37 ms·

This is just another attempt by those who think they have a better idea of how to use someone else's money. I'd rather see us start to question the "non-profit

by Nrsolis 11y ago

This is just another attempt by those who think they have a better idea of how to use someone else's money. I'd rather see us start to question the "non-profit" status of lots of hospitals that pay their management some seriously hefty salaries. http://www.modernhealthcare.com/article/20140809/MAGAZINE/308099987 http://www.modernhealthcare.com/article/20140809/MAGAZINE/30...

dragonwriter 11y ago
> I'd rather see us start to question the "non-profit" status of lots of hospitals that pay their management some seriously hefty salaries. Why? The salaries are taxed. (And salaries are a tax-deductible business expense even for non-exempt organizations.) Tax-exempt non-profit status (while they are many subtypes with different qualifications) is mainly (in terms of the common feature of that status) about whether anyone has a claim on the retained earnings, not whether large salaries are paid. (Charity status within the larger tax-exempt non-profit category -- charities, in addition to being tax-exempt, have contributions that are tax-deductible for the contributor -- is largely about serving one of a set of defined "charitable purposes".)
- Nrsolis 11y ago
  There is a lot of anecdotal evidence that some non-profit hospitals misuse their tax-advantaged status to benefit a very select group of individuals at the top of the management hierarchy. Again, if the states managed their money better, they wouldn't need to try and take the money that these educational institutions have amassed to secure their own mission. These schools manage their endowments very well because it's the only thing that provides them a measure of security in a very uncertain world. We should not be looking for new ways to hand politicians money. They've done a decidedly poor job thus far with the funds they've been entrusted with.

by Nrsolis 11y ago

dragonwriter 11y ago

> I'd rather see us start to question the "non-profit" status of lots of hospitals that pay their management some seriously hefty salaries. Why? The salaries are taxed. (And salaries are a tax-deductible business expense even for non-exempt organizations.) Tax-exempt non-profit status (while they are many subtypes with different qualifications) is mainly (in terms of the common feature of that status) about whether anyone has a claim on the retained earnings, not whether large salaries are paid. (Charity status within the larger tax-exempt non-profit category -- charities, in addition to being tax-exempt, have contributions that are tax-deductible for the contributor -- is largely about serving one of a set of defined "charitable purposes".)

Nrsolis 11y ago
There is a lot of anecdotal evidence that some non-profit hospitals misuse their tax-advantaged status to benefit a very select group of individuals at the top of the management hierarchy. Again, if the states managed their money better, they wouldn't need to try and take the money that these educational institutions have amassed to secure their own mission. These schools manage their endowments very well because it's the only thing that provides them a measure of security in a very uncertain world. We should not be looking for new ways to hand politicians money. They've done a decidedly poor job thus far with the funds they've been entrusted with.