Explosion in Non-Profit Organizations Costing U.S. Treasury Billions

Check out this article in the New York Times concerning the explosion of non-profit public charities organized under section 501(c)(3) of the Internal Revenue Code. A new study by researchers at Stanford, entitled "Anything Goes: Approval of Nonprofit Status by the IRS," shows that about 99.5% of all applications for charitable status are approved by the IRS. And, after a group is formed, there's little oversight of its supposedly charitable work. A new group is approved by the IRS about every 10 to 15 minutes. The number of 501(c)(3)s has increased by 60% in the last decade. 501(c)(3)s pay no taxes.