According to NY  Times, the number of charities  that are consider qualified non-profit groups in the eyes of the IRS  has grown by over 60% in the last ten years. As an American taxpayer  you can make deductible donations to over a million different charities.
 
Experts say nonprofits are skillfully  exploiting the tax code’s broad and elastic definition of what constitutes  such a charity, making it difficult for the Internal Revenue Service,  which must bless them, to say no. The agency approved 99 percent of  the applications for public charity status last year, according to a  new study by students at Stanford University — or more than one every  10 to 15 minutes.
Take the Woohoo Sistahs, a social club  that won approval last year. Its 50 or so members meet regularly over  drinks and dinner in the Hampton Roads area of Virginia and raise money  for cancer research and other causes through walkathons and sales held  in retailers’ parking lots.
What the Sistahs do is not so different  from what the Shriners have done for decades to raise money for their  hospitals — except that the Sistahs can offer their donors a tax break  that the Shriners cannot because decades ago they registered as a different  type of charity with the I.R.S. (Direct donation to Shriners hospitals  are deductible.)
The $300 billion donated to charities  last year cost the federal government more than $50 billion in lost  tax revenue.
“Especially during these tough economic  times, it’s troubling to hear we are increasing the number of these  organizations at such a rapid pace,” said Representative Xavier Becerra,  a California Democrat who is one of the few members of Congress to pay  attention to the nonprofit sector.