I don’t think there’s necessarily an issue with giving fines. As I see it the issue comes from the profit motive, which is a lot more complicated to solve than it might first appear. You could do something like give the fine revenue away in a lottery to charities, but even then you’d still have some issues.
The other side of that argument is that the payment of the fine to the government is supposed to play a restorative role in whatever crime you have committed against the community. But I don’t think there’s a way to operate a system like that that does lead to this type of corruption.
This is ill considered an entity exists to enrich itself and its management fines allowed by law and enacted by policy are trivially turned by majority vote to self enrichment.
Your idea fine in theory will be enacted by no substantial proportion of such institutions while banning such locally at the municipality, county, or state might in theory be at least possible to implement.
We can easily force these orgs to stop collecting fines we cannot stop government using fines to control behavior. Your ideas therefore are much more applicable to government than to this situation even if the same challenges apply.
