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The scams and frauds behind non-profits - YouTube
Channel: Slidebean
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naive 20 year old me used to think of
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charities of non-profit organizations as
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truly selfless acts
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but you probably know where this is
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going
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fifa a non-profit organization founded
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two to develop and to improve the
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beautiful sport of soccer has 1.8
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billion dollars in cash reserves paid
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its president about 3 million a year in
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salary its top executives went all to
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jail a few years ago for laundering
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money and taking bribes this pastor for
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example he used his non-profit to
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essentially become a millionaire and
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then fly in his own private jets jesus
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was physically on the earth today he
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wouldn't be riding a donkey he'd be in
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an airplane preaching the gospel all
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over the world these are just two of so
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many stories we found on how easy
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these organizations lose their way and
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it's no coincidence that so many
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celebrities and millionaires have all
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established their own foundations but
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even worse than this even worse than
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just saving taxes nonprofits raise money
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they raise money from people like you
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and me who want to help sometimes but
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few people know the truth the truth of
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where that money
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sometimes ends and how little it
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actually goes to that cause that you're
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that you think that you're supporting so
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what is it about the non-profit
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organization that makes it the perfect
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cover-up for this crap
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stealing tens of millions of tax dollars
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meant for child nutrition programs the
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non-profit took over 300 000 in federal
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funds to just shy of 200 million dollars
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in 2021 alone so when you start a normal
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company you incorporate it you define a
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set of shareholders you issue more
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shares to investors and then if things
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work out you sell it and then you retire
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in costa rica when a traditional company
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closes a profitable year it may choose
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to save that money for later or it may
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pay it out to its investors as dividends
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the way this works at least in the u.s
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is first the irs will take its cut of
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the company profits that's revenue minus
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expenses then if the investors agree
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they make a dividend distribution so all
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the profits are divided between all the
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shares that have been issued for that
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company and each shareholders gets some
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cash proportional to their share
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ownership which is taxed again by the
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way but still this is the most direct
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legal straightforward way to earn money
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from the company that you started or
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from your investments but it is
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expensive because it is double tax so
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there must be another way right well of
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course there are plenty of ways people
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will always find ways to get fewer taxes
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go watch your video on the pendulum
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papers but nonprofits are just one of
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them and if you know your way around the
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system you can absolutely use them to
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your advantage so if you're opening a
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nonprofit organization there isn't much
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difference with a for-profit at first
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you have to do some basic things like
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defining a name creating a governing
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board define a mission statement and all
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those
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bureaucratic details then you have to
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incorporate it and register just like a
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normal business you have to file for
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this tax exempt status if you get this
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approved then you're all set but the
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authorities are going to be on top of
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you nonprofits can make revenue yes they
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can pay for things they can employ
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people and yes they can have some
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additional regulations for example they
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have to file yearly forms to justify
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their income and their expenses and with
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these forms of authorities
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sort of try and control that there isn't
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any foul play but of course of course if
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you play your cards right you can end up
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with an organization that you control
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maybe through somebody else that just
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does what you tell them to do and an
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untaxed bucket of money and you can use
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that cash for things like jets so this
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is jesse to plant that he is a pastor
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i'm sure his church does great things
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for a lot of people i don't doubt it but
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personally i just don't trust the guy so
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why would you it's not the weird hair or
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the creepy smile it's that he uses his
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churches and his non-profits to buy jets
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he asked members of the congregation to
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give him 54 million dollars to pay for a
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private jet why you ask well because
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flying coach is full of demons it's not
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about possessions it's about priorities
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he has said that flying commercial would
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require him to stop repeatedly waste a
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lot of fuel and slow down his job
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as a pastor and that the tiny seeds and
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crappy food wouldn't let him
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talk to god and here's where it gets all
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more twisted he asked for a donation
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true donation of 54 million dollars to
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do that and you see the ministry can say
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that it is an asset it is an asset that
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the pastor uses to spread the word of
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god which is the non-profit's purpose so
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as far as the law goes it's still
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fair play even if it's a private
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freaking job oh and and by the way that
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was that was his fourth private debt
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this was paid cash this was paid cash
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this was paid cash and the new ones will
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be paid cash also so when the media
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questioned him this is what he said i
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can't even read this i'm not asking you
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to pay for my plane i'm asking you to
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pray for my plane that's the actual
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quote god
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told me to have that plan and then in
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the context of a non-profit that's
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there's nothing stopping him from doing
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that so this crazy bastard is just one
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example of how nonprofits can play with
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the numbers after all the expenses tab
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in your financial model wink can hold up
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anything after all there doesn't seem to
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be much control when it comes to
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conflict of interest with these
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foundations now we've all heard of
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course of the bill and melinda gates
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foundation this non-profit is famous for
