April 23, 2009

Many Charities Avoid Business-Income Tax

By Grant Williams

Only 40 percent of the nearly 13,200 charities that reported receiving business income not related to their missions wound up paying tax on those earnings for the 2005 tax year, according to new statistics released by the Internal Revenue Service.

These charities reported a collective gross income of more than $6-billion, yet paid just $260-million in tax. (Both figures were the highest since the IRS began to keep track in the 1992 tax year.)

Under federal law, nonprofit groups

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