An Introduction to the Governance and Taxation of Not-For-Profit Organizations

Authors

Patrick Bolton, Columbia Business SchoolFollow
Hamid Mehran, Federal Reserve Bank of New York

Document Type

Article

Publication Date

2006

DOI

https://doi.org/10.1016/j.jacceco.2006.06.001

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

Disciplines

Business Organizations Law | Law

Recommended Citation

Patrick Bolton & Hamid Mehran, An Introduction to the Governance and Taxation of Not-For-Profit Organizations, 41 J. Acct. & Econ. 593 (2006).
Available at: https://scholarship.law.columbia.edu/contract_economic_organization/12