Commentary

Keelan: Vermont non-profits competitive, proprietary, and secretive

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Shielding funding sources main objective for many

by Don Keelan

While the ranks of plumbers, electricians, house painters, school teachers, doctors, and first responders continue to decrease in Vermont, there has been a proliferation of another profession: the non-profit organization consultants. 

The April issue of Common Good Vermont, an information service organization for Vermont non-profits, included a Vermont Non-Profit Consultant Directory.

I was astonished by the size: 16 pages of listed firms, 69 firms in all. Not included were the State’s CPA and law firms, which are also involved with clients in the non-profit industry. 

Don Keelan

A review of expert services included the following: “Organizational Development. Workforce/HR, Diversity, Equity, Inclusion, Leadership Development.” 

Another listing noted “Fundraising & Development, Communication/Marketing.” One firm offered a combination of “Workforce/HR, Communications/Marketing, Advocacy, Organizational Development, Equity & Belonging Culture.”

When one realizes the size of Vermont’s non-profit industry, there might be a need for such a force of consulting firms.

In a recent interview with the Vermont Secretary of State’s Business Services Specialist, this writer was informed that there are 19,571 listed domestic non-profits in Vermont, of which 8,597 are active. 2,201 “foreign” nonprofits are in the State with 1,052 active.

Based on these findings, approximately 9,650 nonprofits actively operate in Vermont. The range in size, measured by annual income/employees, is also dramatic. The University of Vermont Health Network in 2023 had an annual revenue of over three billion dollars and 8,800 employees. Whereas Arlington’s Martha Canfield Memorial Free Library has an annual income of $140,000 and three employees. In between are the others that makeup one of Vermont’s largest industry sectors, if not the largest. This excludes municipal, school, and state government entities.

Many Vermont non-profits are competitive, proprietary, and secretive and receive multi-million grants that allow them to cover significant internal costs. 

A case in point was the State’s Department of Public Service’s grant award of $36 million to Efficiency Vermont (EVT) last summer, as reported in VTDigger on August 22, 2023. 

To be accurate and according to an official from VDPS, the grant was for $ 34 million and signed by Vermont Energy Investment Corp. on August 25, 2023, the parent company of EVT.

The grant subject is, “ PSD will subgrant funds to Vermont Energy Investment Corporation (VEIC), which operates Efficiency Vermont, to be used for electrical upgrades, heat pump water heater incentives as directed by Act 185 of 2022, and flood recovery efficiency incentives.”

Nevertheless, the grant allows EVT to offset its internal costs related to the grant: $670,000 for IT, $1,700,000 for Labor, and $4,127,632 for overhead. In its filing with the PUC dated April 15, 2024, EVT stated that several hundred installations have been made for electric panels, heat pumps, clothes washers, and dryers, etc.

The above is just an example of the billions of dollars the State must distribute to Vermont’s NGOs out of its $8.5 billion budget to carry out programs in health care, education, housing, mental and social programs, and the illegal drug addiction crisis. To name a few. 

What has evolved is the building of ‘silos’ by NGOs and the avoidance of collaboration within a given Vermont geographic area to deal with the problem the grant or State funds have been intended for. 

This writer could not obtain the above information from EVT. Instead, it was necessary to go to the DPS, which was willing to share the grant and progress information. One would think I asked for information from the NSA or the CIA.

Governor Phil Scott is correct when he says the State has provided more than enough funding. What is required is to secure better collaboration among the various NGOs working to address the same issues, whether they be housing, drug addiction, climate matters, education, or other State-funded issues. 

It might not be a bad idea if the legions of Vermont nonprofit consulting firms offered an additional service, a “collaboration support service.” 

My negative side says this won’t work; there is too much at stake for the non-profit. Among many, their first and foremost objective is to protect and safeguard their funding sources. The protection of its donors, whether individuals, corporations, foundations, or the granddaddy of them all, the State, must be safeguarded at all costs. Collaboration is not a priority.

The author is a U.S. Marine (retired), CPA, and columnist living in Arlington, VT.


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Categories: Commentary

5 replies »

  1. NGO’s are how color revolutions are funded and acted upon.

    There should be no surprise to this at all. VT is very small and money can go a lot further in this state than any other state in the Union. In other words it’s ground zero on a lot of fronts.

