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If, per the IRS sampling, 20% of these NGOs have compliance (aka audit) issues, this would mean up to $120B of spending in California could be subject to waste, fraud and abuse. This is 25% of the California budget for FY25-26. Per Grok: - The post draws from ProPublica's Nonprofit Explorer, which aggregates IRS data on 213,720 tax-exempt organizations in California generating $593.4 billion in total revenue, with similar figures for New York ($445.8B), Minnesota ($124.2B), New Jersey ($113B), and Washington ($139.5B). - These revenues, primarily from donations, grants, and fees, support sectors like health (40% of U.S. nonprofits) and education, equating to 12-15% of each state's GDP based on 2025 estimates. - The implication of fraud echoes concerns in reports like the GAO's 2023 nonprofit audit findings, which identified compliance issues in 20% of sampled filings, though most funds align with charitable missions per IRS oversight.