What’s legal, what’s illegal, and what’s unethical?
It’s certainly legal for your nonprofit to rent from you, and pay for other services you provide. But you have to provide those things AT MARKET RATE – you can’t overcharge. You CAN undercharge, but the balance is reported as a donation.
Take your emotion out of this, for a moment, and pretend that we aren’t talking about the Trump’s. Where non-profits are concerned, a ripple effect from this BEHAVIOR could be chilling. Imagine if it were to become unethical – and then illegal – to rent your property, or provide paid services or goods, to a non-profit in which you are the principle. It would become hard to start a new, small, non-profit because you couldn’t use your kitchen table.
Non-profits are audited less, and less. After this, that trend may begin to change.
And as for political entities, for gods’ sake, don’t shift donations into your own pocket.
What are your thoughts on the actions of the Inauguration Committee and the Trump Organization? Or, have you seen this happen elsewhere – inside, or outside of politics? If so, include a link.
Trump’s Inauguration Paid Trump’s Company — With Ivanka in the Middle — ProPublica
propublica.org
As the inaugural committee planned the landmark celebration, internal concerns were raised about whether Trump’s Washington hotel was overcharging for event space. The spending could be a violation of the law.