of capital to remain operational.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;At Baker&amp;rsquo;s request, and with the support of Irvin&amp;rsquo;s colleague and close lifelong friend Michael Pegues &amp;mdash; who served both as chairman and CEO of OnLight and at the same time chief information officer for the city of Aurora &amp;mdash; Irvin signed a letter saying that the city would guarantee a $450,000 credit line increase for OnLight.&lt;/p&gt;
&lt;p&gt;The credit infusion was approved by OnLight board members, including Irvin and Pegues, in a quickly arranged series of emails, according to documents shared with WTTW News.&lt;/p&gt;
&lt;p&gt;But the Aurora City Council never agreed to the move, even though the letter Irvin sent to OnLight&amp;rsquo;s bankers said the increase was in &amp;ldquo;anticipation of the finalization and approval of a Revised Master Service Agreement.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;In a statement to WTTW News, Irvin said that the city&amp;rsquo;s existing agreement with OnLight blessed the loan.&lt;/p&gt;
&lt;p&gt;But the October 2024 letter to OnLight&amp;rsquo;s lender signed by Irvin says the organization wants &amp;ldquo;to raise the current limit from $500,000 to a maximum of $950,000.&amp;rdquo; That $500,000 limit was approved by aldermen in 2015.&amp;nbsp;&lt;/p&gt;
&lt;p&gt;There is no record of Aurora&amp;rsquo;s aldermen approving that increase to the credit limit.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;Over my 8 years as Mayor, I made it a practice NOT to commit the City of Aurora to any financial obligations that were not approved by the City Council,&amp;rdquo; Irvin said in his statement to WTTW News. &amp;ldquo;I further made it a practice to have my corporation counsel review and give approval for any financial documents before I signed to ensure signing was appropriate.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;After WTTW News asked Irvin to comment on the discrepancy, former OnLight chairman Pegues responded via email, claiming that the letter bearing Irvin&amp;rsquo;s signature &amp;ldquo;appears to be inaccurate. The guarantee has not exceeded the $500,000 threshold. Although OnLight Aurora requested additional funds in 2024, previous loan amounts were paid down.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;That contradicts the October 2024 email from former executive director Baker to Irvin &amp;mdash; on which Pegues was copied &amp;mdash; saying that &amp;ldquo;(w)e have exhausted our existing line of credit and seek the City&amp;rsquo;s assistance in extending an additional $450K.&amp;rdquo;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;It also contradicts emails from Pegues to OnLight&amp;rsquo;s lender saying that he&amp;rsquo;s working on &amp;ldquo;the additional $450k extension&amp;rdquo; and another seeking the OnLight board&amp;rsquo;s approval &amp;ldquo;to raise the current limit from $500,000 to a maximum of $950,000.&amp;rdquo;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Statements from OnLight&amp;rsquo;s lender provided to WTTW News show outstanding loan balances well in excess of $500,000.&lt;/p&gt;
&lt;hr /&gt;
&lt;p&gt;&lt;span class=&quot;image-full non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/Screenshot_18-11-2025_164722_.jpeg&quot; width=&quot;629&quot; height=&quot;342&quot; /&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;&lt;span style=&quot;font-size: 10pt; color: #808080;&quot;&gt;&lt;em&gt;&lt;span class=&quot;image-full non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;A letter signed by Aurora Mayor Richard Irvin authorizing a line of credit increase. (City of Aurora)&lt;/span&gt;&lt;/span&gt;&lt;/em&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;WTTW News asked for further comment on the fact that Baker&amp;rsquo;s email disputes their claim &amp;mdash; and the fact that irrespective of whether OnLight never borrowed more than the agreement with the city stipulates, Irvin still appeared to have improperly represented that the city would guarantee an additional loan.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;(M)y signature was affixed to that letter in the normal course of business while doing business with a franchisee based on a master service agreement that was entered into with On-Light Aurora before I became Mayor,&amp;rdquo; Irvin wrote in an email. &amp;ldquo;I was advised by my staff that in allowing my signature to be placed on that letter, there would be no additional financial obligation to the City of Aurora as that letter&amp;rsquo;s intent was meant to fall within the limits of the master service agreement already approved by the Aurora City Council In fact I believe we stayed within those limitations. I disagree with the current administration&amp;rsquo;s assertion otherwise.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;That current administration is Aurora Mayor John Laesch, who unseated Irvin in April in a contentious runoff election.&amp;nbsp;&lt;/p&gt;
&lt;p&gt;&amp;ldquo;He basically put the city on the hook for $450,000 without seeking Council approval,&amp;rdquo; said Laesch. &amp;ldquo;Our city governance requires any expenditure over 50,000 (dollars) to go through the City Council for approval.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Laesch said his administration has found drafts of a revised agreement between the city and OnLight, but that they never made it to the City Council.&lt;/p&gt;
&lt;p&gt;The apparently unauthorized credit bump is the latest revelation about the finances of OnLight, which critics say has failed to live up to promises of widespread, high-speed connectivity while spending heavily.&lt;/p&gt;
&lt;p&gt;&lt;span class=&quot;image-full non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/Aurora_River_City.jpg&quot; width=&quot;630&quot; height=&quot;248&quot; /&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;&lt;span style=&quot;font-size: 10pt; color: #808080;&quot;&gt;&lt;em&gt;&lt;span class=&quot;image-full non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;A view of Aurora from the Fox River. (City of Aurora)&lt;/span&gt;&lt;/span&gt;&lt;/em&gt;&lt;/span&gt;&lt;/p&gt;
&lt;h3&gt;Strip Clubs, Cash Withdrawals and Travel&lt;/h3&gt;
&lt;p&gt;In September, Laesch outlined OnLight&amp;rsquo;s precarious financial position in a presentation to City Council members.&lt;/p&gt;
&lt;p&gt;In addition to the nearly $1 million in debt and regular monthly losses, officials also said they have uncovered a pattern of highly questionable spending on a card tied to OnLight &amp;mdash; expenses, those officials say, that were almost exclusively racked up by Irvin&amp;rsquo;s ally Pegues.&lt;/p&gt;
