The problem is that the biggest such “non profits” have been captured by very powerful folks. It’s roughly parallel to why Corzine is still a free man. Laws don’t get applied.
Just keep in mind-—there’s more ways than one to skin a cat. If the crooks seem like they’re getting off scot-free under some laws-—there are other laws that apply.
After all-—they nailed mobster Al Capone on tax evasion-—not on all of the other crimes he committed.