Monday, October 3, 2022
Home POLITICS There's never been a better time to be a scamming nonprofit

There’s never been a better time to be a scamming nonprofit

While Charity Navigator initially placed a notice about QL+, noting the allegations in the Los Angeles Times, removed any mention of the scandal, following communication between the two parties and what a Charity Navigator official described as evidence of “corrective action.” In internal emails, the QL+ leader also expressed the need to focus on GuideStar, “so we can reference that rating in our marketing and grant applications.” QL+ currently has a “platinum” classification from GuideStar, which, a few years ago, merged with a non-profit organization focused on supporting the charitable sector through fundraising information and other assistance, which presents potential conflicts of interest. Officials at these organizations largely defended their practices, though a GuideStar official vented about the lack of publicly available information about nonprofits and compared 990 data (the forms that nonprofits must submit to the IRS annually) with “Swiss cheese”.

These ratings are routinely called by Charity Watch, the only truly aggressive guard dog. The organization helps journalists. interpret IRS Nonprofit Disclosures While Revealing How The Documents Themselves Can Be Easily Manipulated To underestimate executive compensation and exaggerate impact. “The entire system is based on false assumptions and flawed automated methods,” said Laurie Styron, leader of CharityWatch.

CharityWatch has also supported efforts to impose new responsibility, transparencyand expense measures on nonprofit organizations, laws that have faced political headwinds, vetoesand legal skepticism. Last year, for example, the US Supreme Court. tipped over a California law requiring increased disclosure of donors within nonprofit organizations, calling it a violation of the First Amendment. This followed similar Supreme Court rulings that, among other things, struck down a state law that required charities to spend a minimum percentage of their annual budgets on program activities and capped overhead.


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