Denial is a defense mechanism where an individual refuses to acknowledge or accept a reality, often because it's too painful or difficult to confront
Case in point: local left's inability to acknowledge the monumental grift going on with regional housing nonprofits. Ana Kasparian on Substack and Elgar's Nonprofit Management Encyclopedia explore.
Ana Kasparian:
Let's Talk About the Real Grifters.
Progressively-branded nonprofits have repeatedly misused public funds. Why won't the left call them out?
Voters in Los Angeles County will decide in November whether to increase their taxes again so nonprofits tasked with sheltering the homeless can keep the gravy train rolling.
Of course, that’s not how Measure A is being pitched to the public. Instead, the private nonprofits pushing the ballot initiative are alleging that the plan is to raise another $1 billion through a regressive sales tax increase to build homeless shelters, housing and other services.
I’ll be voting no.
I don’t believe the money will be used appropriately, and with good reason. A recent state audit found that in just five years, $24 billion in taxpayer money was squandered on programs that failed to adequately address the homeless crisis.
Auditors analyzed the effectiveness of five initiatives that had received a combined $13.7 billion in government grants between 2018-2023. Only two of them were likely cost effective.
Read the whole thing here.
Elgar's Nonprofit Management Encyclopedia:
Embezzlement and fraud within nonprofit organizations has reached epidemic proportions.
According to the Association of Certified Fraud Examiner’s (2020) Global Study which contains an analysis of 2,504 cases of occupational fraud that were investigated between January 2018 and September 2019, 70 percent of frauds occurred in nonprofit organizations.
The study points out that nonprofit organizations only reported 9 percent of fraud cases and suffered the smallest median loss of $75,000 and an average loss of $639,000; however, as the study points out, many nonprofits have limited financial resources to begin with, so a loss of these amounts can be particularly devastating to these entities.
There are a multitude of factors that make nonprofit organizations susceptible to fraud including a lack of internal oversight and controls, inadequate training, high turnover with low employee investment, and poor technological resources.
Nonprofit organizations often have limited operating budgets with more money allocated to core programming than to internal audit and compliance departments.
Read the whole thing here.
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