Frequently yes it is. Look into celebrity charities. Frequently they have a family member running it and most of the employees are family or friends. Most of the money goes to family with at most 50% going to the actual cause.
Yeah obviously they have employees who get paid, but if a large portion of new donations just paid a CEO pay, that’s not exactly discreet fraud when the IRS comes around looking.
Then it’s not a non-profit now is it?
Frequently yes it is. Look into celebrity charities. Frequently they have a family member running it and most of the employees are family or friends. Most of the money goes to family with at most 50% going to the actual cause.
Non profits can still have employees that get paid, they are just required to report who gets paid and how much (at least in my state).
Yeah obviously they have employees who get paid, but if a large portion of new donations just paid a CEO pay, that’s not exactly discreet fraud when the IRS comes around looking.