&lt;p&gt;Among the eyebrow-raising charges between 2018 and 2025:&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;More than $50,000 in ATM withdrawals were made, including nearly $15,000 in 2022 alone. Many were made in the Chicago area, however a bank statement provided to WTTW News also shows withdrawals in places including California, Florida and Maryland, as well as overseas in Madrid, Spain and Budapest, Hungary;&lt;/li&gt;
&lt;li&gt;Nearly $70,000 on entertainment and meals, including more than $7,000 at strip clubs in the Chicago area, Baltimore, Las Vegas, Los Angeles, and Miami and Pompano Beach, Florida;&lt;/li&gt;
&lt;li&gt;More than $70,000 on travel and transportation, with expenses in places including New York, California, Florida, and as far afield as Dublin;&lt;/li&gt;
&lt;li&gt;More than $100,000 on events and networking;&lt;/li&gt;
&lt;li&gt;$45,000 in sponsorships, including $13,700 to sponsor a comedy series put on by a company that Pegues&amp;rsquo; wife ran;&lt;/li&gt;
&lt;li&gt;and $850 on three political contributions that are illegal for a nonprofit to make, two of which never surfaced in candidate filings with the Illinois Board of Elections.&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&amp;ldquo;It&amp;rsquo;s just an enormous amount of money &amp;hellip; and there&amp;rsquo;s nothing to show for it,&amp;rdquo; said current Aurora Mayor John Laesch.&lt;/p&gt;
&lt;p&gt;The charges total some $337,000 between 2018 and 2025, despite the fact that OnLight actually lost clients during that time. The majority of charges were described on expense reports in broad terms like marketing expenses or meetings &amp;mdash; when expense reports were filed at all, leaders say.&lt;/p&gt;
&lt;p&gt;And it&amp;rsquo;s not just the political contributions that could run afoul of the legal system. Both federal and state law prohibit expenditures that unreasonably benefit a nonprofit&amp;rsquo;s officers and directors, which included Pegues.&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Sam Brunson, a professor at Loyola University Chicago&amp;rsquo;s School of Law who focuses on nonprofits, said expenses like travel, lodging and dinners don&amp;rsquo;t necessarily raise red flags since they can be legitimate ways to grow and support an organization. But things like ATM withdrawals without detailed expense reports and visits to strip clubs and cigar shops may not pass the smell test.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;The biggest potential concern is that essentially he&amp;rsquo;s using the nonprofit&amp;rsquo;s money to buy things for himself,&amp;rdquo; Brunson said. &amp;ldquo;It boils down to, was it a reasonable expenditure, and was the amount reasonable for (the nonprofit&amp;rsquo;s) purposes? &amp;hellip; If I&amp;rsquo;m the IRS or the (Illinois) secretary of state and I&amp;rsquo;m looking at it, I see cigar shop, I see gentleman&amp;rsquo;s club, and I&amp;rsquo;m going to be skeptical.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;There were also four charges at motels in Aurora and Naperville. Two of those charges occurred on the same date as cash withdrawals. A third was recorded on the same date as more than $1,000 in charges at a Stone Park strip club.&lt;/p&gt;
&lt;p&gt;When asked about the accusations of improper spending, Pegues sent WTTW News a statement that did not directly address the array of unusual charges. It reads in full:&lt;/p&gt;
&lt;p&gt;&amp;ldquo;OnLight Aurora includes a Low-Profit Limited Liability Company (L3C) component that functions independently from the City of Aurora. The City does not oversee, authorize, or assume responsibility for OnLight&amp;rsquo;s internal financial decisions or operational activities.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;This legal and operational separation is explicitly outlined in the Master Service Agreement between the City and OnLight. Any attempt by the City to direct or influence OnLight&amp;rsquo;s financial conduct beyond the scope of that agreement would not only breach contractual terms but could also raise legal concerns under applicable federal and state antitrust statutes, including the Sherman Act and the Illinois Antitrust Act, which prohibit improper coordination or interference between public entities and private organizations.&amp;rdquo;&lt;/p&gt;
&lt;h3&gt;How It&amp;rsquo;s Supposed to Work&lt;/h3&gt;
&lt;p&gt;OnLight Aurora was formed in 2012 to manage the city&amp;rsquo;s fiber optic network, with the goal of providing high-speed internet service to community anchors like schools and hospitals. When Irvin took over as Aurora mayor in 2017, Pegues became the city&amp;rsquo;s chief information officer, as well as leader of OnLight.&lt;/p&gt;
&lt;p&gt;Pegues told a podcast earlier this year that after two decades in the private sector, &amp;ldquo;I wanted a little something that, you know, makes me feel good and warm and fuzzy inside, and I just wanted to give back and pay it forward to my community.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;While OnLight earns revenue from its customers, it has also received more than $300,000 in direct city support over the years for a variety of initiatives. And while it&amp;rsquo;s not run by the city, Pegues, Irvin and former Ald. Sherman Jenkins served on its board, and documents and emails obtained by WTTW News show city staffers regularly working on OnLight-related issues.&lt;/p&gt;
&lt;p&gt;OnLight was formed as a nonprofit, with the for-profit arm Pegues referenced that&amp;rsquo;s known as an L3C, or a low-profit limited liability corporation. That allows OnLight to provide services to businesses in Aurora in addition to other tax-exempt entities.&lt;/p&gt;
&lt;p&gt;The arrangement came under scrutiny in 2022 as part of a&amp;nbsp;&lt;a href=&quot;https://www.chicagotribune.com/2022/06/23/contractors-asked-police-to-probe-top-aide-of-aurora-mayor-richard-irvin-over-aides-efforts-to-fund-wifes-business/&quot; target=&quot;_blank&quot; rel=&quot;noopener noreferrer&quot;&gt;Chicago Tribune investigative report&lt;/a&gt; detailing how two contractors complained to Aurora police that they were terminated after declining to sponsor one of Pegues&amp;rsquo; wife&amp;rsquo;s aforementioned events.&lt;/p&gt;
&lt;p&gt;In that same story, Pegues said he didn&amp;rsquo;t need board approval to sponsor his wife&amp;rsquo;s events because he solely oversaw the L3C without input from its parent nonprofit.&lt;/p&gt;
&lt;p&gt;But despite the fact that an L3C has greater leeway than a 501(c)(3), experts say it&amp;rsquo;s still subject to all the state and federal rules governing nonprofits &amp;mdash; including prohibitions against unreasonable spending that benefits an officer or director.&lt;/p&gt;
