Are there too many Non Profit Organizations?

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Permalink Reply by Ben McCann on November 11, 2009 at 1:32am

If the Tax Code wasn't over 90,000 pages long it wouldn't require establishing "Not For Profits & Non-Profits" in order to get things done. Why can't a company direct resources at a cause, why does it have to establish a "foundation" in order to fund it's charitable interests?

People don't give to charity because of the Tax Benefit ( most of them anyway ) they give to support a cause. The Government and IRS have become so intimately involved in everything, that every penny spent or given has to be accounted for.

How much RED TAPE goes into administration and accounting just to maintain "tax status" or meet "grant requirements". If people don't support your cause enough to creatively fund it, why should the taxpayers default to fund it.

just a bunch of random thought and questions, nobody is probably listening.

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Permalink Reply by Steve Stuck on November 11, 2009 at 10:22am

Very good point Ben and basic information most Americans don't grasp. Quit giving incentives to make non for profits the way they are and our tax code is a key. People are now creating non for profits in order to shield money. Many people with money are smart and find ways for the government not to tax it.

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Permalink Reply by Marita Topmiller on November 12, 2009 at 3:54pm

We're listening, Ben, and you've raised good points.

I established a not for profit for a group of women on the south west side of Indy. They were
collecting food and filling a pantry for the Mars Hill area. Some of the donations were from
large bakeries who needed proof that their products were going to charity to avoid paying
taxes and the women themselves needed the shelter.

My gut feeling is that many small charities exist in support of a localized need and I love those
people for filling it. They are helping folks who fall between the cracks in the large charitable
organizations.

Maintaining 501 c 3 status is a pain, but very doable once you organize things. Those who can't
keep the paper organized, lose their status. Unfortunately some good folks lose it and some
greedy groups keep it. But on the whole, we need the red tape to prevent wholesale flim
flam.

However, many years ago, a guy I grew up with began a charity for a big, local organization.
He put together a phone room and solicited contributions to that worthy cause. But the
"worthy cause" only got 15% of the monies he collected. He pocketed the rest. (No longer
a friend) - So, giver, be aware of how much of your contribution is going where you intend.

I love having NPOs here on SI. When you've got some extra bucks and are looking for someone
in need, check here first. You can find folks who are putting 90% or more of the contributions
they collect into the hands of those in need. How can they do that - no giant overhead.
NPOs, publish the percent of contributions you are putting into the hands of those in need.

Thanks for a great post. Times are hard. Look out for your neighbors.

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Permalink Reply by Ben McCann on November 13, 2009 at 11:58am

Good points ALL,

There are GREAT charities out there where the work gets done and the majority of donations go to service the needs. Organizations like United Way come in and supposedly "coordinate" services and administer funds, but they actually just suck up the money for themselves a lot of times. They have very tricky ways of "accounting" for funds and administering them to themselves. Their job exists so they can have a job, they are inefficient and suck money out.

Other organizations like people helping people www.phpnetowork.org actually coordinate funds and work with other Not For Profits and help promote them. FHL www.fhlinternational.org is another organization that GETS STUFF DONE.

I know first hand that all the posturing and posing for the camera that United Way did in this state when the FLOODS came in --- I was in charge of Volunteer Coordination and watched as the GREED and POLITICS took over... it was a sickening site.

All the work was done by Volunteers, 85 % was churches, then comes Red Cross & Salvation Army & Southern Baptists, then the LDS's. ZERO of the work was done by United Way, but they ended up getting ALL the FUNDING and it amounted to HUNDREDS of THOUSANDS of DOLLARS. -- The organizations that actually did the work, didn't get a penny unless people donated directly to them.

When an emergency happens, if you TRACK VOLUNTEER hours, you get re-reimbursed, I personally coordinated over 500 volunteers, we tracked every one, I had NO IDEA the work that we were doing was being USED by UW ( who did nothing) to help them who swooped in and Confiscated our data for their benefit.... it was DISGUSTING .... I watched as the DIRECTOR cussed me out in front of the Emergency Management Coordinator for the county and Ike Randolph the Faith Based Coordinator for Gov. Daniels because we were getting stuff done and she felt like she should have been involved more, because that is what she gets paid do to ( we basically proved them irrelevant to any needs )

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Permalink Reply by Marita Topmiller on November 13, 2009 at 12:15pm

I like to donate close to heart/close to home. I donate a portion of each paycheck to the
March of Dimes. But I prefer to, and do donate most of my charitable contributions directly
to the people in need and to the charitable services working directly with those in need.

In that way, I try to maximize the amount of my contribution that gets to the people.

Scary bad story about United Way. But then again, part of their focus has to be about
staying in business.

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Permalink Reply by Ben McCann on November 13, 2009 at 12:44pm

:o) 90% "5 3$1%2 5"8)- %- -3&(%?6 %? #)-%?1--

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Permalink Reply by matthew w. wilson on November 13, 2009 at 4:07pm

barf

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Permalink Reply by PK Koduri on November 11, 2009 at 8:59am

Sticking to the main question of whether we have too many non-profits - yes we do and many are just driven by huge egos. I agree with Eisenberg's assertion that many are involved in servicing and not solving the problem. Take Africa for example - there are so many NPOs trying to do something there - water, food, shelter etc. Most of them help by handing out food or money and not solving fundamental issues. Because of this there has been very little impact. We did manage to create a whole group of people that have come to expect handouts and not help themselves. What this proliferation of NPOs, many are in fact started after a vacation to some 3rd world country, has done is create apathy. I clearly remember when last year around this time there was something called a "Twestival" to raise money for a new NPO focussed on digging wells in Africa. A quick Google search reveals that there were many NPOs in Africa doing the same and a new one did not make sense. It did not have a better way to do things except for a novel way to raise money - using Twitter. I just rolled my eyes and thought here we go again. So folks next time you come across a Cause Du Jour do yourself a favor and do some research.

Here is an interesting but unrelated read from a Photographers perspective: Please, No More Pictures of Dying Africans | Black Star Rising Photography Blog http://bit.ly/2WuyB1

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Permalink Reply by Pat Coyle on November 11, 2009 at 10:39am

Is there a database of NPOs? Seems like that would be a useful tool so that people could search before then form new one...or before they give...

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Permalink Reply by Steve Stuck on November 11, 2009 at 10:44am

http://foundationcenter.org/

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Permalink Reply by PK Koduri on November 11, 2009 at 10:52am

http://www.idealist.org/

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Permalink Reply by Marita Topmiller on November 12, 2009 at 4:18pm

@ Pat: Yes, it's right here on SI.

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