Obviously there are cheaters in the system. But I sometimes wonder if people realize how many services they get from nonprofits right now.
Almost 88 percent of overall nonprofit revenues in 2005, the most recent year for which figures are available, came from fees for services, sales and sources other than charitable contributions, according to the National Center for Charitable Statistics. Nonprofit health care providers, day care centers and retirement homes, among others, are often difficult to distinguish from their tax-paying competitors.
The fact that you need nonprofits is a sign you're dealing with a public good...a necessity (push come to shove you can leave your grandmother in the woods to be devoured by bears, so I'd be forced to agree if you argue these services aren't necessary).
And the fact that nonprofits are commerce-driven is a response to the current political and economic environment.
And, concerned about the way some churches are spending money, the Senate Finance Committee has asked for detailed financial information from six evangelical ministries asking them to justify their tax exemptions.
So when you see signs of abuse, fine, pursue the case. But when you question cases that show no sign of abuse and provide necessary services, I think you need to rethink your community's relationship with the nonprofit sector.
Tax Exemptions of Charities Face New Challenges
By STEPHANIE STROM
RED WING, Minn. — Authorities from the local tax assessor to members of Congress are increasingly challenging the tax-exempt status of nonprofit institutions — ranging from small group homes to wealthy universities — questioning whether they deserve special treatment.
One issue is the growing confusion over what constitutes a charity at a time when nonprofit groups look more like businesses, charging fees and selling products and services to raise money, and state and local governments are under financial pressure because of lower tax revenues.