The Advantages and Risks of Being a Tax-exempt, Nonprofit Organization

Abstract
Most nonprofit hospitals enjoy exemptions from income, property, sales, and other taxes. The advantages of the tax exemption generally outweigh any disadvantages. Recent legislative and judicial challenges, however, have reduced the tax benefits of nonprofit hospitals. The authors review tax exemptions as they relate to hospitals, identify the primary advantages and risks, and highlight areas where nurse executives can further the exempt purpose of their institutions.

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