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

Bolton, Patrick; Mehran, Hamid

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-profits' corporate income tax exemptions. Based on a simple general equilibrium analysis, we argue that there is little justification for such exemptions.

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Also Published In

Title
Journal of Accounting and Economics
DOI
https://doi.org/10.1016/j.jacceco.2006.06.001

More About This Work

Academic Units
Business
Published Here
December 23, 2010