Friday, February 1, 2008
Darryll K. Jones has published Third Party Profit-Taking In Tax Exemption Jurisprudence, 2007 B.Y.U. Law Rev. 977 (2007). The article argues that the present antipathy to non-insiders getting rich from their market based transaction with exempt organizations -- e.g., physicians who enter into joint ventures with nonprofit hospitals or home builders who fund downpayment assistance programs -- unnecessarily prevents the accomplishement of charitable needs that are also left unmet by government or the for-profit market. The article concludes that it is ridiculous to prohibit necessary, market-based transactions under the guise of the private benefit doctrine just because the transaction results in conspicuous wealth to a vendor, without whose participation the charitable goal would not be met. Ok, maybe the picture linked to my name is not really me (but did I say it was me?).