August 16, 2011; Source: | City Year co-founder Alan Khazei is making his second run for the U.S. Senate in Massachusetts, and he has a lot to reckon with. Back in 2009, he finished third in a field of four in the Democratic primary and then watched Republican Scott Brown come out of nowhere to capture the seat vacated by the death of Ted Kennedy. With the Democratic nomination once again up for grabs in 2012, Khazei could find himself facing the high-profile Elizabeth Warren, acting head of the Consumer Financial Protection Bureau. As of early July, however, Khazei was leading the fundraising derby among announced Democratic candidates.

Now both major Boston papers, the Globe and the Herald, are reporting that Khazei is making what some may see as a good chunk of change in consulting fees from Be the Change, another nonprofit Khazei founded and recently left in order to make his Senate bid. The deal pays him up to $12,000 a month for three months and then up to $10,000 a month for two months through September as he helps the new Be the Change CEO, Kevin Jennings, get up and running. Jennings, previously the assistant deputy secretary of education under President Obama, says he speaks with Khazei once or twice a week, while a spokesperson reports that Khazei puts in anywhere from 40 to 60 hours a month. Khazei’s spokeswoman says that the the arrangement has been approved by the nonprofit’s attorneys and both newspapers acknowledge that there may not be anything illegal going on but they are clearly raising the arrangement as a question, and Khazei is not commenting yet.Ruth McCambridge