&lt;blockquote&gt;
&lt;p&gt;&amp;ldquo;The IRS takes these things very seriously, as does the attorney general.&amp;rdquo; - attorney Marc J. Lane&lt;/p&gt;
&lt;/blockquote&gt;
&lt;p&gt;Marc J. Lane, an attorney who drafted Illinois&amp;rsquo; L3C law, said the IRS can hold a nonprofit accountable for misdeeds that happen at an L3C.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;Mission is always the north star of these ventures, which must be charitable or educational significantly,&amp;rdquo; Lane said. &amp;ldquo;If somebody is charging personal expenses on a nonprofit credit card, there needs to have been a system in place to spot that and stop it, and there needs to be consequences. The IRS takes these things very seriously, as does the attorney general.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Asked for comment about inappropriate spending at OnLight, Irvin in an email wrote to&amp;nbsp; WTTW News: &amp;ldquo;As to the issue of On-Light&amp;rsquo;s directors misusing funds, that had absolutely nothing at all to do with me or the the City of Aurora. As stated, On-Light Aurora is a separate legal entity and its action cannot be attributed to the City of Aurora.&amp;rdquo; &amp;nbsp; &amp;ldquo;If the allegations that are being made against On-Light Aurora personnel are true, it is appalling, and it shouldn&amp;rsquo;t have happened.&amp;nbsp; But those allegations need to be addressed by the On-light corporate entity which governs On-Light Aurora.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;In a Facebook post about OnLight earlier this fall, Irvin said that he &amp;ldquo;was not a member of the finance committee and was not involved in the organization&amp;rsquo;s fiscal management or expenditure approvals.&amp;rdquo; An email provided to WTTW News by OnLight&amp;rsquo;s current leader shows Irvin in his capacity as board member voting to approve the credit limit increase.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;If the recent allegations regarding OnLight Aurora&amp;rsquo;s spending are proven true, those directly responsible should be held fully accountable. Any illegal use of funds would be deeply concerning and completely unacceptable,&amp;rdquo; Irvin wrote. &amp;ldquo;At no time did I personally or financially benefit from any alleged illegal expenditures or misuse of funds.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Former executive director Charles Baker did not respond to a request for comment.&lt;/p&gt;
&lt;h3&gt;What Happens Now?&lt;/h3&gt;
&lt;p&gt;Asked about fallout from potentially improper spending, Aurora Mayor Laesch said: &amp;ldquo;We&amp;rsquo;ve shared documents with law enforcement entities &amp;mdash; I&amp;rsquo;ll just leave it at that.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Laesch is now working to get OnLight back on its feet, and has tapped local IT professional Austin FitzCorbett as a volunteer director.&amp;nbsp;&lt;/p&gt;
&lt;p&gt;&lt;span class=&quot;image-pull-left non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;&lt;img src=&quot;http://www.marcjlane.com/clientuploads/Lane Report/202601/John_Laesch_CityofAurora.jpg&quot; width=&quot;630&quot; height=&quot;426&quot; /&gt;&lt;/span&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;&lt;span style=&quot;font-size: 10pt; color: #808080;&quot;&gt;&lt;em&gt;&lt;span class=&quot;image-pull-left non-gallery-image&quot;&gt;&lt;span class=&quot;caption&quot;&gt;Current Aurora Mayor John Laesch. (City of Aurora)&lt;/span&gt;&lt;/span&gt;&lt;/em&gt;&lt;/span&gt;&lt;/p&gt;
&lt;p&gt;FitzCorbett told WTTW News that when he saw the charges OnLight had racked up and the state of its financial controls, &amp;ldquo;it was definitely a &amp;lsquo;what in the world?&amp;rsquo; kind of moment.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;FitzCorbett said cost-saving efforts have helped reduce OnLight&amp;rsquo;s monthly expenses by nearly three-quarters, though the organization is still in a difficult financial position. And with officials saying OnLight faces nearly $1 million in debt, the city&amp;rsquo;s credit guarantee could leave taxpayers on the hook.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;If we don&amp;rsquo;t find a way to right the ship, to push it forward &amp;hellip; and over time recover revenue and decrease that debt, that debt falls onto the taxpayers,&amp;rdquo; FitzCorbett said. &amp;ldquo;That is not something that anybody wants.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;Since leaving office, Irvin has maintained a public profile, sharing pictures of himself at various local events on his Facebook page and occasionally taking shots at his successor in the mayor&amp;rsquo;s office.&lt;/p&gt;
&lt;p&gt;Irvin and Pegues have also launched a consulting firm called Aurora Dynamic Solutions. That firm&amp;rsquo;s existence was first revealed by the Tribune during Irvin&amp;rsquo;s failed 2022 run for the GOP gubernatorial nomination, which a spokesman said would not become an active entity until after Irvin left office.&lt;/p&gt;
&lt;p&gt;&amp;ldquo;We specialize in critical infrastructure modernization, smart city implementations, and cybersecurity solutions,&amp;rdquo; the company&amp;rsquo;s website homepage reads. &amp;ldquo;From telecommunications networks to public safety systems&amp;mdash;we deliver the expertise and innovation needed to build resilient, intelligent infrastructure.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;After leaving his post with the city and OnLight following Irvin&amp;rsquo;s defeat, Pegues told the Aurora Beacon-News that &amp;ldquo;we&amp;rsquo;re going to come back with a bang.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;&amp;ldquo;I&amp;rsquo;ll still be contributing to the growth and prosperity of the city of Aurora because this is my hometown,&amp;rdquo; Pegues said, &amp;ldquo;and I&amp;rsquo;m going to be here.&amp;rdquo;&lt;/p&gt;
&lt;p&gt;&lt;em&gt;Contact Nick Blumberg: &lt;/em&gt;&lt;a href=&quot;mailto:nblumberg@wttw.com&quot; target=&quot;_blank&quot; rel=&quot;noopener noreferrer&quot;&gt;&lt;em&gt;nblumberg@wttw.com&lt;/em&gt;&lt;/a&gt;&lt;em&gt; | (773) 509-5434 | &lt;/em&gt;&lt;a href=&quot;https://twitter.com/ndblumberg&quot; target=&quot;_blank&quot; rel=&quot;noopener noreferrer&quot;&gt;&lt;em&gt;@ndblumberg&lt;/em&gt;&lt;/a&gt;&lt;/p&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;Originally appeared at&amp;nbsp;&lt;a href=&quot;https://news.wttw.com/2025/11/19/ex-aurora-mayor-backed-450k-line-credit-without-council-approval-nonprofit-leader-racked&quot;&gt;https://news.wttw.com/2025/11/19/ex-aurora-mayor-backed-450k-line-credit-without-council-approval-nonprofit-leader-racked&lt;/a&gt;&amp;nbsp;&lt;/p&gt;</content:encoded>
