This is false statement that Non-profit organizations are not affected by the behavior of their funding organizations as long as they continue to receive the money they need to continue their operations.
A nonprofit organization (NPO), often referred to as a non-business organization, not-for-profit organization, or nonprofit institutions, is a legal body set up and run for the benefit of the general public, the community, or other non-owners. This is in contrast to an entity that works as a company and seeks to make a profit.
The non-distribution constraint applies to organizations, which implies that any cash inflows must be used to further their purpose instead of being transferred to those other parties. Many organizations, including some political ones, educational institutions, professional associations, religious institutions, clubs, and consumer cooperative, are nonprofit. Government permission is needed for charitable organizations to be tax-exempt, however some may also be qualified for tax-deductible donations. However, a group can organize as a nonprofit if it does not obtain tax-exempt status.
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