> I set up my non-profit school-- and then I hire a profitable management company to run the school for me. The examples of this dodge are nearly endless, but let's consider a classic. There's the White Hat management company that was being dragged into court way back in 2011. This particular type of arrangement was known as a "sweeps contract,' in which the school turns over close to all of its public tax dollars and the company operates the school with that money-- and keeps whatever they don't spend. The White Hat story is particularly impressive, because the court decided that White Hat got to keep all of the materials and resources that it bought with the public tax dollars.
> Or consider North Carolina businessman Baker Mitchell, who set up some non-profit charter schools and promptly had them buy and lease everything-- from desks to computers to teacher training to the buildings and the land-- from companies belonging to Baker Mitchell. ...
> I set up my non-profit school-- and then I hire a profitable management company to run the school for me. The examples of this dodge are nearly endless, but let's consider a classic. There's the White Hat management company that was being dragged into court way back in 2011. This particular type of arrangement was known as a "sweeps contract,' in which the school turns over close to all of its public tax dollars and the company operates the school with that money-- and keeps whatever they don't spend. The White Hat story is particularly impressive, because the court decided that White Hat got to keep all of the materials and resources that it bought with the public tax dollars.
> Or consider North Carolina businessman Baker Mitchell, who set up some non-profit charter schools and promptly had them buy and lease everything-- from desks to computers to teacher training to the buildings and the land-- from companies belonging to Baker Mitchell. ...