      <category>In the News</category>
      <pubDate>Fri, 02 Jan 2026 10:00:00 -0600</pubDate>
      <link>http://www.marcjlane.com/news/2026/01/02/in-the-news/ex-aurora-mayor-backed-450k-line-of-credit-without-council-approval-nonprofit-leader-racked-up-charges-at-atms-and-strip-clubs/</link>
    </item>
    <item>
      <guid isPermaLink="false">http://www.marcjlane.com/index.php?src=news&amp;refno=691&amp;category=2025 Lane Reports</guid>
      <title>Charitable Donation Opportunities for December 2025 - and 2026 and Beyond</title>
      <description>If you are planning to make a significant contribution to charity, this month &amp;ndash; December 2025 &amp;ndash; may be a particularly good time to do so. Admittedly, charitable donations reach their peak in December every year &amp;ndash; not just because of the holiday spirit, but also because taxpayers are seeking to claim deductions for charitable contributions made before the end of the year. Changes in tax law make this month a particularly good time to donate for many taxpayers, but other opportunities for charitable giving will open up starting January 1, 2026.&lt;/p&gt;
&lt;p&gt;These changes came from H.R. 1 (2025), originally known as the &amp;ldquo;One Big Beautiful Bill Act,&amp;rdquo; enacted on July 4 of this year. Among the many changes made by this law were provisions relating to the deductibility of charitable contributions.&lt;/p&gt;
&lt;h3&gt;Limitation on deductibility of charitable contributions&lt;/h3&gt;
&lt;p&gt;Specifically, for individuals, effective in the year 2026, any charitable contribution which would otherwise be allowed as a deduction shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5% of the taxpayer&amp;rsquo;s adjusted gross income for the taxable year. So, for example, suppose that a taxpayer has $100,000 of gross income in 2026 and makes $5,000 in charitable contributions. For that taxpayer, 0.5% of their adjusted gross income would be $500. Therefore, the taxpayer would be able to claim as a deduction only $4,500 of the $5,000 charitable contributions they made.&lt;/p&gt;
&lt;p&gt;The result of this change is that charitable contributions made in 2025 will provide a greater tax benefit to a taxpayer than charitable contributions made in 2026.&lt;/p&gt;
&lt;h3&gt;Limitation on itemized deductions for high-income taxpayers&lt;/h3&gt;
&lt;p&gt;In addition, starting in 2026, high-income taxpayers will benefit less from their itemized deductions than they otherwise would have. Currently, in effect, every dollar more in itemized deductions means (for example) 22 cents more in tax savings for a taxpayer in the 22% bracket, 32 cents more in tax savings for a taxpayer in the 32% bracket, up to 37 cents more in tax savings for a taxpayer in the 37% bracket. However, starting in 2026, taxpayers in the 37% bracket will have their tax savings capped at 35 cents on the dollar for itemized deductions. (The 37% tax bracket for 2026 will be for single taxpayers with taxable income of at least $640,601 and married couples filing jointly with taxable income of at least $768,701.)&lt;/p&gt;
&lt;p&gt;For those high-income taxpayers, this change will apply to all itemized deductions &amp;ndash; not only charitable contributions, but also medical and dental expenses, state and local taxes, and mortgage interest. Hence, people in the highest tax bracket would benefit from making charitable contributions (and/or making payments for other itemizable deductions) before the end of 2025 rather than waiting until 2026.&lt;/p&gt;
&lt;h3&gt;Charitable deduction for non-itemizers&lt;/h3&gt;
&lt;p&gt;On the other hand, most taxpayers don&amp;rsquo;t have enough deductions to claim to warrant itemizing and thus claim the standard deduction. In 2025, the standard deduction is $15,750 for single taxpayers, or $31,500 for married taxpayers filing jointly; those amounts will increase in 2026 to $16,100 for single taxpayers and $32,200 for married taxpayers filing jointly. And for taxpayers who claim the standard deduction, a new opportunity for charitable giving will open up in 2026.&lt;/p&gt;
&lt;p&gt;Starting in 2026, taxpayers who don&amp;rsquo;t itemize deductions will be allowed to claim charitable contributions up to $1,000 as a deduction if they are single, or up to $2,000 for married taxpayers filing jointly. To qualify as a deductible contribution under this provision, a donation must be made in cash (rather than in property). In addition, the donation cannot be made to a donor-advised fund, nor to an organization which is organized and operated for the benefit of, to perform the functions of, or to carry out the purposes of one or more other public charities.&lt;/p&gt;
&lt;h3&gt;Scholarship tax credits&lt;/h3&gt;
&lt;p&gt;Furthermore, a new tax benefit will begin in 2026 for a specific type of charitable contribution. In summary, this benefit is intended to support school choice by encouraging the establishment and funding of organizations which provide scholarships to private schools for students from elementary school through high school.&lt;/p&gt;
&lt;p&gt;A tax &lt;em&gt;credit&lt;/em&gt; &amp;ndash; rather than a deduction &amp;ndash; will be allowed for donations to scholarship-granting organizations serving elementary and secondary school students. This tax credit will apply to donations up to $1,700 per year. And because this will be a tax credit rather than a deduction, donors will see their taxes reduced by $1 for every dollar they donate. (Double benefits are not allowed; a taxpayer can&amp;rsquo;t claim a charitable deduction for contributions that they also claim for the tax credit. Nor can a taxpayer claim this credit to the extent that the taxpayer receives a state tax credit for the same contribution.)&lt;/p&gt;
&lt;p&gt;There are a number of requirements that must be satisfied for contributors to a scholarship-granting organization to receive the tax credit:&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;
