I spend so little time on youtube anymore that the only reason I know who the guy is, is from this issue.
This just reminds me never to donate at all.
Did you know that it's perfectly legal to have administration costs eat up to 95% of the total incoming donated revenue if you have a 501c non profit?
That means for every dollar, you only have to spend a nickel of said dollar on the thing you claim to stand for. Ain't that something.
Oh, it gets worse though. And this is where I'll fully admit it's over my legal knowledge. (I haven't dipped a toe into the law since 2011. So it might have changed. I'm out of the field now.)
You can donate it to another non profit charity if you want to do so, even if that's not the stated goal of the company. To my knowledge, there are no laws against owning that, or a family member owning that non profit charity that you just donated money to from the other non profit you also own.
So basically, your right hand can give the money to your left hand, and make it look like you did something with it.
Seems like the only thing not profiting from the non profit industry, is the cause they claim to want to help.
It's one of the reasons I don't do law work anymore. I've seen first hand people in high positions that work at these 'charity' places paying off cars, houses, boats, with donated money. Because when a 501c does it, no one bats an eye that it can be an expense you could weasel word state that it was for the good of someone and benefits someone, even if that someone is you.
I spend so little time on youtube anymore that the only reason I know who the guy is, is from this issue.
This just reminds me never to donate at all.
Did you know that it's perfectly legal to have administration costs eat up to 95% of the total incoming donated revenue if you have a 501c non profit?
That means for every dollar, you only have to spend a nickel of said dollar on the thing you claim to stand for. Ain't that something.
Oh, it gets worse though. And this is where I'll fully admit it's over my legal knowledge. (I haven't dipped a toe into the law since 2011. So it might have changed. I'm out of the field now.)
You can donate it to another non profit charity if you want to do so, even if that's not the stated goal of the company. To my knowledge, there are no laws against owning that, or a family member owning that non profit charity that you just donated money to from the other non profit you also own.
So basically, your right hand can give the money to your left hand, and make it look like you did something with it.
Seems like the only thing not profiting from the non profit industry, is the cause they claim to want to help.
It's one of the reasons I don't do law work anymore. I've seen first hand people in high positions that work at these 'charity' places paying off cars, houses, boats, with donated money. Because when a 501c does it, no one bats an eye that it can be an expense you could weasel word state that it was for the good of someone and benefits someone, even if that someone is you.