Post Syndicated from Bradley M. Kuhn original http://ebb.org/bkuhn/blog/2014/09/26/non-profit-status.html

Historically, I used to write a blog post for each episode of the
audcast, Free as in Freedom that
Karen Sandler and I released. However, since I currently do my work on
FaiF exclusively as a
volunteer, I often found it difficult to budget time for a blog post about
each show.

However, enough happened in between when Karen and I
recorded FaiF 0x4E and
when it was released earlier this week that I thought I’d comment on those
events.

First, with regard to the direct content of the show, I’ve added
some detail in the 0x4E
show notes about additional research I did about various other
non-software-related non-profit organizations that I mention in the
show.

The primary thrust of Karen’s and my discussion on the show, though,
regarded how the IRS is (somewhat strangely) the regulatory body for
various types of organizational statuses, and that our legislation lumps
many disparate activities together under the term “non-profit
organizations” in the USA.
The types of
these available, outlined
in 26
USC§501(c), vary greatly in what they do, and in what the IRS
intends for them to do.

Interestingly, a few events occurred in mainstream popular culture since
FaiF 0x4E’s recording that relate to this subject. First, on John
Oliver’s Last
Week Tonight Episode 18 on 2014-09-21 (skip to 08:30 in the video to
see the part I’m commenting on), John actually pulled out a stack of
interlocking Form 990s from various related non-profit organizations and
walked through some details of misrepresentation to the public regarding
the organization’s grant-making activities. As an avid reader of Form
990s, I was absolutely elated to see a popular comic pundit actually assign
his staff the task of reviewing Form 990s to follow the
money. (Although I wish he hadn’t wasted the paper to print them out
merely to make a sight gag.)

Meanwhile, the failure of just about everyone to engage in such research
remains my constant frustration. I’m often amazed that people judge
non-profit organizations merely based on
a (Stephen-Colbert-style)
gut reaction
of truthiness rather
than researching the budgetary actions of such organizations. Given that
tendency, the mandatory IRS public disclosures for all these various
non-profits end up almost completely hidden in plain sight.

Granted, you sometimes have to make as many as three
clicks, and type the name of the
organization twice
on Foundation
Center’s Form 990 finder to find these documents. That’s why I started
to maintain the

FLOSS Foundation gitorious repository of Form 990s of all the orgs related
to Open Source and Free Software — hoping that a git
cloneable solution would be more appealing to geeks. Yet, it’s rare
that anyone besides those of us who maintain the repository read these.
The only notable exception
is Brian
Proffitt’s interesting article back in March 2012, which made use of FLOSS
Foundation Form 990 data. But, AFAIK, that’s the only time the media
has looked at any FLOSS Foundations’ Form 990s.

The final recent story related to non-profits
was linked
to by Conservancy Board of Directors member, Mike Linksvayer on
identi.ca. In
the article
from Slate Mike references there, Jordan Weissmann
points out that the
NFL is a 501(c)(6).
Weissmann further notes that permission for football to be classified
under 501(c)(6) rules seems like pork barrel politics in the first
place.

These disparate events — the Tea Party attacks against IRS 501(c)(4)
denials, John Oliver’s discussion of the Miss America Organization,
Weissmann’s specific angle in reporting the NFL scandals, and (more
parochially) Yorba’s 501(c)(3) and OpenStack Foundation’s 501(c)(6)
application denials — are brief moments of attention on non-profit
structures in the USA. In such moments, we’re invited to dig deeper and
understand what is really going on, using public information that’s readily
accessible. So, why do so many people use truthiness rather than data to
judge the performance and behavior of non-profit organizations? Why do so
many funders, grant-makers and donors admit to never even reading the Form
990 of the organizations whom they support and with whom they collaborate?
I ask, of course, rhetorically, but I’d be delighted if there is any answer
beyond: “because they’re lazy”.