&lt;p&gt;The organization must be a tax-exempt public charity (not a private foundation).&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization must operate within a particular state or the District of Columbia.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization must use the contribution solely to fund scholarships for eligible students in its own state. An eligible student must be a member of a household whose income is no more than 300% of the area&amp;rsquo;s median gross income and must be eligible to enroll in a public elementary or secondary school.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization must provide scholarships to 10 or more students who do not all attend the same school.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization must spend at least 90% of its income on scholarships for eligible students.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization cannot provide scholarships for any expenses other than qualified elementary or secondary education expenses.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;If the organization receives contributions for other purposes, it must keep the contributions to fund scholarships for eligible students in a separate account to prevent commingling of funds.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization cannot earmark or set aside contributions for scholarships on behalf of any particular student.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization must prioritize scholarships to eligible students who were awarded scholarships for the previous school year, followed by eligible students who have a sibling who was awarded a scholarship from the organization.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization must verify the annual household income and family size of applicants to ensure that recipient students meet the requirement of being members of a household whose income is no more than 300% of the area&amp;rsquo;s median gross income and limit scholarships to students who meet that criterion.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization cannot give scholarships to &amp;ldquo;disqualified persons,&amp;rdquo; such as children or grandchildren of its directors or officers.&lt;/p&gt;
&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;The state where the organization operates must voluntarily elect to participate by providing the Treasury Department with a list of the scholarship-granting organizations that are located in the State.&lt;/p&gt;
&lt;p&gt;The last of these criteria &amp;ndash; requiring that a state voluntarily participate before a scholarship-granting organization can receive donations eligible for the tax credit &amp;ndash; will allow each state to decide whether or not to encourage school choice by providing the list of organizations within the state. That said, even if a state chooses not to participate, taxpayers who live in that state will still have the opportunity to use the tax credit by donating to scholarship-granting organizations in other states.&lt;/p&gt;
&lt;p&gt;If you&amp;rsquo;re interested in further advice about how to benefit from these changes in tax law, please feel free to contact Marc Lane in confidence at &lt;a href=&quot;mailto:mlane@marcjlane.com&quot;&gt;mlane@marcjlane.com&lt;/a&gt; or 312/800-372-1040.&lt;/p&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;&lt;em&gt;Joshua S. Kreitzer is a Senior Associate Attorney with The Law Offices of Marc J. Lane, P.C.&lt;/em&gt;</description>
      <content:encoded>&lt;p&gt;If you are planning to make a significant contribution to charity, this month &amp;ndash; December 2025 &amp;ndash; may be a particularly good time to do so. Admittedly, charitable donations reach their peak in December every year &amp;ndash; not just because of the holiday spirit, but also because taxpayers are seeking to claim deductions for charitable contributions made before the end of the year. Changes in tax law make this month a particularly good time to donate for many taxpayers, but other opportunities for charitable giving will open up starting January 1, 2026.&lt;/p&gt;
&lt;p&gt;These changes came from H.R. 1 (2025), originally known as the &amp;ldquo;One Big Beautiful Bill Act,&amp;rdquo; enacted on July 4 of this year. Among the many changes made by this law were provisions relating to the deductibility of charitable contributions.&lt;/p&gt;
&lt;h3&gt;Limitation on deductibility of charitable contributions&lt;/h3&gt;
&lt;p&gt;Specifically, for individuals, effective in the year 2026, any charitable contribution which would otherwise be allowed as a deduction shall be allowed only to the extent that the aggregate of such contributions exceeds 0.5% of the taxpayer&amp;rsquo;s adjusted gross income for the taxable year. So, for example, suppose that a taxpayer has $100,000 of gross income in 2026 and makes $5,000 in charitable contributions. For that taxpayer, 0.5% of their adjusted gross income would be $500. Therefore, the taxpayer would be able to claim as a deduction only $4,500 of the $5,000 charitable contributions they made.&lt;/p&gt;
&lt;p&gt;The result of this change is that charitable contributions made in 2025 will provide a greater tax benefit to a taxpayer than charitable contributions made in 2026.&lt;/p&gt;
&lt;h3&gt;Limitation on itemized deductions for high-income taxpayers&lt;/h3&gt;
&lt;p&gt;In addition, starting in 2026, high-income taxpayers will benefit less from their itemized deductions than they otherwise would have. Currently, in effect, every dollar more in itemized deductions means (for example) 22 cents more in tax savings for a taxpayer in the 22% bracket, 32 cents more in tax savings for a taxpayer in the 32% bracket, up to 37 cents more in tax savings for a taxpayer in the 37% bracket. However, starting in 2026, taxpayers in the 37% bracket will have their tax savings capped at 35 cents on the dollar for itemized deductions. (The 37% tax bracket for 2026 will be for single taxpayers with taxable income of at least $640,601 and married couples filing jointly with taxable income of at least $768,701.)&lt;/p&gt;
&lt;p&gt;For those high-income taxpayers, this change will apply to all itemized deductions &amp;ndash; not only charitable contributions, but also medical and dental expenses, state and local taxes, and mortgage interest. Hence, people in the highest tax bracket would benefit from making charitable contributions (and/or making payments for other itemizable deductions) before the end of 2025 rather than waiting until 2026.&lt;/p&gt;
&lt;h3&gt;Charitable deduction for non-itemizers&lt;/h3&gt;
&lt;p&gt;On the other hand, most taxpayers don&amp;rsquo;t have enough deductions to claim to warrant itemizing and thus claim the standard deduction. In 2025, the standard deduction is $15,750 for single taxpayers, or $31,500 for married taxpayers filing jointly; those amounts will increase in 2026 to $16,100 for single taxpayers and $32,200 for married taxpayers filing jointly. And for taxpayers who claim the standard deduction, a new opportunity for charitable giving will open up in 2026.&lt;/p&gt;
