Are These Organizations Really Nonprofits? (news)

Using the Whole Whale - A Nonprofit Podcast

Are These Organizations Still Nonprofits? A Deep Dive into Nonprofit Status and the Blurring Lines Overview

This week on the Nonprofit Newsfeed, George Weiner, Chief Whaler of Whole Whale, and Nick Azulay, Senior Manager of Digital Strategy at Whole Whale, delve into the complex and evolving landscape of nonprofit status. They question whether certain large organizations still meet the true spirit of what it means to be a nonprofit.

Key Topics and Highlights

1. NCAA's Historic Settlement:

   • The NCAA, a nonprofit with nearly $1 billion in revenue, recently settled to pay college athletes $2.7 billion. This raises questions about whether the organization still aligns with its original nonprofit mission of fostering amateur sports.

2. PGA Tour and Saudi Investment:

   • The PGA Tour, another nonprofit, announced a merger with the Saudi Public Investment Fund's LiveGolf. This billion-dollar deal casts doubt on whether taxpayer dollars should support such ventures.

3. OpenAI's Nonprofit Status:

   • OpenAI, which started as a nonprofit, now controls a highly profitable LLC valued at $80 billion. This shift has led to legal scrutiny and questions about whether it still adheres to its nonprofit mission.

4. The Linux Foundation:

   • With $177 million in revenue and high executive salaries, the Linux Foundation faces scrutiny about its contribution to the public good and whether it still qualifies as a nonprofit.

Critical Insights and Quotes

• George Weiner: "When you cross that line toward profiting off the community you're trying to protect, it's time to review that."
• Nick Azoulay: "Should your tax dollars be subsidizing the Saudi investment into American golf influence? That's a hard pill to swallow."

Calls to Action

• For Nonprofits: Reflect on whether your organization still aligns with its original mission and the broader public good.
• For Donors and Volunteers: Scrutinize the nonprofits you support to ensure they adhere to their stated missions and use funds responsibly.

Closing Thought

The conversation highlights the need for a national discussion about what truly constitutes a nonprofit. As organizations grow and evolve, it's crucial to revisit their missions and ensure they continue to serve the public good.

Additional Stories

• Universal Analytics Data Deletion: A reminder for organizations to download their data from Universal Analytics before it is permanently deleted.
• Robin Hood AI Poverty Challenge: An exciting opportunity offering up to $1 million for innovative projects addressing poverty in New York City.
• National Foundation for Transplant Closure: The closure of this organization leaves many organ transplant patients without critical funds.
• Feel-Good Story: The Growhaus nonprofit in Denver is planting vegetable gardens in food deserts, providing fresh produce and empowering families.