Posts Tagged ‘non-profit vs charity’

Charities that Aren’t: Non Profit is not Always a Charity

Tuesday, June 10th, 2008

I’m happy to read that their is finally some action in Washington and the various state legislature across the US to deal with this outbreak of businesses operating as Non-Profits claiming that the purchase of their products are “donations”. Nothing could be farther from the truth. This fake charity issue is something i face each day as the CEO of an Offset company. There are a number of my competitors who sell the same services as I do, complete with branding, but their business is organized as a non-profit claiming to be a charity. It’s not true in many cases, rather the Non-Profit is a vehicle to enrich the staff of the non-profit, by offering their clients a tax deduction for the purchase of a product is not in anyway charitable.

Fortunately i’m not just a lone voice in the woods, various governments are starting to look into these businesses to put a halt to what are essentally a tax scam against the government and a confidence scam agains Offset clients. How many people bought an offset from a non-profit that was from the Chicago Climate exchange? Most offer that, so do we www.4offsets.com, nothing wrong with that, except that offset, in most cases, was bought from a commericial business. How is this in anyway a charitable contribution? Say the XYZgreen.org sells 1 ton of offsets for $10, that they bought for $6. What happens to the $4? In some cases i’ve looked into, it goes to pay the staff and not 1 dime is used for charitable works In a charity, it is used for charitable works, giving things to community whether money or knowledge.

Join me in the fight agains this abuse of the non-profit system and is a being used to scam million of Americans into believing someone’s source of wealth is really a charity. Don’t get scammed!
Ask for details of the non-profit’s charitable works and ask for IRS filings
Is the board of directors controlled by people who work at the foundation?
Where is the outside oversite?

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