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donating to the latest and to the
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greatest education medicine and research
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from the outside if you're not part of q
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anon it's it seems that everybody loves
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it right after all they have and this is
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true they have donated billions of
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dollars into global health with the
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latest technology on hand hey guys sorry
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to interrupt the video but i wanted to
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bill gates and his wife melinda have
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been using their influence and wealth to
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foundation hovers on a very thin line
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between right and wrong so
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here's how it goes like in in 2020 the
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gates foundation donated around 250
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million dollars in grants to giant
[411]
corporations lg or ericsson merck and
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pfizer so sure these companies are
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making great strides in
[419]
topics like the vaccine like the kova
[421]
vaccine and a bunch of new technologies
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but at the same time the gates
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foundation owns stock
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in all of these corporations now is that
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forbidden
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no but it can absolutely blur the lines
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and make corporations believe that they
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too even with their massive size are
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worthy of billions of dollars in
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donations now donations are essential
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for non-profits but this gets a lot
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darker it gets a lot darker when these
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organizations are not only the cash
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reserve for their owner but do the
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fundraisers as well yeah let's take
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another controversial non-profit oh i'm
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gonna get burned for this but okay so
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let's talk about the nra nra history
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spends 150 years and its core goal has
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evolved through it all first it aimed to
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improve marksmanship and then shift to
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promoting gun education and gun safety
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and then lobbying for guns threats but
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in later years the nra became desperate
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for donations it has deficits of up to
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40 million dollars so it's increased its
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fundraising like crazy but hold on hold
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on the nra is this huge organization
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how did it get to this point this all
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started when the nra
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decided to focus change its focus from
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education to lobbying they started
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promoting this gun loving lifestyle and
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openly criticized those who criticized
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the organization in fact it stopped
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funding gun safety the non-profit's
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budget showed that it had reduced that
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to less than 10 of its budget for gun
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education and for safety and that it had
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shifted the rest to just
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communications it was now this media
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company that had become a piggy bank for
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its directors corruption within the nra
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was so rampant that wayne lapierre one
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executive paid 13.5 million dollars of
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the nonprofit's money to a travel
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consultant what the hell is a travel
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consultant lapierre also spent almost
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300 000 in a beverly hills men's store
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250 000 and traveled to italy hungary
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and the bahamas one nra member dave
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butts received 400 000 as payments for
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consulting on public outreach and then
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the nra lobbied against background
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checks for gun owners and even spent 1.6
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million dollars in six months
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campaigning against it and that is a
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major no no nonprofits can lobby but it
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cannot become a substantial portion of
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their efforts so all these chaos finally
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sparked some legal action so in 2020 uh
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new york's attorney general leticia
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james opened a full-on investigation and
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alleged that the nra had failed to
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continue its core goal of promoting gun
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safety for years of self-dealing and
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illegal conduct
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that violate new york's charities law
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and undermine its own mission and plus
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of course there was all this corruption
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stuff and washington dc followed suit
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the accusations were very explicit that
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the nra was just too corrupt it was no
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longer focused on its goals instead
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again just a piggy bank for its
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directors but that is kind of the
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problem with nonprofits it's easy to
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justify and hard and complex to disprove
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the nra could say all of these expenses
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were necessary and we kind of would have
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to believe them in the current state of
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the law okay so let's maybe assume that
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not all the money is laundering let's
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let's go to a different world let's
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assume that someone really
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really really wants to help pick plastic
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from the ocean or i don't know help the
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pandas so another
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massive problem with nonprofits it's how
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much money gets lost on the way okay so
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let's say that you donate a hundred
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dollars to a campaign in omaze 65 of
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those dollars will be used to pay for
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the reward and for the costs of the
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reward just that 20 are for omaze's
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admin fees and they're a for-profit
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organization by the way and after all
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these fees only 15 out of your 100
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donation will make it to the actual
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nonprofit which of course of course most
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certainly has costs as well so if you
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really
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care about donations
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all you're left with is doing research
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so you have sites like charity navigator
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that can tell you how much a non-profit
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pays in overhead expenses if you want to
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help that panda you should respect that
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33 rule this means that any nonprofit
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that spends more than 33 percent should
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raise a red flag to you and the problem
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is that there are a lot of them that
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don't work as efficient so that panda
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might get either 87 or a meager 20 and
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in some cases it's even worse if you
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heard about the cancer fund of america
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you might think that this is a
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professional solid organization that
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helps fund cancer research right if you
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go to their website that's what they'll
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tell you and then if you look at their
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financials you'd see that they in fact
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donate to cancer research but that's
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after
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they pay
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james reynolds the founder 230 000 a
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year the fund also pays for another 24
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family members salaries and you might
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think that such a high salary means that
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there's i mean there's probably a lot of
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money coming in right and you have to
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manage it well no not really the cancer
