Hagedorn campaign money transferred to charity led by his widow, Jennifer Carnahan

WASHINGTON — Almost a year after U.S. Rep. Jim Hagedorn died following a battle with kidney cancer, around $125,000 of his campaign's remaining money was quietly given to a charity bearing the Republican's name.

And while there are only scant mentions online of James L. Hagedorn Cancer Charities — its website is nonfunctional — filings show the late lawmaker's widow, Jennifer Carnahan, is the president of the organization.

Carnahan is the former chair of the Minnesota Republican Party who was forced out nearly two years ago amid scandal. She ran for her late husband's congressional seat and finished third in a special GOP primary last year. She is also in a legal dispute with some of Hagedorn's family members, who sued her over money they put toward the late congressman's medical expenses.

Carnahan declined an interview request and did not answer a list of detailed questions. In an email, she wrote that "the charity is still in the formation phase, so there is not much to share (at this point) other than this charity was created to honor my husband's memory and help others fighting cancer."

In a Facebook post Friday, Carnahan blasted the Star Tribune for asking questions about the charity, accusing it of writing a "false and hateful article."

Documents submitted to the Internal Revenue Service, which has recognized the organization as a 501(c)(3) public charity, show Carnahan is listed as president and treasurer.

Jennifer Larson, who was finance chair of the Republican Party of Minnesota during Carnahan's tenure, is noted as the charity's vice president, and Carnahan's mother, Cindra Carnahan, as its secretary. All three are listed on the cancer charity's board of directors in recent state filings reviewed by the Star Tribune.

Larson resigned from the GOP finance chair role on the same day in 2021 that Carnahan left her Republican leadership post. The party's meeting minutes show Larson stepped down after voting to give Carnahan a severance package.

Federal campaign committees are allowed to make donations to charities. However, a campaign guide from the Federal Election Commission states "using campaign funds for personal use is prohibited."

The FEC guide notes that donations to a charity "are not considered personal use expenses as long as neither the candidate nor any member of the candidate's family receives compensation from the charitable organization before it has expended the entire amount donated."

Financial data included in the IRS documents shows that in 2023, the charity projected to bring in $237,000 in gifts, grants and contributions along with $126,000 in "unusual grants." For its planned expenses, the charity listed $119,000 for fundraising, $115,000 in "contributions, gifts, grants, and similar amounts paid out," and $67,000 in "compensation of officers, directors, and trustees."

The charity projected $429,300 in revenue for 2024, with no money coming from unusual grants; an estimated $157,000 in fundraising expenses, and $160,000 in the "contributions, gifts, grants, and similar amounts paid out" category. The form lists an estimate of $72,000 for "compensation of officers, directors, and trustees" that year.

Carnahan would not say whether the charity had raised any money outside of the campaign donation, nor whether the organization would be using the campaign funds to pay salaries or compensation.

A conflict of interest policy signed by Carnahan, her mother and Larson states that "a voting member of the governing board who receives compensation, directly or indirectly, from the Organization for services is precluded from voting on matters pertaining to that member's compensation."

An outline submitted to the IRS about the charity's planned activities states that 70% of its time would be spent on fundraising. Other planned activities include supporting people and families facing cancer and donating to "established cancer non-profits/charities." The document states those plans will be initially funded with the money donated by the late congressman's campaign.

"It seems to be critical because it's the seed money for the charity," said Lloyd Mayer, a professor at Notre Dame Law School who focuses on nonprofit and election law.

In her Friday Facebook post, Carnahan said she hopes to give financial support to families fighting cancer.

"Outside of treatment and regular doctor's visits, there are so many other unexpected costs that arise — ranging from hotel night stays to purchasing oxygen and much more; or in our case also renting an apartment in Scottsdale during the height of the snowbird season and me dwindling my savings account to keep my husband alive to fight another day," Carnahan wrote.

Heidi Hagedorn Katz, a sister of the late congressman who is not among the family members suing Carnahan, said the Hagedorn family was not told about the new charity.

"I can state with confidence that Jim's family was not informed of the creation of the James L. Hagedorn Cancer Charities organization and has no involvement in it," Hagedorn Katz said in a text message.

Hagedorn's mother, stepfather and one of his sisters sued Carnahan last year around a week before polls closed in a special primary for the late congressman's seat. In December, a Faribault County district judge ordered Carnahan to reimburse the family members for the more than $20,000 they spent on Hagedorn's medical expenses. Carnahan has appealed.

At the end of September 2022, Hagedorn's campaign still had around $140,000 in cash on hand left, federal records show. It then donated $126,684 to James L. Hagedorn Cancer Charities in October. The donation was refunded back to the campaign about a month later. Then in January, the campaign sent around $125,000 to the charity.

The treasurer for Hagedorn's campaign did not respond to an email with questions about the decision.

Staff writer Briana Bierschbach contributed to this report.