David Friedberg on the Nonprofit Scam: 90% Are Bullsh*t

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Episode Description

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Brief Summary

The episode critiques the misuse of nonprofit status and calls for reform in the sector.

Key points

  • The Nonprofit Dilemma. A critique of how nonprofits operate outside their intended purpose.
  • Opportunity for Reform. A call to action for redefining nonprofit regulations.

Transcript

You tell me how the 90% of what we call nonprofits today fall under that definition. The definition of exempt activities is charitable, religious, educational, scientific, literacy, public safety, or fostering amateur sports competition, or preventing cruelty to children or animals. We have completely closed our eyes to the fact that organizations, regardless of political affiliation, social interest, have fundamental commercial and probably not aligned interests with the definition of a 501c3, and we've allowed them all to get away with it for far too long. I don't think that this is a blue or red

thing. I think that this is a thing where we let these organizations make it easy to get money, to hide the money, and to do whatever the hell they want with the money. And we need to stop it. And I think that it's an amazing opportunity right now for everyone to kind of reset the decks by clearing all the up and getting all of these organizations flushed, and make sure that any organization that wants to do whatever bull nefarious things they want to do, by all means do it. But it's not a nonprofit, and you shouldn't get a charitable donation deduction, and the government should not be putting money into these sorts of things. This is an entirely different sort of activity in

the social order. And as a libertarian, I'm all for it. But I don't think that they should be tax exempt, and I don't think they should be getting government money, and I don't think that individuals should be benefiting from giving them money. And if we could fix all that up, I think a lot of these problems are going to go away.

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