14 thoughts on “Profitable “Non-Profits”

  1. Shocked – you better be careful CATO, someone might swear out a complaint of harassment or even file suit – even worse – write an unsold book about you

  2. It would be both informative and entertaining to see an in-depth and exhaustive journalistic investigation (by a real journalist, not just a half-crazed wannabe) of a local liberal reformed felon who receives funds from the Soros’s and Streisands of the world for the alleged purpose of achieving justice for the down-trodden through the process of music. It would be only logical that any such non-profit organization would be most anxious to air their records to one and all to put to rest stray rumors of petty theft, diddling and what-not. Perhaps a Channel 7 expose!?

    • Streisand is just an idiot, but Soros should have known better than to be taken in by Kimberlin’s simple scams. Anyway, he does deserve a public expose of how a terrorist diddler ended up scamming people for a living and perjuring himself repeatedly in vengeful pursuit of people who criticize it.

    • “not just a half-crazed wannabe) of a local liberal reformed felon”
      “not just a half-crazed wannabe) of a local liberal unreformed felon”
      FTFY …

  3. The “dirty little secret” of non-profits: non-profit does NOT mean non-revenue. It means, as the Cato people note, if you make a lot of money, it means you have to pay it all out. Easy way to do it is high salaries to execs, redecorating offices, bonuses to staffers, lavish events. And it cannot be questioned, because by law, they have to spend it.

    I know people who think that non-profits are somehow holy because they are not working for evil profit. I know of a number of non-profit contractors to the government (usually attached to universities). They get a preferred status in contracting, yet often (as in always) their rates are much higher, and their overall costs to the government (and the taxpayer) are much higher. But, hey, at least they aren’t making a profit!

    I know of a non-profit devoted to a particular form of hunting. Basically a guy started it and published a newsletter. It took off way beyond his wildest dreams. So he had to pay himself a huge salary, hired all his relatives, built the biggest house by far in the small town he lived in, and of course the company cars were Hummers and Escalades. That isn’t to say that the organization was not legitimate. It is and actually provides good services to its members. But don’t believe for a minute that because someone works for a non-profit that they must be some sort of ascetic.

      • We don’t know if he is doing it wrong because the information in the 990’s is so scant … And he is dedicated to hiding any revenue to himself to avaid paying Mrs. DeLong her just compensation as adjudged by the courts …

      • Yes, it would seem that money must be being hidden. I really don’t see how anyone can support a family of four in MD on only $19.5K a year. Given that JTMP seems to be paying for his personal lawfare…..

      • Well, at least in part, company cars paid for by JTMP.

        We know for a fact that his wife was using a JTMP vehicle as her personal vehicle. That saves money. Take your car ownership and maintenance off of your salary.

        Also, take the rent off. Housing and utility expenses, to include your internet.

        Probably pays for all his musical hobby as well as that of his daughter.

        If someone else pays your bills, you don’t need to make a lot of money.

      • “Citizen K” talks about Kimberlin hiding the proceeds of his drug sales in PVC pipes buried in the ground. I find it hard to believe all the money has been recovered.

    • I think you are not quite clear on what nonprofits need to do.

      A funding organization must pay out 5% of its market value on an annual basis.

      A school or other such organization may build an endowment, and is expected to handle its finances so that it stays in business. There’s a huge difference between the prudent management of your assets and fraud.

      Most of nonprofit world works for less than an equivalent position in the private sector would bring.

      Yes, there’s fraud. Lots of it. But seriously, it’s important work, done with care. In my view, the real issue is a lack of competence and an unwillingness to speak up about bad ideas, or unworkable ones, or duplication of effort. Good intentions get substituted for actual results, and it makes me crazy.

      • Make no mistake, the majority of non-profits do good work, and honestly.

        The issue, for me, is the disconnect between the inputs, and the stated results; it often seems that, without the harsh reality of the profit motive, many non-profits are not incented to FOCUS!!!! on their mission.

        Just an observation, derived from serving on the BoD of several such…

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