Wednesday, November 14, 2018

So, You Think Nonprofits Should be Taxed?

    This article discusses counter-arguments for people who think nonprofits should be taxed. The first counter-argument is to argue that nonprofits should be taxed like their for-profit counterparts. For-profit businesses are taxed on their net profits, or the amount they make after expenses are deducted. Since most nonprofits spend their profits on the programs they run, there is no profit to be taxed on. According to the Urban Institute, “in 2012, the entire nonprofit sector made about $2.26 trillion in revenues and spent $2.10 trillion in expenses.” The second counter-argument is that nonprofit already pay certain taxes. Nonprofits pay pay-roll taxes and sales tax on supplies needed to run their organizations. To learn about why nonprofits should not be taxed, click here: http://nonprofitaf.com/2017/06/so-you-think-nonprofits-should-be-taxed/

 

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https://lawprofessors.typepad.com/nonprofit/2018/11/so-you-think-nonprofits-should-be-taxed.html

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Comments

Some non-profits should be taxed others should not. The local Meals on Wheels group should not be taxed.

A hospital, and there is one near me, that has $3 Billion of Revenue and a "surplus" of $300 Million is a big business that should be taxed.

Universities with $35 Billion Endowments that charge students $70,000/yr in tuition and fees are not charitable institutions and should pay taxes.

Hospitals that bill uninsured people at the highest rate are acting as businesses.

Here is a test. Hospitals are non profit if they do bill patients. They can ask for contributions, but they cannot send out bills. Universities that charge tuitions and fees are businesses. Berea College in Kentucky is a non-profit. Harvard is a hedge fund that uses a college as a tax shelter.

Posted by: Walter Sobchak | Nov 28, 2018 9:37:18 PM

No edit function. 4th graf should say: Hospitals are non profit if they do NOT bill patients.

Posted by: Walter Sobchak | Nov 29, 2018 1:24:26 PM

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