by Jeremiah Johnson, SHTFPlan:
One of the biggest problems facing this nation is the amount of money that has been “sequestered,” to term it, for “Non-Profit Organizations,” or “NPO’s.” Why? They present a problem when they can be used by an unscrupulous individual or groups of unscrupulous individuals (for examples, a George Soros, or the Democratic Party respectively). What is an NPO? Let’s look at what they are and see if the definition is characterized by actual NPO actions.
Here is an excerpt from a book that describes NPO’s (what they should be):
“The main financial difference between a for-profit and a not-for-profit enterprise is what happens to the profit. In a for-profit company like Ford or Microsoft or Disney or your favorite fast-food establishment, profits are paid to the owners, including shareholders. But a nonprofit can’t do that. Any profit remaining after the bills are paid has to be plowed back into the organization’s service program. So profit can’t be distributed to individuals, such as the organization’s board of directors, who are volunteers in every sense of the word.”
“Nonprofit Kit for Dummies,” ISBN: 0-7645-5347-X, pg. 8
Austere and stoic, these NPO’s, all! Ahh, but what is conveniently left out is the salary portion…for the directors.
Those salaries are written off as an operating expense by the “Non-Profit,” but they’re hardly the funds gleaned by a “simple volunteer for the beneficent NPO.” Another paragraph from the book shows this:
…for the most part, we’re talking about an organization that the Internal Revenue Service has classified as a 501(c)(3). They receive exemption from federal income taxes and sometimes relief from property taxes at the local level. Nonprofit organizations classified as 501(c)(3) receive extra privileges under the law. They are, with minor exceptions, the only group of tax-exempt organizations that can receive tax-deductible contributions from individuals and organizations.
Being a nonprofit organization does not mean that an entity is exempt from paying all taxes. Nonprofit organizations pay employment taxes just like for-profit businesses do. In some states, but not all, nonprofits are exempt from paying sales tax…”
Ibid., p. 9
So, we have some of the basic parameters here for NPO’s. We’re not going to delve into the different types, such as politically-organized, or the religious-type of NPO’s. I draw the reader’s attention to the simple fact that (as mentioned in the last paragraph) the NPO’s “pay employment taxes just like for-profit businesses do.” How wonderfully utopian and egalitarian that sounds, all under the “color of law!” The reality is far from it. Directors of NPO’s make six-figure salaries, and all their “bennies” (that’s benefits, not Benzedrine…well, we hope!) are little perks they take and write off as the almighty “operating expense.”
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