    It should also be noted that not only does a non-profit have a 30% gain monitarily over a for profit company due to lack of taxes, but they also often can use that money all day long to influence our legislation and often times doesn’t even need to be part of their charter. There has been more than one member of our legislature that has told me that they only have time to listen to an NGO because they take up most of their time. This is how the WOKE sausage is made in my opinion. Phil Scott has even said it before, these NGO’s have massive influence over our legislation and if you want to know where that influence is coming from you have to watch the money. The problem is as the author clearly shows above that it’s all being done to be hidden to begin with. 501C4’s take in the money and aren’t required to report from where, then they fund a 501c3 that is required to say that it got the money from a 501c4 and voila the money trail is hidden.

    Kicking these special interests out of VT should be priority number 1. They take our tax money shape our policy and give nothing back with great sounding names that have sinister consequences.

    So that everyone that reads this comment knows that larger 501c3/c4’s like the Tides foundation act as NGO creation machines spitting out NGO after NGO with training, web presense, accounting and all measures of help to get the NGO off the ground. Since they don’t have to pay taxes it’s much easier to start one and the money that it has is worth 30% more than face value.

    It should be no surprise that after 18 billion dollars was transferred to one of these non profits that they pop up everywhere. With that kind of money they can spin off 2 million dollar non-profits every day on interest alone.

    • The Truth is that many holders of 501c3/c4s tax exempt certificates are 24/7 money laundering services. Also, the duplication and explosion of registered LLC’s that hide and launder foreign money. The open borders, free flights to and fro, free phones, and loaded debit cards are all being supported by religious “charitable” agencies. When you throw money into the collection plate, the Church is using it against you. Consider the number of banks in a small town or city…what keeps them all in business? All secrets will be revealed. The cartel is active in all 50 states – according to Arizona Republican Committee Chair. They do hold tax exempt status and many are LLC registered. Ask Charity Clark or Sarah Copeland Hanzas how many LLCs are registered to the exact same address out of State with the same registering agent a prominent law firm out of Chittenden County or Montpelier?

  2. How about one of the biggest non-profits in Vermont – The Agency of Education “provides critical leadership, support, and oversight to a $ 2.7 billion education system with an operating budget of just over $ 55.7 million and 176 positions.”

    Do the math. $55.7 million for 176 people. Almost every Vermont non-profit IRS 990 return I’ve seen shows that most Vermont non-profits are run by executives earning six figure salaries and generous benefits. In fact, salaries and benefits are typically their largest expense.

    So… who are they serving? Really?

    • These non-profits are well protected from the public that they serve..

      I dealt with a dental clinic in Rutland Vermont that is a non-profit and works on a sliding scale..

      They made a terrible mess of my teeth so I investigated how to complain about them and the only thing you can do is sue them..

      If you decide to sue them it becomes a federal case because health and human services is part of the federal government that they are in bed with.

      They get a free lawyer to protect them and you have to hire a lawyer to represent you in federal court.

      So I asked about filing a complaint because they had violated state laws and I was told the same thing that if I want to file a complaint with the state of Vermont regarding these people violating state laws it still has to be handled through health and human services..

      And the people in that office are making some darn good money..

      The people with all the money have it made because they get free protection from the government just by starting a non-profit…

      Our government needs to rethink the value of these non-profits

    • Someone figured out many years ago that taking and keeping governmental control away from ‘the people’ rests with control of our judicial system. Power does not reside in the Executive or Legislative Branches of our government, or with the States, or with voters, or with the military. Control of the judicial branch of government provides two significant political weapons used in what we today characterize as ‘lawfare’.

      First, an unethical judiciary, from local DAs up to the DOJ, to the various appellate courts (and especially the corrupt judges presiding over them), can and do, ‘legislate from the bench’ with impunity as they see fit. Not only are many of them not elected, they make up the law as they go.

      But second, and most importantly, folks like George Soros figured out that control of judicial officials and appointees also creates an insurmountable financial weapon. Individuals must spend their own money to defend themselves against the government. However, those in control of the public judiciary use taxpayer dollars to fund their charades, ill-advised as they may be.