Competition Between Tax-Exempt Organizations and Taxable Businesses

T-GGD-88-43: Published: Jun 28, 1988. Publicly Released: Jun 28, 1988.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO discussed the issue of competition between tax-exempt organizations and taxable businesses. GAO found that: (1) competition was a major concern to both communities because they were increasingly providing similar services; (2) complete data did not exist to quantify the exact nature, extent, and impact of the competition; (3) tax-exempt groups have grown significantly in number and types of activities; (4) tax-exempt groups have become more reliant on income-producing activities and less reliant on charitable and government sources of revenue to fund their activities; and (5) these income-producing activities may result in competition with taxable businesses, but a lack of data made it difficult to measure their impact on the business sector. GAO also found that: (1) representatives of tax-exempt groups believed that income-producing activities furthered their groups' exempt purposes, but business representatives stated that such activities exceeded tax-exempt organizations' traditional roles; (2) business representatives believed that tax-exempt groups had a competitive advantage due to their tax-exempt status and other benefits; and (3) a substantial number of businesses reported experiencing competition from one or more tax-exempt groups, but the type of competitor and the extent and effects of competition varied by industry.

Jan 14, 2021

Nov 18, 2020

Nov 9, 2020

Oct 19, 2020

Sep 23, 2020

Aug 31, 2020

Jun 29, 2020

Jun 16, 2020

May 1, 2020

Apr 30, 2020

  • tax icon, source: Eyewire

    Priority Open Recommendations:

    Internal Revenue Service
    GAO-20-548PR: Published: Apr 23, 2020. Publicly Released: Apr 30, 2020.

Looking for more? Browse all our products here