We have an estimated 2 million nonprofit organizations in our nation. Religious groups account for 350,000 and 1.4 million in the annual IRS registry and a further smaller group in increments.
Annual income for these groups is about $1.6 trillion yearly. Revenue sources include donations, membership fees and many other areas.
Over the last 100 years, rules for granting tax exemptions are a hodgepodge of laws that evolved over this period. It's been suggested we allow tax exemptions for nonprofits that serve as an alternative to the governmental sector and can demonstrate that existing budgets of specific government agencies and programs will be reduced as a result of nonprofit activities.
For the remaining nonprofits, a 10 percent excise tax could generate about $140 billion dollars annually. Let us put all of our taxing cards on the table. No one is excluded.
- Carl A. Bernacky, Dyer