Nonprofit = Tax Exempt?


Once again Michael Grunwald has hit the nail on the head with his article “One Nation, Tax Exempt” in the June 10, 2013, issue of TIME.

The root of the current controversy involving overdone IRS attention to Tea Party groups is that the IRS shouldn’t be in the business of determining what constitutes a “social welfare” organization, and quite possibly shouldn’t be in the business of granting tax-exempt status at all, to anyone or any organization.

The IRS should not have to decide whether an organization is tax-exempt because it engages in activities that may be characterized  (or mischaracterized, as in organizations that are blatantly political) as a “social welfare” organization.

If an organization doesn’t make money, why does it need to be tax-exempt?

Grunwald points out that “In 2012, the U.S. had 1,616,053 tax-exempt organizations, 10 times the number of fast food restaurants.”  He makes a great case for simply taxing organizations and real human beings and using the money to pay for what the private sector can’t or won’t provide.

Support what you want to support; America is still a free country.  But don’t expect to get a tax break for it.

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One thought on “Nonprofit = Tax Exempt?

  1. Wouldn’t it be nice if tax exempt status was given only to organizations who had no specific political agenda–just doing good for the common whole of our nation. A non profit org. With NO dollars to support a political goal. That Is what happens when sanity comes to our land and our elected reps listen to the American people rather than their campaign contributors and their lobbyists. This is what happens when we get Supreme Court rulings that do not lean so heavily to big money interests. This is what happens when I dream about the perfect world.

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