nonprofit ≠ not profitable

without a doubt, the biggest scam in america is the entire concept of “nonprofit” organizations. and these guys are making a mint.

this quote is from a baltimore sun article:

Seven of the state's 501(c)(3) organizations - charities, the most common nonprofits - paid more than $1 million in salary and benefits to at least one official during their 2003 fiscal year, according to the most recent Internal Revenue Service data consistently available. Thirty shelled out more than $500,000, a Sun analysis found.

granted, the number and complexity of these monstrosities are expanding at an alarming rate, so we should expect to see higher salaries.

but you need to understand that the biggest secret of all about these “nonprofits” is that the only difference between them and a regular company is that they don’t have shareholders. (there are other restrictions, but they amount to little more regulation than any for-profit company is subject to.)

but if shareholders aren’t keeping an eye on the board as it sets executive compensation, who is?

effectively, no one.

non-profits are subject only to pressure from decreased donations, be they government aid or private donors.

but with non-profits reporting – rather conservatively, and according to generally lax rules – millions of dollars spent lobbying every year, why spoil the party? if you think for one second that a politician would say “no” to spending your tax money on a non-profit in exchange for campaign money, you should have your children and small animals taken from you.

and then there’s you, the donor. how are you supposed to know that when you donate the national federation for the blind, only 20% of your donation will go directly to helping the blind?

so what is there to do?

remove the politicians and make charities compete.