Streamline the deal cycle for non-profit organizations

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[Music] naive 20 year old me used to think of charities of non-profit organizations as truly selfless acts but you probably know where this is going fifa a non-profit organization founded two to develop and to improve the beautiful sport of soccer has 1.8 billion dollars in cash reserves paid its president about 3 million a year in salary its top executives went all to jail a few years ago for laundering money and taking bribes this pastor for example he used his non-profit to essentially become a millionaire and then fly in his own private jets jesus was physically on the earth today he wouldn't be riding a donkey he'd be in an airplane preaching the gospel all over the world these are just two of so many stories we found on how easy these organizations lose their way and it's no coincidence that so many celebrities and millionaires have all established their own foundations but even worse than this even worse than just saving taxes nonprofits raise money they raise money from people like you and me who want to help sometimes but few people know the truth the truth of where that money sometimes ends and how little it actually goes to that cause that you're that you think that you're supporting so what is it about the non-profit organization that makes it the perfect cover-up for this crap stealing tens of millions of tax dollars meant for child nutrition programs the non-profit took over 300 000 in federal funds to just shy of 200 million dollars in 2021 alone so when you start a normal company you incorporate it you define a set of shareholders you issue more shares to investors and then if things work out you sell it and then you retire in costa rica when a traditional company closes a profitable year it may choose to save that money for later or it may pay it out to its investors as dividends the way this works at least in the u.s is first the irs will take its cut of the company profits that's revenue minus expenses then if the investors agree they make a dividend distribution so all the profits are divided between all the shares that have been issued for that company and each shareholders gets some cash proportional to their share ownership which is taxed again by the way but still this is the most direct legal straightforward way to earn money from the company that you started or from your investments but it is expensive because it is double tax so there must be another way right well of course there are plenty of ways people will always find ways to get fewer taxes go watch your video on the pendulum papers but nonprofits are just one of them and if you know your way around the system you can absolutely use them to your advantage so if you're opening a nonprofit organization there isn't much difference with a for-profit at first you have to do some basic things like defining a name creating a governing board define a mission statement and all those bureaucratic details then you have to incorporate it and register just like a normal business you have to file for this tax exempt status if you get this approved then you're all set but the authorities are going to be on top of you nonprofits can make revenue yes they can pay for things they can employ people and yes they can have some additional regulations for example they have to file yearly forms to justify their income and their expenses and with these forms of authorities sort of try and control that there isn't any foul play but of course of course if you play your cards right you can end up with an organization that you control maybe through somebody else that just does what you tell them to do and an untaxed bucket of money and you can use that cash for things like jets so this is jesse to plant that he is a pastor i'm sure his church does great things for a lot of people i don't doubt it but personally i just don't trust the guy so why would you it's not the weird hair or the creepy smile it's that he uses his churches and his non-profits to buy jets he asked members of the congregation to give him 54 million dollars to pay for a private jet why you ask well because flying coach is full of demons it's not about possessions it's about priorities he has said that flying commercial would require him to stop repeatedly waste a lot of fuel and slow down his job as a pastor and that the tiny seeds and crappy food wouldn't let him talk to god and here's where it gets all more twisted he asked for a donation true donation of 54 million dollars to do that and you see the ministry can say that it is an asset it is an asset that the pastor uses to spread the word of god which is the non-profit's purpose so as far as the law goes it's still fair play even if it's a private freaking job oh and and by the way that was that was his fourth private debt this was paid cash this was paid cash this was paid cash and the new ones will be paid cash also so when the media questioned him this is what he said i can't even read this i'm not asking you to pay for my plane i'm asking you to pray for my plane that's the actual quote god told me to have that plan and then in the context of a non-profit that's there's nothing stopping him from doing that so this crazy bastard is just one example of how nonprofits can play with the numbers after all the expenses tab in your financial model wink can hold up anything after all there doesn't seem to be much control when it comes to conflict of interest with these foundations now we've all heard of course of the bill and melinda gates foundation this non-profit is famous for donating to the latest and to the greatest education medicine and research from the outside if you're not part of q anon it's it seems that everybody loves it right after all they have and this is true they have donated billions of dollars into global health with the latest technology on hand hey guys sorry