Concerns over non-profit management and regulation in North Carolina are being raised after a supposed “sex club” for men registered as a non-profit. The North Carolina Secretary of State has jumped into the fray.
Secretary Elaine Marshall says the state has no power to regulate non-profits, unless they receive state grants or other monies, and that non-profits like schools and churches are exempt from filing reports with the State Department.
Marshall told local news station WRAL that the group “did what is required by law — organizers filled out the paperwork and sent it in.”
“We at the Secretary of State’s Office register, we don’t regulate,” Marshall told the news station. “If somebody’s intent is to scam, the only thing this does is, maybe, give them a nice name they can select.”
The Secretary said “that eventually civil and criminal law would have caught up with the club anyway,” according to WRAL.
The group under scrutiny, the “Marketing and Networking Fellowship Group,” managed to “fly under the radar” long enough to almost open shop this October.