this post was submitted on 17 Nov 2024
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Couldn't the CEO of the nonprofit be the spouse of the CEO and make a huge percentage of what they donate?
Not saying donating through a mega corporation is always bad, but I'd prefer to look into who I'm donating to rather than a split second thought at the end of a transaction.
this! the megacorporation receives 500k donations, which they transfer to CEO's son's "charity" that spends 99% of it on the said son's salary. he buys another ferrari and the charity sends some flowers to a children cancer hospital.
Reminds me of something a criminal would pull.
Then it's not a non-profit now is it?
Frequently yes it is. Look into celebrity charities. Frequently they have a family member running it and most of the employees are family or friends. Most of the money goes to family with at most 50% going to the actual cause.
Non profits can still have employees that get paid, they are just required to report who gets paid and how much (at least in my state).
Yeah obviously they have employees who get paid, but if a large portion of new donations just paid a CEO pay, that's not exactly discreet fraud when the IRS comes around looking.