I found something big. Lots of pictures to make it easier to read.
So I work somewhat in the non-profit sector so I started looking at WWF and Save The Children’s tax forms (aka 990s). Check this out.
I first started to look into WWF. I found some peculiar things on their form. First is the Investments section:
Investments are listed as ‘Partnerships’…. that is a lot of money for partnerships.
Then I looked at Other Liabilities:
Where have I seen swaps before?
Explanation from investopedia.com
Wait, this non-profit charity can trade? None-the-less OTC? Can all non-profits do this? Yes, yes they can.
As I continued reading I came across this:
Financial Accounting Standards Board (FASB). Who dat?
We’ll get to who FASB is later.
Someone or some entity donated 265 shares of a company? This could be from someone who died and donated the shares, but still strange.
Now for Save the Children.
Lets look at Investments:
Hedge Funds? Mutual Funds? Private Equity? To the tune of $127M dollars?
Now I know $127M doesn’t seem like a lot in the grand scheme of the market (like 3 shares of GME), but there are 10s of thousands of non-profits investing into the markets. Pretty large sums of money.
Lets get back to FASB. Who are they?
The FASB sets the accounting standards for public companies and other organizations. It is recognized by the SEC. They created the Generally Accepted Accounting Principles. What’s that?
So lets get this straight. One of the main assumptions of the standard is that if the company says the standards are being followed, no further disclosure is required?! Sounds ripe for abuse… oh wait it is. Massive accounting irregularities from ENRON and Worldcom. I’m familiar with the Enron scandal, but what is Worldcom?
Scheme to inflate company assets….
Worldcom’s Board of Directors authorized loans and loan guarantees to the CEO so that he wouldn’t have to sell his shares to meet margin calls or the share price would have plummeted. It was estimated that the company’s value was inflated by $11B. HO-LY FUK. Are these non-profits and some companies, at the guidance of bad actors (ie BCG), loaning money out to hedge funds/board members to avoid margin calls?! Is that why when things are going south, they are magically saved? FUCKIN’ A – ARE THESE NON-PROFITS THE ULTIMATE BAG HOLDERS? Is the whole market inflated and a giant ponzi scheme?
Somebody, please think of the children (and animals).