Recently, the National Football League (NFL) announced it was giving up its nonprofit status. This is a much-coveted designation because it exempts the entity from taxation. Continue reading Why the NFL and other professional sports don’t deserve nonprofit status
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Did You Know the NFL is a Non-Profit That Pays No Taxes?
Earlier this semester I gave a lecture on the economics of non-profit organizations. Non-profits are given their status because the government wants to provide extra incentives for organizations to tackle problems and for individuals to donate money to solve these problems. In my lecture I discuss some standard examples like hospitals, symphonies and colleges. Then I take students to GuideStar, which reports on the finances of non-profits. GuideStar allows you to see the actual forms, called the 990, that almost all non-profits file each year with the IRS. Some students are then assigned the tasks of creating homework problems based on the lecture. Jerry Lavoie, one of my students, sent in an amazing homework that showed the NFL is a non-profit organization that pays no taxes. I was shocked to read this, but after double checking his work, it is true. Continue reading Did You Know the NFL is a Non-Profit That Pays No Taxes?