Elon Musk sharply criticized government-funded nongovernmental organizations during a recent exchange with Joe Rogan, describing the system as a loophole that allows activities he says would otherwise be illegal if carried out directly by the government.

The discussion focused on how nonprofits receive public funds and how those funds are then used, with Musk arguing that the structure enables abuse on a massive scale.

“There was a case where we saw one person was getting $1.9 billion sent to their NGO, which basically got formed about a year ago and had no prior, really, no prior activity,” Musk said.

He described the broader nonprofit system as deeply flawed, adding, “these the whole NGO thing is a is a nightmare, and it's it's a misnomer, because if you have a government funded, non governmental organization, you're you're simply a government funded organization. It's an oxymoron, right?”

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Musk argued that the distinction between government agencies and nonprofits collapses once taxpayer funding is involved, saying the arrangement creates a legal workaround that shields questionable activity.

“It's a loophole. Yes, it basically, the government funded NGOs are a way to do things that would be illegal if there were the government, but are somehow made legal if it's sent to a so called nonprofit,” Musk said.

He went on to claim that these organizations often become vehicles for personal enrichment rather than public service.

“These nonprofits are then used to people cash out these nonprofits. They become very wealthy through nonprofits. They pay themselves enormous sums through these nonprofits,” Musk said.

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Rogan reacted with disbelief at the scope and longevity of the system.

“It's so insane that that's been going on for so long,” Rogan said.

Musk responded by characterizing the practice in stark terms.

“It's a gigantic scam, like one of the biggest, maybe the biggest scam ever,” he said.

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Rogan then pressed Musk on the scale of the nonprofit sector, asking, “And how many NGOs?”

Musk estimated the numbers were vast, saying, “I think there's a total number of NGOs, probably millions, but in terms of large NGOs, 10s of 1000s.”

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