We’ve spent some time early on in the semester talking about what makes a non-profit, and the qualities necessary for it. I’ve long argued that an organization acting in the public benefit should be a strict requirement for one, and found a piece this week that illustrates this point.

It speaks to examples in which people had declared non-profit status and began defrauding the government and others with said status. It grows concerning to see this emerge as a potential trend, as it exposes non-profits to potential scrutiny.

With their great public benefit, it would incredibly unfortunate to see the sector suffer over those who seek to abuse it. As such, I believe that providing a public good for the organization should be a key part of the forms to receive non-profit status.

https://nonprofitquarterly.org/2017/07/07/shape-shifting-justifies-profit-nonprofit-transition/