Today, in the U.S., there are more than 1.2 million nonprofit organizations. In dollar terms alone, the nonprofit sector annually generates more than $670 billion, or nine percent of the U.S. Gross National Product. More than twelve million Americans are employed by nonprofits. Because the sector is so large and diverse in mission, scope and ability, but also has such an impact on the life of the nation, there are always going to be concerns about its performance, governance, influence, intentions and fiscal responsibility. That’s normal. Even our founding fathers were wary of the phenomenal growth of the citizens associations that were emerging in the new republic. George Washington was among those who feared that nongovernmental organizations would become too powerful, stating, in his 1796 farewell address to Congress that “cunning, ambitious and unprincipled men” could use these associations to “subvert the power of the people.”

Happily, though, George Washington’s fears have not proved out. With a few notable exceptions, nonprofit organizations, including foundations, have gone about their work with integrity, honesty, balanced judgment and an overriding concern for doing the right thing and for being scrupulously ethical in all their dealings with the public, the media, the government and with each other.

via The 2002-2003 annual report of the Carnegie Corporation, p. 31 (PDF). Emphasis is mine. I’m impressed they acknowledge Washington’s observation.  Hide in plain sight and all that. I’m guessing the notable exceptions are the Cato Institute and Ron Paul’s campaign.