The Nonprofit Industrial Complex and the Corruption of the American City

by Jonathan Ireland

Yet nonprofit organizations are frequently the exact opposite of what they appear to be. As a consequence of the benefit of the doubt provided to nonprofits, there is rarely enough oversight to guarantee that they are doing what we pay them to do. In some cities, upwards of a billion dollars of public funds are paid to nonprofit organizations every year with glaringly insufficient safeguards to ensure that the money is used in a manner likely to serve the public interest.

This money is then spent in ways that would shock the taxpayers whose hard-earned dollars are being effectively stolen from them. Non­profits that self-righteously declare themselves providers of homeless services actively lobby to make homelessness worse in order to increase their own funding; nonprofit organizations hire convicted felons—including murderers, gang leaders, sex offenders, and rapists—who go on to commit more felonies while receiving hundreds of thousands of dollars in government contracts; and the executives of nonprofits, the very people in charge of institutions whose stated purpose is not to make money, earn millions of dollars while catastrophically failing to deliver the public services we are paying them to provide.

And as all of that is going on, the nonprofits in question receive tax breaks from the IRS, ensuring that the incompetent organizations wors­ening your city’s homelessness crisis exert their corrupting influence all the way to the halls of power in Washington, D.C.