NPO Headlines 12.27.23
Congressional hearing puts more pressure on nonprofits … Christians more likely to give to charity than others … Harry and Meghan’s foundation flops
Nonprofits … Not Flying Under the Radar Anymore
Following up its August investigation of nonprofits’ involvement in U.S. elections, the U.S. House Committee on Ways and Means’ Subcommittee on Oversight reconvened on December 13, bringing in experts to shed light on the problems.
Nonprofit watchdog groups have been sounding the alarm for months [here and here] about how some very wealthy (but mostly unknown) 501(c)3 and 501(c)4 nonprofit organizations have been abusing their tax exempt status, particularly in connection with U.S. elections.
In the hearing there appeared to be bipartisan agreement on at least one point: foreign nationals should not be allowed to indirectly interfere with American elections via contributions to 501(c)4 organizations.
Money from Foreign Nationals
The person of interest in this matter is Swiss billionaire Harsjorg Wyss. In July, Americans for Public Trust (APT) published a report outing Wyss as a foreign national, who by federal law, is prohibited from directly or indirectly influencing U. S. elections.
The report claims, despite federal prohibitions, Wyss has directly funded U. S. political candidates. More recently he has adopted the political tactic of choice: a twin set of nonprofits, The Wyss Foundation, a 501(c)3 organization and the Berger Action Fund (BAF), a 501(c)4.
According to AFT, “In 2021 along, BAF doled out a total of $72.7 million … to groups focused on promoting and supporting President Biden’s agenda.”
His contributions are called “dark money” because he is able to make contributions to the 501(c)4 BAF nonprofit anonymously, allowing him to stay unaccountable in the background.
What the Experts Said
House Ways and Means Committee Chairman Rep. Jason Smith (R-MO) made clear that the issue is money from foreign nationals. In his opening statement he told the committee, “As we protect our electoral process from foreign influence, we cannot sacrifice or risk donor privacy for Americans.
Legislative Attorney Justin C. Chung kicked off the testimony by documenting the astronomical growth of the nonprofit sector in the last thirty years. He reported 546,100 501(c)3 organizations in 1992. By 2022, there were 1.5 million (c)3s.
In response to a question, Chung later told the committee the nonprofit sector currently accounts for $5.5 trillion in assets, making it a very powerful and important sector of the economy.
Scott Walter, president of Capital Research Center, while focusing primarily on Wyss and foreign money, pointed out it is appropriate to also criticize American billionaire donors “when they improperly interfere with American politics as when the Zuckerbergs gave a half billion dollars to manipulate the 2020 elections. “
Stewart Whitson, Legal Director at the Foundation for Government Accountability, presented his organization’s analysis of the Zuckerbergs’ donations to Center for Tech and Civic Life (CTCL), a 501(c)3 nonprofit.
He noted that the infusion of Zuckerbucks into targeted, Democrat-leaning jurisdictions “drove up voter turnout in blue districts and allowed partisanship to weasel its way into the one part of elections that is supposed to be non-partisan.”
He summed up: “It appears that CTCL … used Zuckerbucks to hijack and transform the government itself into a partisan get-out-the-vote tool.”
The final expert witness, University of Pittsburgh Associate Professor of Law Philip Hackney, said, “Where we fall as a nation is in enforcement.”
He warned that the IRS budget for the exempt organizations division is inadequate, particularly in view of the rapid growth of the nonprofit sector.
Hackney concluded: “There is good reason to believe that taxpayers are able to take advantage, and indeed are taking advantage, of this system to intervene in politics in ways that violate the tax law.”
Both Republicans and Democrats need to be on alert; their activities under the guise of nonprofits are under scrutiny in an unprecedented way. Lawmakers have awakened and are watching.
Yep, Christians Are the Most Generous People
For the 13th year in a row, the American Bible Society released its State of the Bible report. The 2023 edition’s findings on generosity concluded: “When people fully engage with biblical teaching, they are much more likely to donate generously.”
It once was well-known among fundraisers that the best predictor of whether someone would make a charitable gift, to any cause, was whether he regularly attended church or synagogue.
The American Bible Society’s report, which looked at charitable giving by all Americans, could be interpreted as a blueprint for fundraisers. Want to know where to find the best prospects for your charity? Read this report’s chapter on generosity first.
