Looming Battle of Government vs. Nonprofits

n an economy where local governments are stretched to the financial breaking point, officials are looking for ways to boost tax revenue. Increasingly, one set of institutions that has largely gone unnoticed in the tax debate has become a high-profile target for tax hikes: nonprofit charitable institutions.

An August 2012 publication from the Urban Institute Center on Nonprofits and Philanthropy, which examined in detail the huge impact that large nonprofit institutions like universities and hospitals can have on the local community, makes the specter of taxation loom even larger.

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