Earlier news reports say the IRS will examine Form 990, the main public disclosure documents for NPO 501c's (will also include charities and foundations), to determine whether accounting fraud and tax evasion is taking place, and whether the compensation of specific individuals is excessive in order to transfer assets, and, and whether instances of questionable compensation practices may evade the IRS, and US banking laws.
Reportedly NPO's use line items like "legal fees" to hide wrongdoing.
The IRS has received complaints that 501C's are being used to run just about every kind of off-the-books accounting fraud.
In one case, the president of a non-profit organization was embezzling donations and was engaging in accounting fraud by having the NPO pay his entire apartment lease which was fraudulently booked on non-profit documents as a "business office."
We've been trying to get someone to pay attention to the syndicate in our area, if average citizens can see the 'front operations' surely we can get some legel action taken. NOT, the situation is so bad in our area nobody will standup to them. Everybody is afraid of losing the money for the city, but these bozo's don't see the money isn't making it into the city. It's floating in a number of hands and is untouchable by any small NPO. And these guys are what I affectionately call the 'Green Mafia.'
BENY J. PRIMM. M.D.
Founder/Executive Director,
Addiction Research and Treatment Corporation
President,
Urban Resource Institute
http://tinyurl.com/4s6j2
Jeremiah A. Barondess, MD, is President of The New York Academy of Medicine and Professor Emeritus of Clinical Medicine at the Cornell University Medical College
http://www.nyam.org/about/barondess.shtml
It's not just paying the execs--it's expensing them all kinds of perks. I know of two non-profits (You can follow them on guidestar.org) where some rich types first donate money to their "vanity philanthropy"--then direct that philanthropy to pay for their "adventure vacations." Camping trips to antarctica, submarine rides to the Titanic... these kinds of vacations cost $50k/person . Tax deductable, because it's "scientific exploration"--LOL!
Shouldn't the pay in some way reflect the size and success of the organization? If a person is running a large successful orgnaization, even if it is non-profit, these salaries might well be acceptable.
I don't think I would slam any of these people simply because the IRS is getting involved. I can't imagine the IRS is the friend of anyone, especially Freepers.
Blue Cross and Blue Shield executives should be on this list.