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Summary: The wealthy are using non-profits, charities, and foundations to push political agendas at the expense of taxpayers who are footing the bill because th

Summary: The wealthy are using non-profits, charities, and foundations to push political agendas at the expense of taxpayers who are footing the bill because these institutions are also tax write-offs. The article focuses on these organizations pushing advocacy, but I would also add that many "non-profit" organizations are actually incredibly profit-focused. An early introduction to this for me was growing up next to the Christian Broadcasting Network, a charitable organization that was raking in millions of dollars selling alternative medicines, opening five-star restaurants, hosting luxurious retreats, while also raking in donations from the poor people who would tune into the show seeking god's grace [1]. I see the same thing with Mega Churches, which are springing up like fast food franchises all over the DC-Metro region. These enormous buildings are raking in profits every Sunday while giving nothing back in taxes to pay for the roads, utilities, and emergency services the community provides for them. Taxpayers are losing $71 billion a year in revenues because of these for-profit franchises [2]. It isn't just religious institutions either. I've stopped giving blood to the American Red Cross in favor of donating it directly to my local hospital so they don't have to pay the overhead that comes with Red Cross blood [3]. The DC-Metro area is packed with "non-profits" that are really for-profit companies that pay out their profits directly to CEOs and board members while sending lobbyists to the National Mall to buy expensive lunches for our Representatives. The article notes that the alternative is the European system of not providing tax-breaks for these organizations--which results in much fewer organizations. It's hard for me to accept that when I think of all the organizations I perceive as doing good in America, but maybe they aren't really doing good and are simply enjoying the good sentiments that come with the words "charity" and "non-profit?" [1] http://www.starnewsonline.com/article/20070327/NEWS/703270372?Title=Lawsuit-says-evangelist-Pat-Robertson-abuses-tax-free-status-to-push-product http://www.starnewsonline.com/article/20070327/NEWS/70327037... [2] http://bigthink.com/21st-century-spirituality/how-to-make-71-billion-a-year-tax-the-churches http://bigthink.com/21st-century-spirituality/how-to-make-71... [3] http://www.nytimes.com/1991/07/07/business/all-about-blood-banks-a-multibillion-dollar-business-in-a-nonprofit-world.html?pagewanted=all http://www.nytimes.com/1991/07/07/business/all-about-blood-b...

lmm 11y ago
> The article notes that the alternative is the European system of not providing tax-breaks for these organizations--which results in much fewer organizations. It's hard for me to accept that when I think of all the organizations I perceive as doing good in America, but maybe they aren't really doing good and are simply enjoying the good sentiments that come with the words "charity" and "non-profit?" You've got to ask how much of those sectors' income is going to organizations that are doing good, and how much is not. And remember that taxes are used for the public good, so the bar to be tax exempt should not be merely "is this organization doing good?" but rather "is this organization doing more good per dollar than is done with general taxation?"
- barney54 11y ago
  Is the government "doing good?" There is some good, but there is a case that non-profits such as the Red Cross, churches, food banks, are more accountable and do more good. To me non-profits do far more good per dollar than the government does through general taxation. The biggest reason why is that non-profits have a much more defined scope and mission.
  - eli_gottlieb 11y ago
    I find it very difficult to believe that the Red Cross does more good than Medicare and Medicaid, or that food banks do more good than Food Stamps.
    - dignan 11y ago
      You're comparing an organization with a budget of about $3 billion to one with a budget of over $1 TRILLION. It's a nonsensical comparison.
  - countrybama24 11y ago
    Well they are good at different activities. Charities are good at things that can be done on a small, decentralized scale, like giving away food. Regulating massive industries, correcting the issues in our healthcare system, setting up a program of cash transfers, on the other hand, are all things that often require the scale of the government.

lmm 11y ago

> The article notes that the alternative is the European system of not providing tax-breaks for these organizations--which results in much fewer organizations. It's hard for me to accept that when I think of all the organizations I perceive as doing good in America, but maybe they aren't really doing good and are simply enjoying the good sentiments that come with the words "charity" and "non-profit?" You've got to ask how much of those sectors' income is going to organizations that are doing good, and how much is not. And remember that taxes are used for the public good, so the bar to be tax exempt should not be merely "is this organization doing good?" but rather "is this organization doing more good per dollar than is done with general taxation?"

barney54 11y ago
Is the government "doing good?" There is some good, but there is a case that non-profits such as the Red Cross, churches, food banks, are more accountable and do more good. To me non-profits do far more good per dollar than the government does through general taxation. The biggest reason why is that non-profits have a much more defined scope and mission.
- eli_gottlieb 11y ago
  I find it very difficult to believe that the Red Cross does more good than Medicare and Medicaid, or that food banks do more good than Food Stamps.
  - dignan 11y ago
    You're comparing an organization with a budget of about $3 billion to one with a budget of over $1 TRILLION. It's a nonsensical comparison.
- countrybama24 11y ago
  Well they are good at different activities. Charities are good at things that can be done on a small, decentralized scale, like giving away food. Regulating massive industries, correcting the issues in our healthcare system, setting up a program of cash transfers, on the other hand, are all things that often require the scale of the government.