Not-for-profit corporations have long been used as a vehicle to evade taxes rather than to primarily serve as a charity or a public service. From TV evangelists and hospital directors building lavishly furnished buildings to the wealthy establishing non-profits to hire their children, and the IRS politicizing tax-exempt applications of the Tea Party, not-for-profit status has been frequently misused and under scrutiny.
Limit Non-Profit Salaries to the Median Income
Recent news reports say that Secretary of State John Kerry funneled over $9 million to a non-profit which pays his daughter $140,000 per year for 30 hours work per week. Family wealth has long been protected by establishing non-profit foundations and then hiring family members to run them. Originally, non-profits were largely voluntary organizations run by priests, nuns, and other voluntary social servants who lived a subsistence life, many taking personal vows of poverty. Using a non-profit as a funnel for self-enrichment does violence to the spirit for which non-profit status was created.
One way to limit some of the corruption is to limit the amount individuals can personally get paid from a not-for-profit corporation. Continue reading →