to interrupt the video but i wanted to talk about our sponsor for today which is turn mogul so for any business tracking your metrics your kpis is vital if you don't do it you might run into trouble as we have but what has saved us through all these years has been the data that we get from turn mobile we generate revenue from a lot of sources from this youtube channel from our consulting from sas and we consolidate all of that into their platform and for the sas part which is their bread and butter you can run cohort tables you can run lifetime value reports and you can even filter customers by tags and see how the behavior of these metrics left and value return varies by customer segments so for companies under ten thousand dollars in mrr turn mogul is free and you can use it by signing up at turn mogul.com if you're over 10k in mrr you can still write off 600 of your first year if you use the code slightly back to the video bill gates and his wife melinda have been using their influence and wealth to advance healthcare around the world this foundation hovers on a very thin line between right and wrong so here's how it goes like in in 2020 the gates foundation donated around 250 million dollars in grants to giant corporations lg or ericsson merck and pfizer so sure these companies are making great strides in topics like the vaccine like the kova vaccine and a bunch of new technologies but at the same time the gates foundation owns stock in all of these corporations now is that forbidden no but it can absolutely blur the lines and make corporations believe that they too even with their massive size are worthy of billions of dollars in donations now donations are essential for non-profits but this gets a lot darker it gets a lot darker when these organizations are not only the cash reserve for their owner but do the fundraisers as well yeah let's take another controversial non-profit oh i'm gonna get burned for this but okay so let's talk about the nra nra history spends 150 years and its core goal has evolved through it all first it aimed to improve marksmanship and then shift to promoting gun education and gun safety and then lobbying for guns threats but in later years the nra became desperate for donations it has deficits of up to 40 million dollars so it's increased its fundraising like crazy but hold on hold on the nra is this huge organization how did it get to this point this all started when the nra decided to focus change its focus from education to lobbying they started promoting this gun loving lifestyle and openly criticized those who criticized the organization in fact it stopped funding gun safety the non-profit's budget showed that it had reduced that to less than 10 of its budget for gun education and for safety and that it had shifted the rest to just communications it was now this media company that had become a piggy bank for its directors corruption within the nra was so rampant that wayne lapierre one executive paid 13.5 million dollars of the nonprofit's money to a travel consultant what the hell is a travel consultant lapierre also spent almost 300 000 in a beverly hills men's store 250 000 and traveled to italy hungary and the bahamas one nra member dave butts received 400 000 as payments for consulting on public outreach and then the nra lobbied against background checks for gun owners and even spent 1.6 million dollars in six months campaigning against it and that is a major no no nonprofits can lobby but it cannot become a substantial portion of their efforts so all these chaos finally sparked some legal action so in 2020 uh new york's attorney general leticia james opened a full-on investigation and alleged that the nra had failed to continue its core goal of promoting gun safety for years of self-dealing and illegal conduct that violate new york's charities law and undermine its own mission and plus of course there was all this corruption stuff and washington dc followed suit the accusations were very explicit that the nra was just too corrupt it was no longer focused on its goals instead again just a piggy bank for its directors but that is kind of the problem with nonprofits it's easy to justify and hard and complex to disprove the nra could say all of these expenses were necessary and we kind of would have to believe them in the current state of the law okay so let's maybe assume that not all the money is laundering let's let's go to a different world let's assume that someone really really really wants to help pick plastic from the ocean or i don't know help the pandas so another massive problem with nonprofits it's how much money gets lost on the way okay so let's say that you donate a hundred dollars to a campaign in omaze 65 of those dollars will be used to pay for the reward and for the costs of the reward just that 20 are for omaze's admin fees and they're a for-profit organization by the way and after all these fees only 15 out of your 100 donation will make it to the actual nonprofit which of course of course most certainly has costs as well so if you really care about donations all you're left with is doing research so you have sites like charity navigator that can tell you how much a non-profit pays in overhead expenses if you want to help that panda you should respect that 33 rule this means that any nonprofit that spends more than 33 percent should raise a red flag to you and the problem is that there are a lot of them that don't work as efficient so that panda might get either 87 or a meager 20 and in some cases it's even worse if you heard about the cancer fund of america you might think that this is a professional solid organization that helps fund cancer research right if you go to their website that's what they'll tell you and then if you look at their financials you'd see that they in fact donate to cancer research but that's after they pay james reynolds the founder 230 000 a year the fund also pays for another 24 