Malpractice Essay

1208 Words5 Pages
Issue Public Private, Nonprofit Private, For Profit Exempt from income taxes YES YES NO Exempt from property taxes YES YES NO Eligible for tax deductible donations YES YES NO Able to use tax exempt bond financing YES YES NO Able to use equity financing NO NO YES Able to use employee incentives of stock options NO NO YES Subject to public oversight and control YES NO Partial Subject to public employment laws YES NO YES Obligated to provide charity care YES YES NO Subject to restrictions on use of public funds YES NO NO Subject to IRS rules for 501c (3) corporations NO YES NO Recommendation It is my recommendation that the county attest and allow a private; nonprofit organization to be placed on the county land. It appears that this type of organization gets the best of both worlds. Under 501c (3) IRS rules the entity can apply for income tax exempt status along with exemption from property taxes while having the ability to still utilize tax exempt bond financing and is eligible for tax deductible donations. A private; nonprofit does not have the ability to use equity financing nor are they able to use employee incentives of stock options. The lack of ability of the organization to use equity financing is not a factor as they can use bond financing and they typically do not have to due to their ability to maintain a surplus due to lack of tax responsibility. With the inability for the employees to receive stock options does leave area for employee dissatisfaction; they still can invest in other employee incentives such as lower insurance premiums, wellness programs, and other employee programs. Private, nonprofit organizations are not subject to high levels of public oversight or control and while they are still subject to employment laws they are not as harsh as public and for profit organizations. They are obligated to pay minor charity care and

More about Malpractice Essay

Open Document