&lt;p&gt;Starting in 2026, taxpayers who don&amp;rsquo;t itemize deductions will be allowed to claim charitable contributions up to $1,000 as a deduction if they are single, or up to $2,000 for married taxpayers filing jointly. To qualify as a deductible contribution under this provision, a donation must be made in cash (rather than in property). In addition, the donation cannot be made to a donor-advised fund, nor to an organization which is organized and operated for the benefit of, to perform the functions of, or to carry out the purposes of one or more other public charities.&lt;/p&gt;
&lt;h3&gt;Scholarship tax credits&lt;/h3&gt;
&lt;p&gt;Furthermore, a new tax benefit will begin in 2026 for a specific type of charitable contribution. In summary, this benefit is intended to support school choice by encouraging the establishment and funding of organizations which provide scholarships to private schools for students from elementary school through high school.&lt;/p&gt;
&lt;p&gt;A tax &lt;em&gt;credit&lt;/em&gt; &amp;ndash; rather than a deduction &amp;ndash; will be allowed for donations to scholarship-granting organizations serving elementary and secondary school students. This tax credit will apply to donations up to $1,700 per year. And because this will be a tax credit rather than a deduction, donors will see their taxes reduced by $1 for every dollar they donate. (Double benefits are not allowed; a taxpayer can&amp;rsquo;t claim a charitable deduction for contributions that they also claim for the tax credit. Nor can a taxpayer claim this credit to the extent that the taxpayer receives a state tax credit for the same contribution.)&lt;/p&gt;
&lt;p&gt;There are a number of requirements that must be satisfied for contributors to a scholarship-granting organization to receive the tax credit:&lt;/p&gt;
&lt;ul&gt;
&lt;li&gt;
&lt;p&gt;The organization must be a tax-exempt public charity (not a private foundation).&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization must operate within a particular state or the District of Columbia.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization must use the contribution solely to fund scholarships for eligible students in its own state. An eligible student must be a member of a household whose income is no more than 300% of the area&amp;rsquo;s median gross income and must be eligible to enroll in a public elementary or secondary school.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization must provide scholarships to 10 or more students who do not all attend the same school.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization must spend at least 90% of its income on scholarships for eligible students.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization cannot provide scholarships for any expenses other than qualified elementary or secondary education expenses.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;If the organization receives contributions for other purposes, it must keep the contributions to fund scholarships for eligible students in a separate account to prevent commingling of funds.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization cannot earmark or set aside contributions for scholarships on behalf of any particular student.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization must prioritize scholarships to eligible students who were awarded scholarships for the previous school year, followed by eligible students who have a sibling who was awarded a scholarship from the organization.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization must verify the annual household income and family size of applicants to ensure that recipient students meet the requirement of being members of a household whose income is no more than 300% of the area&amp;rsquo;s median gross income and limit scholarships to students who meet that criterion.&lt;/p&gt;
&lt;/li&gt;
&lt;li&gt;
&lt;p&gt;The organization cannot give scholarships to &amp;ldquo;disqualified persons,&amp;rdquo; such as children or grandchildren of its directors or officers.&lt;/p&gt;
&lt;/li&gt;
&lt;/ul&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;The state where the organization operates must voluntarily elect to participate by providing the Treasury Department with a list of the scholarship-granting organizations that are located in the State.&lt;/p&gt;
&lt;p&gt;The last of these criteria &amp;ndash; requiring that a state voluntarily participate before a scholarship-granting organization can receive donations eligible for the tax credit &amp;ndash; will allow each state to decide whether or not to encourage school choice by providing the list of organizations within the state. That said, even if a state chooses not to participate, taxpayers who live in that state will still have the opportunity to use the tax credit by donating to scholarship-granting organizations in other states.&lt;/p&gt;
&lt;p&gt;If you&amp;rsquo;re interested in further advice about how to benefit from these changes in tax law, please feel free to contact Marc Lane in confidence at &lt;a href=&quot;mailto:mlane@marcjlane.com&quot;&gt;mlane@marcjlane.com&lt;/a&gt; or 312/800-372-1040.&lt;/p&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;&lt;em&gt;Joshua S. Kreitzer is a Senior Associate Attorney with The Law Offices of Marc J. Lane, P.C.&lt;/em&gt;&lt;/p&gt;</content:encoded>
      <category>2025 Lane Reports</category>
      <pubDate>Mon, 01 Dec 2025 10:00:00 -0600</pubDate>
      <link>http://www.marcjlane.com/news/2025/12/01/2025-lane-reports/charitable-donation-opportunities-for-december-2025-and-2026-and-beyond/</link>
    </item>
    <item>
      <guid isPermaLink="false">http://www.marcjlane.com/index.php?src=news&amp;refno=690&amp;category=2025 Lane Reports</guid>
      <title>The Bull Market is 3 Years Old - Now What?</title>
      <description>Just a few weeks ago, the Wall Street Journal ran an article titled &amp;ldquo;Are there any stock market gains left for the fourth quarter?&amp;rdquo; Although we still are bullish for the intermediate and for the long term, we think that it is foolish to try guessing what any ensuing three-month period will do. Stocks don&amp;rsquo;t have a fixed ceiling for full-year gains. Full year returns ranged from -40.7% drop in 2008 to a 41.9% gain in 1986, using the MSCI World Index as the benchmark. Through September 30 this year, the index is ahead 16.9%. Over the past 55 years, 22 of them bested this year&amp;rsquo;s year-to-date return. Stock market returns are not serially correlated. This means that what has already happened has no bearing on what is yet to take place. We believe the bull will run until euphoria brings it to an end, as happened in March, 2000. The late Sir John Templeton quipped: &quot;Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.&quot; Also possible, some unforeseen incident such as happened on September 11, 2001. What has happened in the past will have no bearing on what takes place going forward.&lt;/p&gt;
