In the midst of the allegations of gross corruption of non-profits in Minnesota and other northeastern states, one would think that other states might take a look at their non-profits to make sure they are in compliance with the law.
Not so.
In fact, non-profits in Maryland continue to get money despite the fact that many of them are out of compliance with the law regarding reporting to the state.
Basically, a non-profit organization is one that operates for purposes other than generating profit, and whose income cannot be distributed to owners, members, directors, or officers. Instead, any surplus must be reinvested into advancing the organization’s mission. Most non-profits have a public mission to pursue charitable, educational, religious, scientific, or other socially beneficial goals. Their activities must align with the mission stated in their organizing documents.
Non-profits may, in some cases, pay employees a salary as long as it is reported. However, mission replaces profit as the central organizing principle of the non-profit. There are different types of non-profits. Some are structured so that donations to their non-profit will generate a tax deduction for donors. Others, such as 501c4 corporations, do not generate tax deductions for donors. The law may also restrict the activities of some non-profit organizations.
Any revenue beyond expenses must be used to further the organization’s purpose. This is a defining legal feature and prevents private individuals from profiting from the organization’s operations.
Non-profits are “tax exempt” meaning they don’t have to pay federal or state income taxes on any monies they generate for their mission. However, in order to maintain their status, they have to meet certain Federal and State reporting requirements. That’s called “being in compliance.”
Sometimes public entities such as the state or municipalities will give money to non-profit organizations if those organizations help the state or city provide services that cannot be provided via departments in the state or city. But, no non-profit may receive any public funds without being compliant with state and federal reporting requirements according to state and federal law.
These requirements differ depending on the non-profit’s structural organization. If a nonprofit asks for donations in Maryland, they must register with the Maryland Secretary of State – Charitable Organizations Division.
In Maryland, hundreds of millions of dollars are given to non-profits. It’s hard to determine the exact amount, as these “donations” of taxpayer funds are spread across many different state programs such as the nonprofit Sustainability Fund, the Maryland Department of Commerce grants program, Maryland State Arts Council grants, Community development and housing grants, health and human services grants, and education and youth program grants.
It’s also interesting to note that many Maryland state legislators are associated and even employed by non-profit organizations which receive these funds. From FOX 45:
Almost half of the Government, Labor and Elections Committee appears to have strong ties to Maryland’s nonprofit community, including members employed by nonprofits or active in nonprofit organizations. The committee (Government, Labot, and Elections) chairwoman is employed by a council that represents nonprofit labor unions. Del. Kris Fair is identified as the executive director of a Frederick nonprofit. Source: Millions in state dollars at stake as nonprofit funding crackdown bill stalls
The conflict of interest is real. That’s why, when a bill was proposed to prohibit state funds from going to non-compliant non-profits, HB 122, it should have sailed through committee and onto the floor for a vote.
That was not the case. In fact, it stalled in the GOVERNMENT, LABOR AND ELECTIONS COMMITTEE. Yes, the same committee mentioned above. Delegate Ryan Narwocki had this to say about the lack of action. Again from FOX 45:
State Del. Ryan Nawrocki said the connections extend beyond one committee. “It is more profound than just that committee if you look at the entire legislature I think you’ll get the same result,” he said. “Probably half is employed by a nonprofit organization so it’s a fox guarding the henhouse there. I think there’s a legitimate question to ask if these folks should be voting on nonprofits if they have something to do with nonprofits.” SOURCE: Millions in state dollars at stake as nonprofit funding crackdown bill stalls
By law, legislators are NOT supposed to vote on issues that directly impact them. Didn’t seem like they applied that law in this situation. As of March 4th, the bill had not received a vote to move it out of committee.
Not surprising since Maryland lawmakers never seem to want to regulate how money is spent in the state. Recently, questions have risen regarding how the State Highway Administration spent approximately $360 million in unauthorized expenditures between June 2024 and August 2025. It has also been revealed that public school systems in the state received $318 million of student funding for students who didn’t attend schools. Meanwhile the state has a deficit of $1.4 billion.
In particular, Baltimore City has also come under fire for spending around $1 million dollars for staff entertainment, parties, etc. as well as over $165,000 for the Mayor’s SUV. Mayor Brandon Scott blames the controversy on “racism.” Not very original. Watch how he aggressively addresses a question from Reporter Mikenzie Frost regarding the purchase of the SUV:
Baltimore mayor blames racism when pressed about taxpayer funded luxury vehicle | Fox News Video
We cannot forget the problems the Mayor’s wife had with her non-profit:
Baltimore City Mayor Brandon Scott And Wife: Questionable Financial Practices? – The Easton Gazette
Apparently, some non-profits in Maryland either forgot or just ignored the reporting requirement. Actually, it’s estimated that 9,000 of them were non-compliant. One would think, as one person commented on a recent story about this problem, that Governor Moore would KNOW how to address the non-compliance problem, since he came from a non-profit organization, the ROBIN HOOD FOUNDATION, a non-profit created to address issues of poverty. The EASTON GAZETTE referenced this in an article regarding Moore’s background and net worth:
From the article:
“He (Moore) ran a big non-profit from 2017-2021, the Robin Hood Foundation, where he made $690,000 a year, possibly closer to a million when perks and benefits are included.”
Information on the executive compensation of the Robin Hood Foundation:
Executive Compensation at the Robin Hood Foundation (2021) | Paddock Post
But, as per usual, Governor Moore seems to be more interested in running for higher office.
This kind of negligence from non-profits exists in many different cases, from large non-profits to even the small, local ones.
It’s just one more story that shows how Maryland’s lawmakers are ignoring the needs of the taxpayers while greasing the palms of those who think they are above the law.
Other links:
Non-compliant nonprofits receive funding as state leaders refuse to get tough
Maryland lawmakers say tougher oversight bills for nonprofits rarely pass
The post Maryland Non-Profits Earn Millions Despite Being Non-Compliant appeared first on The Easton Gazette.
