It just became more difficult to use a non-profit for personal gain in New York

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January 12, 2014- By Steven E. Greer

There are certain templates for corruption commonly used by schmucks in New York. As previously reported, one of them is to form a “community center”. The awarding of   construction and other operational contracts can be the vehicle by which to steer lucrative bribes and kickbacks toward local officials. Several State Assemblymen were arrested related to community center bribes.

Another template for corruption widely used in New York is the abuse of non-profit status, tax-exempt, funds. The non-profit 501c originations, governed by the State Attorney General’s office, always have noble goals listed in their formation documents, and receive tax-exempt status as a result.

However, unethical executives of the non-profits can then use those tax-free revenues for improper payments to other for-profit organizations, often owned by friends and family, or cronies, of the executives of the non-profits. In some brazen cases, the CEO’s of the non-profits actually pay their own for-profit company that they run on the side, in the same office building address. The practice is so commonplace in New York that few even realize it violates the laws governing non-profits.

To address this metastatic corruption,