The value of NFP tax exempt status is the ability to avoid the significant financial burden of paying taxes. In addition to not paying taxes, which can account for upwards of 34 percent of net income, tax-exempt status also releases NFP organizations from paying most business fees and licenses and provides the ability to issue tax-exempt bonds (Nowicki, 2015). NFP also have the advantage of charitable contributions being tax deductible for the donor; this can be an additional incentive to giving by providing a tax benefit to the donor (Cutler,
The value of NFP tax exempt status is the ability to avoid the significant financial burden of paying taxes. In addition to not paying taxes, which can account for upwards of 34 percent of net income, tax-exempt status also releases NFP organizations from paying most business fees and licenses and provides the ability to issue tax-exempt bonds (Nowicki, 2015). NFP also have the advantage of charitable contributions being tax deductible for the donor; this can be an additional incentive to giving by providing a tax benefit to the donor (Cutler,