Thread: CEO of Charity Housing Migrant Kids Sports a $1.5M Salary

Originally Posted by JohnDoe2

(CNN)As Juan Sanchez tells it, he spent years as the underpaid leader of the non-profit that is now providing housing to migrant children who were recently separated from their parents.


His salary at Southwest Key Programs Inc. was low, he said, and there was no health insurance or retirement plan.

How low was it? A paltry $100,000 per year? How many actual charity workers can make that claim? Pastors of churches (with the exception of the mega churches)? Charity is giving, donating! This is profiteering. $1.5 per year for one charitable person? Sounds like a profitable operation to me.

Originally Posted by JohnDoe2

NO. I'm providing people with a way to contact them if they want to give them a piece of their mind.

So it took me asking you to draw that out. You could have started with a comment that "Here's ways to give them a piece of your mind!" Then I wouldn't have to speculate if you were a supporter or a critic!

Originally Posted by jtdc

How is that "charity"? And how can this be called a "non-profit"?

The Clinton Foundation is nothing but profit. By contrast, President Trump's charity reportedly paid out more money than it took in, with the Trump's contributing more.

(They should do away with all non-profits.)

Non-profit CHARITY is a tax status. The states and federal government set the rules for who is and who isn't a charity.
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Are All Nonprofit Organizations Tax-Exempt?

•••BY JOANNE FRITZ
Updated April 29, 2018

The answer to that question is complicated because there are several types of nonprofits.

First, let's clarify what tax-exempt means. A fully exempt nonprofit may be exempt from most federal income taxes and some state taxes, such as sales and property taxes. Also, its donors may be able to take a tax deduction for their donations to the organization.


Some nonprofits enjoy the first exemption but not the second.

That's because there are 29 types of nonprofit organizations within the tax code. For instance, your local Chamber of Commerce probably is a 501(c)(6). Your recreational club may be a 501(c)(7). And your child's daycare is likely a 501(k).


The charitable non-profits that we are so familiar with are 501(c)(3) organizations under the U.S. tax code. They receive income tax exemption, and their donors may take a tax deduction for their donations.

The tax situation can be murky, however, since some activities that a charitable non-profit could be taxed, typically as an unrelated business activity. That could occur when a nonprofit runs a business venture to supplement its income and when that activity is not related to the nonprofit's core mission.

Likewise, individuals can only take a tax deduction when they donate to a charity if they itemize their deductions on their tax return.

Charitable nonprofits must apply to the IRS for 501(c)(3) status. It is not conferred automatically. And some charitable activities and groups do not apply because they are small or temporary. Some charitable organizations choose to be unincorporated nonprofit associations which often do not apply for tax exemption. Churches and religious organizations are treated a little differently than "public" charities.

It is all to point out that nothing is simple, especially when it comes to the US tax code.

Charitable nonprofits that wish to become 501(c)(3) tax-exempt must meet three tests:

The Organizational Test

Tax-exempt nonprofits must be organized for a lawful purpose in one of these categories:

• Educational
• Religious
• Charitable
• Scientific
• Literary
• Testing for public safety
• Fostering certain national or international amateur sports competitions
• Preventing cruelty to children or animals

The Political Test

Organizations seeking 501(c)(3) status must state explicitly in their organizing papers that they will not participate in any political campaign on the behalf of any candidate or make expenditures for political purposes. There are 501(c) groups that can engage in these activities, but not 501(c)(3) organizations.

The Asset Test

A nonprofit's charter must state that it prohibits distribution of assets or income to individuals (except as fair compensation for their services). The organization must also explicitly state that it will not be used for the personal gain or benefit of its founders, employees, supporters, relatives, or associates.

The Bottom Line

In summary, there are many types of nonprofit organizations. Not all are charitable nonprofits. Only 501(c)(3) organizations receive both favorable tax treatment plus tax deductions for their donors.

Charitable organizations must apply to the IRS for 501(c)(3) status and they must meet the three tests that define charitable organizations: the organizational test which has to do with mission; the political test that has to do with political neutrality; and the asset test, which requires that the organization's assets be used for the public good.

https://www.thebalancesmb.com/what-q...mption-2501886

Originally Posted by JohnDoe2

(They should do away with all non-profits.)

I agree! And that might be one benefit of a FairTax. Unless the Congress votes to subsidize them, they will pay taxes like the rest of us!

DO NOT HOUSE THEM...DEPORT THEM OVER INTO THE CARE AND CUSTODY OF THEIR PRESIDNENT!

THIS MUST STOP NOW!

According to recent tax filings, Sanchez received nearly $1.5 million in total compensation in 2016 as CEO of the non-profit he founded more than 30 years ago. His salary nearly doubled from the year before, when he was paid $786,822.

The charity is expected to rake in about $500 million in federal contracts this year, CNN reports.

Trump is supposedly the "great negotiator". Guess he needs to get to work on this! This situation reminds me of a case I remember from years ago where the Air Force was paying $800.00 for toilet seats! The mismanagement of our tax dollars by government has always been a problem.

Nonprofit operator of shelters for illegal alien kids facing more questions

Originally Posted by jtdc

I agree! And that might be one benefit of a FairTax. Unless the Congress votes to subsidize them, they will pay taxes like the rest of us!
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Yes, under the FairTax, these "charity" frauds are basically shut down, put out of business, because there is no "tax deduction" for donations and they are treated like every other business so that when they sell a good or service for money at the final point of sale which this would be, they charge 23% like every other business.

Originally Posted by Judy

Yes, under the FairTax...

I knew if I dared allow a complement to one aspect of the tax, you would take it as total endorsement. But if income tax allowed no deductions it would be even better!

No deductions for donations AND no exemption from income tax would make it better, still not as good as the FairTax, though.