Marley Whorenstein
kiwifarms.net
- Joined
- Aug 9, 2023
I am no legal expert, but there's got to be laws against using charity as a front to piss funds away on frivolous personal crap. I still suspect Anus could have pocketed a chunk of $, but that's just speculation.
Chatgpt
Yes, there are laws and regulations in most countries — especially in the U.S. — that prohibit using a charity as a front to misuse funds for personal gain. Here’s a breakdown of how this is handled, particularly in the United States:
Chatgpt
Yes, there are laws and regulations in most countries — especially in the U.S. — that prohibit using a charity as a front to misuse funds for personal gain. Here’s a breakdown of how this is handled, particularly in the United States:
- Charities with 501(c)(3) status must use funds strictly for charitable purposes.
- Private inurement is forbidden: insiders (e.g., founders, directors) cannot personally benefit from the organization’s income or assets.
- Violations can lead to loss of tax-exempt status, fines, and personal liability for individuals involved.
- Each state has a Charitable Trust Act or similar regulation.
- Attorneys General oversee nonprofits and can investigate fraud or misuse of funds.
- Misuse can result in civil or criminal penalties, including fraud, embezzlement, or breach of fiduciary duty.
- Spending donations on lavish trips, luxury items, or personal expenses.
- False representation of what donations will be used for.
- Lack of transparency in financial reporting or refusing to release Form 990 (required annual IRS form).
- Civil suits from donors or the state.
- IRS excise taxes under "intermediate sanctions" (IRC Section 495
.
- Criminal charges, in extreme cases, for fraud or embezzlement.
- The Red Cross, Wounded Warrior Project, and other nonprofits have faced investigations for alleged misuse.
- Smaller or influencer-run charities are increasingly scrutinized when they lack transparency or operate informally.
- Check the nonprofit’s Form 990 on GuideStar or ProPublica’s Nonprofit Explorer.
- Report suspected abuse to:
- The IRS (Form 13909).
- The state attorney general’s office where the nonprofit is based.
- Better Business Bureau (BBB) Wise Giving Alliance.