An introduction to the governance and taxation of not-for-profit organizations

Articles:

Title:: An introduction to the governance and taxation of not-for-profit organizations
Author(s):: Bolton, Patrick
Mehran, Hamid
Date:: 2006
Type:: Articles
Department:: Business
Volume:: 41
Permanent URL:: http://hdl.handle.net/10022/AC:P:9755
Book/Journal Title:: Journal of Accounting and Economics
Abstract:: This paper provides a brief overview of the current state of the not-for-profit sector and discusses specific governance issues in not-for-profit organizations. We offer an in-depth analysis of the issues that arise when not-for-profit organizations compete against for-profit firms in the same markets. We argue that while competition by for-profit firms can discipline not-for-profit firms and mitigate their governance problems, the effects of this competition are distorted by the not-for-profitsâ€™ corporate income tax exemptions. Based on a simple general equilibrium analysis, we argue that there is little justification for such exemptions.
Subject(s):: Public policy
Finance
DOI:: http://dx.doi.org/10.1016/j.jacceco.2006.06.001