Non profits and tax exempt organizations were given tax exempt status to raise funds and do the work our state and federal governments cannot afford to fund. The tax exemptions amount to over $200 billion per year kept from the U S Treasury. The vast majority of these funds are now residing in their endowment funds. When added together the total non profit charity and tax exempt foundation funds total over 13 trillion dollars.

Congress needs to enact legislation that sets a ceiling on the amount any one organization can have in their endowment fund and to increase the amount they spend from the very miniscule 5% to 50% of each years fundraising, foundation and sponsorship income. These are tax exempt dollars so very needed in our economy at this time. Tax exempt foundations need to have their own mission and not be allowed to just pass funds through to others to do the work while they take advantage of the tax code to grow their wealth.

Money is power and power corrupts. If the money is tax exempt, then it needs to be used to fund the things government gave them tax exempt status to do.

The government has a duty to make charities accountable.  As caring, giving citizens, we have a responsibility to give our money wisely.  Consider giving to charities where large portions donated go to the mission rather than salaries and administrative costs.  The American Cancer Society, for example, in 2007 received $1,039,325,000 in public support while spending 45.7% of that ($475,108,000) on salaries, benefits and payroll taxes.  We also have a duty to investigate those to whom we donate funds.  The Better Business Bureau is an excellent source as it rates twenty key points to be considered.  For example, Campaign for Tobacco-Free Kids does not meet six of the twenty criteria in a report issued June 2007 (expiring June 2009).  Absent are key components such as:  “does not meet this Standard because the board of directors does not review the performance of the chief executive officer (CEO) at least once every two years”; and “does not meet this Standard because its annual report for the past fiscal year does not identify the total program service expense, the amount spent for each of its major program activities, fund raising or administrative expense”.  Donors should require such information is made transparent.  Give locally to food pantries, children’s hospitals, etc. and help support local communities.   America is a very generous and caring country but we need to donate wisely and do the research.