By Ovetta Wiggins
Washington Post Staff Writer
Saturday, January 12, 2008

A foundation created to manage grants awarded from the developer of National Harbor announced yesterday that it has given more than $300,000 to nonprofit groups that offer arts and culture and recreational programs and services for children and the elderly.

The 31 grants from the Prince George's Community Foundation come about eight months after questions were raised about how the initial group, the National Harbor Community Outreach Committee, distributed nearly $200,000 in funds and six months after the committee disbanded.

"We are very proud to be a part of the important movement of helping organizations reaching out in our Prince George's County neighborhoods," Artis Hampshire-Cowan, president of the Prince George's Community Foundation, said in a statement.

The Washington Post reported in April that National Harbor Community Outreach gave more than $181,000 to organizations with ties to committee members or County Executive Jack B. Johnson (D). The Maryland state prosecutor's office launched an investigation into the awarding of the grants last year.

The grant program is part of a 10-year agreement National Harbor's developer, Milton V. Peterson, made with the county in 2004 during negotiations over the $2 billion entertainment and residential complex on the Potomac. Peterson agreed to spend $350,000 a year to help community groups, and the county spent millions of dollars for roads and sewers to accommodate National Harbor.

Desiree Griffin-Moore, executive director of the Prince George's Community Foundation, said each proposal "had two sets of eyes reading it and evaluating it."

"We looked at the organizations on their own merit," she said. "If they were a 501 (c) (3), they were eligible to apply," she said, using the designation for charitable, nonprofit, religious or educational groups that meet the guidelines for tax-exempt status.

To avoid conflicts of interest, several members of the committee recused themselves from the process, including Leslie Johnson, the county executive's wife, who joined the board a year ago.

"Everything was done possible to make people aware of the grants and to make sure there were no political ties that were obvious," Lucenia Dunn, a spokeswoman for the foundation, said.

In August, the foundation approved new guidelines for distributing grants. The biggest change was requiring that all applicants were tax-exempt nonprofits under Section 501 (c) (3) of the Internal Revenue Service code or have an affiliation with such a group.

For example, the board awarded a $15,000 grant to a Rockville nonprofit, Soul in Motion Players, which has an affiliation with a Fort Washington-based company called BodyMoves. The grant is to provide opportunities to 20 young people in fitness and the performing arts.

Griffin-Moore said the committee received 223 proposals, and the total requested was about $5 million. Awards ranged from $5,000 to $15,800.

The Big Brothers Big Sisters of the National Capital Area received $15,000 for mentoring; the Alexandria Seaport Foundation in Alexandria got a $10,000 grant to support boat-building apprenticeships for two residents in Prince George's; and Little Foot Academic Learning, a day-care center in Accokeek, received $10,000 to help purchase a van to take children to recreational and cultural activities.

Covenant House in the District came away with the largest grant -- $15,800 for its street and community outreach program.

"The application review was rigorous," Griffin-Moore said. "With $329,000 available, the selection process was very tough."

The foundation received $21,000 in administrative fees from the developer to manage the fund.