Here’s How Tax-Exempt Nonprofits Benefit Everyone

In the Indiana Lawyer article, “Here’s How Tax-Exempt Nonprofits Benefit Everyone,” corporate counsel Brooke Dunn breaks down how tax-exempt organizations, such as charities and nonprofits, play an indispensable role in fostering social welfare and economic stability for the communities they support.

“These organizations often have a legal connection to leading community-based initiatives through requirements set by federal and state laws that tie their tax-exempt status, in large part, to the requirement that they operate exclusively for charitable, educational, or other purposes that benefit the public, rather than private interests,” Dunn notes.

Despite the benefits the nonprofits provide, Dunn says they often face challenges such as limited resources, rising costs of operations including staffing and supplies, and increasing scrutiny from regulators and the public. Dunn suggests nonprofit leaders collaborate with other nonprofits, use data-driven strategies and advocate for policy changes to better serve their communities.

“Tax-exempt organizations are uniquely positioned to address pressing societal issues that for-profit businesses or governmental agencies may lack the capacity or focus to tackle,” Dunn writes. “Charities and nonprofits provide essential services such as housing for the homeless, food for the hungry, healthcare for those who are uninsured or underinsured, disaster relief, and education programs for underserved populations.”

The full article is available to Indiana Lawyer subscribers.