&lt;p&gt;So where do we stand now? We think that global stocks offer value. As worldwide markets are challenged in an environment of trade wars, higher interest rates, ongoing conflict in the Middle East, and the lingering battle between Russia and Ukraine, one thing has not changed: U.S. stocks are more expensive than global stocks. And with the run-up in stock prices since 2023, U.S. stocks are even more expensive. Consider P/E ratios. The trailing P/E ratio on the S&amp;amp;P 500 is 28, above the global average of 19. Yields tell a similar story. The dividend yield for the S&amp;amp;P 500 is 1.1%, versus the global average of 2.2%. Generally, investors are willing to pay a higher price for North American securities because of the transparency of the U.S. financial system as well as the liquidity of U.S. markets. Indeed, global returns can be volatile, given currency, security, and geopolitical risks. U.S. stocks have outperformed Europe Asia Far East (EFA) stocks over the past five years. The tide is turning a bit in 2025, as global investors respond to the uncertainty over U.S. trade policy and as global central banks lower interest rates. Year to date, global stocks are up 24% while U.S. stocks are up 15%. Given expectations for more trade-related volatility, we think diversified investors should have 15%-20% of their equity allocations in international stocks to take advantage of the value, and we have been adding global stocks to our recommendations.&lt;/p&gt;
&lt;h3&gt;Interest Rates&lt;/h3&gt;
&lt;p&gt;Last month the Fed cut the fed-funds target rate by a quarter percentage point, as was widely expected, bringing it down to 4.00% - 4.25%. Many pundits saw this as critical for stocks and the US economy. We believe the effects are smaller than many think. Many think there will be two more cuts before year-end. In 2022 Fed guidance early that year argued for no hikes and only &amp;ldquo;transitory&amp;rdquo; inflation. However, it didn&amp;rsquo;t work out that way. The Fed embarked on a series of rate increases soon thereafter. We believe in watching what the Fed does, and not what it says.&lt;/p&gt;
&lt;p&gt;With the September core CPI inflation rate at 0.2% and the year/year inflation at 3.0%, inflation has been tamed. Since this is above the 2.0% target, the Fed&amp;rsquo;s work is not finished.&lt;/p&gt;
&lt;p&gt;Although more rate cuts could be fine, they are not necessary for stocks to continue to do well. There is little to suggest there is any economic trouble ahead. We expect another rate cut when the Fed meets on Wednesday, October 29. The result should be a steeper yield curve indicating solid economic growth over the intermediate term. Recall, in 2008 the Fed&amp;rsquo;s rate cuts and quantitative easing didn&amp;rsquo;t end the financial-crisis bear market. In 2001, rate cuts did nothing to stop a bear market that didn&amp;rsquo;t end until October 2002.&lt;/p&gt;
&lt;p&gt;The Fed&amp;rsquo;s short-term rate cuts do not necessarily mean lower mortgage rates either. Maybe, but maybe not. The same has happened in Europe, where eight European Central Bank cuts haven&amp;rsquo;t meant lower long yields. The point here is not to tie your market views solely on what the Fed does. Interest rates are important, but so are many other factors such as corporate earnings and valuations.&lt;/p&gt;
&lt;h3&gt;Tariffs Re-visited&lt;/h3&gt;
&lt;p&gt;It is about six months since Liberation Day and tariffs fears have waxed larger than their reality. The markets were spooked in April and since then stocks have scaled to new highs. Tariffs impacts have not been spread evenly. Small businesses and farmers are struggling with higher costs, as are consumers.&lt;/p&gt;
&lt;p&gt;As we professed last Spring, tariffs are hitting the US harder than our trading partners. The strict tariffs on aluminum and steel, which are intended to &amp;ldquo;protect&amp;rdquo; American production have not boosted domestic output as US steel and aluminum production remain below their pre-pandemic averages. The more you tax something, the less you get of it. When Trump hiked steel and aluminum tariffs in his first administration, it caused the affected industries&amp;rsquo; profits to shrink. It doesn&amp;rsquo;t look any different this time either as US steel and aluminum stocks are lagging their foreign counterparts.&lt;/p&gt;
&lt;p&gt;However, these industries are a small slice of the economy. US primary metal manufacturing is less than 0.5% of GDP. Businesses and consumers buying from protected industries will face higher costs. Ultimately the result is weaker demand and lower growth of GDP.&lt;/p&gt;
&lt;h3&gt;The Stock Market&lt;/h3&gt;
&lt;p&gt;The technology sector is speculative right now. Will earnings remain strong, and will AI drive an acceleration in productivity that will validate today&amp;rsquo;s lofty valuations? Employment still is growing, although weakening. Inflation remains sticky yet market sentiment has not reached euphoric levels. Only time will tell.&lt;/p&gt;
&lt;p&gt;Market averages are all at or near the high end of historical averages, whether price-earnings, price-sales, or market cap to GDP. We recommend avoiding excessive risks, and emphasizing high-quality, dividend paying equities, and overseas exposure.&lt;/p&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;&lt;em&gt;Ken Green is the Senior Vice President and Director of Investments at Marc J. Lane &amp;amp; Company, the investment affiliate of The Law Offices of Marc J. Lane, P.C.&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;---&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;We invite you to discuss your investment strategy in confidence, Please feel free to reach out Marc Lane at 312/800-372-1040 or &lt;a href=&quot;mailto:mlane@marcjlane.com&quot;&gt;mlane@marcjlane.com&lt;/a&gt;.&lt;/strong&gt;</description>
      <content:encoded>&lt;p&gt;Just a few weeks ago, the Wall Street Journal ran an article titled &amp;ldquo;Are there any stock market gains left for the fourth quarter?&amp;rdquo; Although we still are bullish for the intermediate and for the long term, we think that it is foolish to try guessing what any ensuing three-month period will do. Stocks don&amp;rsquo;t have a fixed ceiling for full-year gains. Full year returns ranged from -40.7% drop in 2008 to a 41.9% gain in 1986, using the MSCI World Index as the benchmark. Through September 30 this year, the index is ahead 16.9%. Over the past 55 years, 22 of them bested this year&amp;rsquo;s year-to-date return. Stock market returns are not serially correlated. This means that what has already happened has no bearing on what is yet to take place. We believe the bull will run until euphoria brings it to an end, as happened in March, 2000. The late Sir John Templeton quipped: &quot;Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.&quot; Also possible, some unforeseen incident such as happened on September 11, 2001. What has happened in the past will have no bearing on what takes place going forward.&lt;/p&gt;