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fund of america donates 2.5 of all
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donations to research and support 2.5 of
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all the money that they get but once
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again as a non-profit organization they
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can't this is legal and there's nothing
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that can stop them so that's why we need
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to have sites to rate these charities
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and that's why the cancer fund of
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america has the worst possible rating in
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charitable watch since 1993. at least
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they've been consistent before we finish
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i want to talk about one last case in
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particular it brings all of these
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loopholes together into into one single
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thing plus it deals with one of my
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passions i suppose which is football
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soccer for you americans major sponsors
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should reconsider supporting fifa now a
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byword for global corruption big money
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fifa world cup spenders speak to the
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world like they're in a parallel
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universe
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whenever i'm watching the world cup or
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even the qualifiers i just forget that
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fifa is a non-profit because this
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massive organization
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that sells massive tv deals and shapes
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the entire country before a world cup is
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a non-profit just like that charity on
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the corner of your street but again what
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is the purpose what is the mission of
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fifa well to take the sport of football
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to all corners of the world while making
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it better and and yes i i think that
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they have after all more and more people
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watch the world cup now more than ever
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fifa has become a giant money machine by
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selling licensing and broadcasting
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rights plus ticket sales from the actual
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world cup so in 2018 fifa had 4.5
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billion dollars in revenue and this is a
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world cup year this is the russia world
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cup year but in a non-world cup year
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they still managed to get 300 million
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dollars in revenue so it makes perfect
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sense for a nation to host the world cup
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i mean for fifa it does it's going to
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walk into your nation and make as much
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money as possible leaving you oftentimes
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just crumbs plus fifa as a non-profit
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that it is always demands for tax
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exemption once it hosts a world cup
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basically when fifa comes in stadiums
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and nearby areas
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suddenly become tax-free because it's
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fifa so in short the host nation pays
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for everything and gets very very little
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in return still countries countries
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believe in the power of hosting a world
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cup so they do
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they do whatever they can to win this
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bid so fifa has been hit with scandal
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after scandal over the last decade as
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whistleblowers have come out and just
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revealed the truth of what goes on this
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real life hagrid is chuck blazer for two
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decades he worked with fifa and racked
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up 29 million dollars in credit card
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bills he loves this lavish lifestyle
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that included having an apartment in
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trump tower just for his cats so blazer
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just rubbed shoulders with most
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prominent executives but it turns out
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that he was also taking bribes to ensure
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world cup bids for france and south
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africa and he of course was not the only
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one this was a shitstorm of a corruption
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case a bunch of other cases appeared
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jack warner for example the head of
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concacaf took in 10 million that were
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supposed to be used for developing
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football in the caribbean and use 1.6
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million dollars of that money to pay for
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his personal loans in 2011 a
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whistleblower revealed that qatar had
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paid 1.5 million dollars to fifa
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executives and officials to ensure that
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the country would win this year's world
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cup bit and of course these and other
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bunch of fifa scandals rocked fifa to
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the core to the point in which
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setbladder the president had to resign
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in 2015 and he of course was no saint
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himself his name
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is
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embedded in most of these accusations
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and with fifa we come to this typical
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case with non-profits to massive
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salaries sep ladder had a salary of
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three million dollars would get this a
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12 million dollar a year bonus his
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replacement jani infantino has a much
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more moderate they learn the lesson here
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much more modest salary just 1.5 million
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dollars and we will restore
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the image of fifa and the respect of
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fifa and everyone in the world will
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upload us and we'll upload all of you
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there's no wonder why people
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often compare fifa to the mafia sure it
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has grown the sport of soccer to
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unprecedented heights but at the same
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time
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it's become so powerful that you can't
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help but wonder if it will always be
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corrupt or what is their true motivation
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in the end in fact it's scary to think
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that these non-profits have so much
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power it almost makes me want to avoid
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them
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almost and i say almost because it's
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really unfair to leave out the
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non-profits that are really doing good
[980]
work and doing great things none of
[982]
these are sponsored in any way
[984]
foundations like the naacp legal defense
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and educational fund the rotary
[988]
international the environment defense
[990]
fund and the dn fossee gorilla fund
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these are just some of the hundreds of
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organizations that do
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again truly great work and most
[998]
importantly they show how they spend
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their donations so let's say that you
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want to work with a nonprofit that's
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that's really great if you want to be
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more involved the best thing to do is
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just to ask and to do your research all
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these organizations have to give you
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their financials there are still a lot
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of sites that rate charities and that
[1016]
rate nonprofits just go online and check
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and make sure that the money that you're
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giving actually goes to that cost that
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you're supporting i know that we trashed
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a lot of non-profits in this video but
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there is always room for positive action
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in fact if you know of any nonprofits
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that are doing great work a good place
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to start is just to put them in the
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comments i think that everybody will
[1037]
appreciate it thanks a lot for watching
[1038]
guys remember the first five comments on
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description hit that bell button and
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we'll see you next week
[1052]
[Music]
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you
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