The report divided Americans into non-Christians, non-practicing Christians, and practicing Christians. It found that practicing Christians (95%) are almost twice as likely as non-Christians (51%) to donate to charity. Non-practicing Christians shouldn’t be counted out with a 68% likelihood of giving.
Making charitable gifts is obviously tied to one’s capacity to give. The more someone earns the more she is able to give. But the report noted, “the percentage of income donated by those who give runs much higher among lower income groups.”
The report also looked at other demographic patterns, noting that Elders (people age 78+) are most likely to give while Millennials are the least.
Stage of life has a major impact on giving. Families with children in college or children who are approaching college have the highest expenses.
So who is most likely to make a charitable gift? According to the American Bible Society, he/she is a practicing Christian age 78 or older.
A person of modest income in that demographic is most likely to give sacrificially. Think of Jesus’ story of the widow’s mite.
The best major gift prospects are practicing Christians who are 78+ and have earnings at the higher income levels.
Fundraising isn’t rocket science, nevertheless it helps to have this report’s confirmation of what we have known for some time -- people of faith tend to give more and the poor are more likely to give sacrificially.
The Royal We’s Charitable Foundation Floundering
With this month’s release of Duke and Duchess of Sussex’s release of their foundation’s 2022 IRS Form 990, royal watchers now have two years of the couple’s philanthropic enterprise to analyze.
Critics are quick to point out the couple’s foundation ended 2022 in the red with expenses exceeding revenue by $674,485.
Founded in 2020, the Archewell Foundation started off with a bang … sort of.
The 2021 990 showed $13 million in revenue. But there were only two gifts … $10 of the $13 million was from Donor One, $3 million from Donor Two.
The Sussex’s 2022 foundation filing again shows only two gifts … each at $1 million.
Not really setting the world on fire, are we?
My best advice: The Sussex’s clearly need a meeting with the Clintons.
When I think of Swiss Billionaires, I think of USB and HSBC and international money laundering banking for rich people to hide ill gotten gains and not pay taxes and make their dirty money made clean and use their money to install a one world death and slavery system on this world.
When I think of Mark Zuckerberg I think how he is having his computer programs for his META companies (which include Facebook, Instagram, Occulus, WhatsApp and Messenger) to facilitate child trafficking and organized pedophilia rings.
Read this lawsuit...
https://cplaction.com/cpl-article/meta-lawsuit/
cplaction.com
LAWSUIT: Is Meta a child sexual predator?
ChildProtectionLeague
Excerpt:
"Investigators posing as minor children set up fake accounts which revealed how Meta has been lying about making the platforms “safe” for minors and that they are “policing” child porn content. According to a recent substack post by Attorney Jeff Childers, the complaint:
“…goes on to describe how investigators penetrated a dystopian world of transactional child porn and even live human trafficking, all seemingly facilitated by Meta’s software, which not only permitted the posts but helped pedophiles find each other, the content, and kids. Facebook and Instagram persistently pushed ads for adult sexual content to accounts that New Mexico investigators created posing as children.”
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""Therefore take unto you the armour of God, that you may be able to resist in the evil day, and to stand in all things perfect."
Ephesians: 6:13
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I believe we are right now in "the evil day."
I try to think how there could be a traditional Catholic 501c3 (religious, educational, charitable) organization that is not conformed to this evil world system, and I think things are too far gone now.
I wish we could set up little communities like the Benedictine monasteries used to have in Europe where the poor families lived and worked on the grounds of the monastery in the Middle Ages.
An organization that takes large donations from billionaires is heading for big trouble.
I like the story of George Muller in Bristol England who took in the orphan street children in London and provided good care and education in his schools and homes.
He prayed to God for his needs in serving those children and God always miraculously provided for his dire need at just the right time.
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"I appeal to you therefore, brothers, by the mercies of God, to present your bodies as a living sacrifice, holy and acceptable to God, which is your spiritual worship. Do not be conformed to this world, but be transformed by the renewal of your mind, that by testing you may discern what is the will of God, what is good and acceptable and perfect. "
Romans 12:1-2
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I wish we could pray and live modestly and not get involved in the power systems of this wicked world system and just let God provide our simple needs.
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God bless us each and every one in the Name of the One Who is Truth.