&lt;p&gt;So where do we stand now? We think that global stocks offer value. As worldwide markets are challenged in an environment of trade wars, higher interest rates, ongoing conflict in the Middle East, and the lingering battle between Russia and Ukraine, one thing has not changed: U.S. stocks are more expensive than global stocks. And with the run-up in stock prices since 2023, U.S. stocks are even more expensive. Consider P/E ratios. The trailing P/E ratio on the S&amp;amp;P 500 is 28, above the global average of 19. Yields tell a similar story. The dividend yield for the S&amp;amp;P 500 is 1.1%, versus the global average of 2.2%. Generally, investors are willing to pay a higher price for North American securities because of the transparency of the U.S. financial system as well as the liquidity of U.S. markets. Indeed, global returns can be volatile, given currency, security, and geopolitical risks. U.S. stocks have outperformed Europe Asia Far East (EFA) stocks over the past five years. The tide is turning a bit in 2025, as global investors respond to the uncertainty over U.S. trade policy and as global central banks lower interest rates. Year to date, global stocks are up 24% while U.S. stocks are up 15%. Given expectations for more trade-related volatility, we think diversified investors should have 15%-20% of their equity allocations in international stocks to take advantage of the value, and we have been adding global stocks to our recommendations.&lt;/p&gt;
&lt;h3&gt;Interest Rates&lt;/h3&gt;
&lt;p&gt;Last month the Fed cut the fed-funds target rate by a quarter percentage point, as was widely expected, bringing it down to 4.00% - 4.25%. Many pundits saw this as critical for stocks and the US economy. We believe the effects are smaller than many think. Many think there will be two more cuts before year-end. In 2022 Fed guidance early that year argued for no hikes and only &amp;ldquo;transitory&amp;rdquo; inflation. However, it didn&amp;rsquo;t work out that way. The Fed embarked on a series of rate increases soon thereafter. We believe in watching what the Fed does, and not what it says.&lt;/p&gt;
&lt;p&gt;With the September core CPI inflation rate at 0.2% and the year/year inflation at 3.0%, inflation has been tamed. Since this is above the 2.0% target, the Fed&amp;rsquo;s work is not finished.&lt;/p&gt;
&lt;p&gt;Although more rate cuts could be fine, they are not necessary for stocks to continue to do well. There is little to suggest there is any economic trouble ahead. We expect another rate cut when the Fed meets on Wednesday, October 29. The result should be a steeper yield curve indicating solid economic growth over the intermediate term. Recall, in 2008 the Fed&amp;rsquo;s rate cuts and quantitative easing didn&amp;rsquo;t end the financial-crisis bear market. In 2001, rate cuts did nothing to stop a bear market that didn&amp;rsquo;t end until October 2002.&lt;/p&gt;
&lt;p&gt;The Fed&amp;rsquo;s short-term rate cuts do not necessarily mean lower mortgage rates either. Maybe, but maybe not. The same has happened in Europe, where eight European Central Bank cuts haven&amp;rsquo;t meant lower long yields. The point here is not to tie your market views solely on what the Fed does. Interest rates are important, but so are many other factors such as corporate earnings and valuations.&lt;/p&gt;
&lt;h3&gt;Tariffs Re-visited&lt;/h3&gt;
&lt;p&gt;It is about six months since Liberation Day and tariffs fears have waxed larger than their reality. The markets were spooked in April and since then stocks have scaled to new highs. Tariffs impacts have not been spread evenly. Small businesses and farmers are struggling with higher costs, as are consumers.&lt;/p&gt;
&lt;p&gt;As we professed last Spring, tariffs are hitting the US harder than our trading partners. The strict tariffs on aluminum and steel, which are intended to &amp;ldquo;protect&amp;rdquo; American production have not boosted domestic output as US steel and aluminum production remain below their pre-pandemic averages. The more you tax something, the less you get of it. When Trump hiked steel and aluminum tariffs in his first administration, it caused the affected industries&amp;rsquo; profits to shrink. It doesn&amp;rsquo;t look any different this time either as US steel and aluminum stocks are lagging their foreign counterparts.&lt;/p&gt;
&lt;p&gt;However, these industries are a small slice of the economy. US primary metal manufacturing is less than 0.5% of GDP. Businesses and consumers buying from protected industries will face higher costs. Ultimately the result is weaker demand and lower growth of GDP.&lt;/p&gt;
&lt;h3&gt;The Stock Market&lt;/h3&gt;
&lt;p&gt;The technology sector is speculative right now. Will earnings remain strong, and will AI drive an acceleration in productivity that will validate today&amp;rsquo;s lofty valuations? Employment still is growing, although weakening. Inflation remains sticky yet market sentiment has not reached euphoric levels. Only time will tell.&lt;/p&gt;
&lt;p&gt;Market averages are all at or near the high end of historical averages, whether price-earnings, price-sales, or market cap to GDP. We recommend avoiding excessive risks, and emphasizing high-quality, dividend paying equities, and overseas exposure.&lt;/p&gt;
&lt;p&gt;&amp;nbsp;&lt;/p&gt;
&lt;p&gt;&lt;em&gt;Ken Green is the Senior Vice President and Director of Investments at Marc J. Lane &amp;amp; Company, the investment affiliate of The Law Offices of Marc J. Lane, P.C.&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;---&lt;/p&gt;
&lt;p&gt;&lt;strong&gt;We invite you to discuss your investment strategy in confidence, Please feel free to reach out Marc Lane at 312/800-372-1040 or &lt;a href=&quot;mailto:mlane@marcjlane.com&quot;&gt;mlane@marcjlane.com&lt;/a&gt;.&lt;/strong&gt;&lt;/p&gt;</content:encoded>
      <category>2025 Lane Reports</category>
      <pubDate>Mon, 03 Nov 2025 10:00:00 -0600</pubDate>
      <link>http://www.marcjlane.com/news/2025/11/03/2025-lane-reports/the-bull-market-is-3-years-old-now-what/</link>
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