by Steven Malanga
Manhattan Institute
February 11, 2014
City Journal
Despite their tawdry history, nonprofit scandals keep happening in New York City. Loose New York State laws, which Albany refuses to change, enable misuse and embezzlement of government funds funneled into fraudulent nonprofit ventures. The legislature could curtail the wrongdoing if it ended the earmarking process. Much of the earmark money goes to dubious, untested, unaudited programs. The state legislature should also ban nonprofits from getting more than 25 percent of their revenues from Albany if an immediate family member of a state legislator is part of the group’s management. Over the years, simply imprisoning those caught with their hands in the till hasn’t stemmed the corruption. Eliminating the conflicts of interest and curtailing the money at its source seem the only ways to change New York’s culture of nonprofit corruption.

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