Competition Between Tax-Exempt Organizations and Taxable Businesses

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

Additional Materials:


Office of Public Affairs
(202) 512-4800

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.

Nov 8, 2018

Oct 29, 2018

Oct 22, 2018

Oct 3, 2018

Sep 26, 2018

Sep 18, 2018

Sep 10, 2018

Aug 23, 2018

Jul 31, 2018

Looking for more? Browse all our products here