family members salaries and you might think that such a high salary means that there's i mean there's probably a lot of money coming in right and you have to manage it well no not really the cancer fund of america donates 2.5 of all donations to research and support 2.5 of all the money that they get but once again as a non-profit organization they can't this is legal and there's nothing that can stop them so that's why we need to have sites to rate these charities and that's why the cancer fund of america has the worst possible rating in charitable watch since 1993. at least they've been consistent before we finish i want to talk about one last case in particular it brings all of these loopholes together into into one single thing plus it deals with one of my passions i suppose which is football soccer for you americans major sponsors should reconsider supporting fifa now a byword for global corruption big money fifa world cup spenders speak to the world like they're in a parallel universe whenever i'm watching the world cup or even the qualifiers i just forget that fifa is a non-profit because this massive organization that sells massive tv deals and shapes the entire country before a world cup is a non-profit just like that charity on the corner of your street but again what is the purpose what is the mission of fifa well to take the sport of football to all corners of the world while making it better and and yes i i think that they have after all more and more people watch the world cup now more than ever fifa has become a giant money machine by selling licensing and broadcasting rights plus ticket sales from the actual world cup so in 2018 fifa had 4.5 billion dollars in revenue and this is a world cup year this is the russia world cup year but in a non-world cup year they still managed to get 300 million dollars in revenue so it makes perfect sense for a nation to host the world cup i mean for fifa it does it's going to walk into your nation and make as much money as possible leaving you oftentimes just crumbs plus fifa as a non-profit that it is always demands for tax exemption once it hosts a world cup basically when fifa comes in stadiums and nearby areas suddenly become tax-free because it's fifa so in short the host nation pays for everything and gets very very little in return still countries countries believe in the power of hosting a world cup so they do they do whatever they can to win this bid so fifa has been hit with scandal after scandal over the last decade as whistleblowers have come out and just revealed the truth of what goes on this real life hagrid is chuck blazer for two decades he worked with fifa and racked up 29 million dollars in credit card bills he loves this lavish lifestyle that included having an apartment in trump tower just for his cats so blazer just rubbed shoulders with most prominent executives but it turns out that he was also taking bribes to ensure world cup bids for france and south africa and he of course was not the only one this was a shitstorm of a corruption case a bunch of other cases appeared jack warner for example the head of concacaf took in 10 million that were supposed to be used for developing football in the caribbean and use 1.6 million dollars of that money to pay for his personal loans in 2011 a whistleblower revealed that qatar had paid 1.5 million dollars to fifa executives and officials to ensure that the country would win this year's world cup bit and of course these and other bunch of fifa scandals rocked fifa to the core to the point in which setbladder the president had to resign in 2015 and he of course was no saint himself his name is embedded in most of these accusations and with fifa we come to this typical case with non-profits to massive salaries sep ladder had a salary of three million dollars would get this a 12 million dollar a year bonus his replacement jani infantino has a much more moderate they learn the lesson here much more modest salary just 1.5 million dollars and we will restore the image of fifa and the respect of fifa and everyone in the world will upload us and we'll upload all of you there's no wonder why people often compare fifa to the mafia sure it has grown the sport of soccer to unprecedented heights but at the same time it's become so powerful that you can't help but wonder if it will always be corrupt or what is their true motivation in the end in fact it's scary to think that these non-profits have so much power it almost makes me want to avoid them almost and i say almost because it's really unfair to leave out the non-profits that are really doing good work and doing great things none of these are sponsored in any way foundations like the naacp legal defense and educational fund the rotary international the environment defense fund and the dn fossee gorilla fund these are just some of the hundreds of organizations that do again truly great work and most importantly they show how they spend their donations so let's say that you want to work with a nonprofit that's that's really great if you want to be more involved the best thing to do is just to ask and to do your research all these organizations have to give you their financials there are still a lot of sites that rate charities and that rate nonprofits just go online and check and make sure that the money that you're giving actually goes to that cost that you're supporting i know that we trashed a lot of non-profits in this video but there is always room for positive action in fact if you know of any nonprofits that are doing great work a good place to start is just to put them in the comments i think that everybody will appreciate it thanks a lot for watching guys remember the first five comments on any of our videos get access to our free office hours so make sure that you're subscribed more office hours are available with the link in the description hit that bell button and we'll see you next week [Music] you