Nonprofits are widely misunderstood to be a tax-free sector
of the economy—a misunderstanding predicated on
nonprofits’ tax-exempt status. In fact, nonprofits operate
on “both sides of the ledger,” as this article explains, paying
out billions in taxes, in tax withholdings for others, and in
fees. So why do proposals to tax the sector keep popping up,
and how should the sector respond?
by Jon Pratt