Question

For the second discussion this week, pick one of the two items below as well as a debate side (pro or con) and using the book as well as good research, present your point.

1) Nonprofits should not be restrained and as a result of the 1st amendment and the Citizens United decision, they have rights to free speech, even preachers from pulpits.

2) Anyone who makes profits (excess revenue over cost), no matter the source, from expected donations (tithing) or fees should pay taxes on that excess.

Answer 1

1. Non profits should not be restrained :

In simple terms,

• A non profit organization takes any profits it receives from goods, services, donations, or sponsorships, and cycles them back into the organization to further achieve its mission.
• Non profits commonly serve communities (clubs, churches, associations, chambers of commerce, etc.),
• They are organized around social causes (humanitarian aid, disease research, education funding, etc.)

Advantages :

Non profits should not be restrained because they are giving following advantages to the society.

1. Non Profit organisations distributes their earnings in their mission , they don’t distributes the incomes between the investors. This helps the society to balance the social benefits available to different classes of the society.
2. One of the most significant advantages of incorporation has to do with protecting members of your organization from personal liability. Board members, officers, and employees of your organization receive protection from liability for corporate debts or lawsuits. Creditors can only go after your corporate assets, not the personal assets of the people who manage, work for, or volunteer for your non profit. Even if you do incorporate and receive some of these protections, it is wise to purchase liability insurance to cover situations that may lie outside of incorporation law.
3. Being a corporation opens the door for employee benefits such as group life insurance, health insurance, a pension plan, etc., advantages not available to workers in unincorporated organizations.

Disadvantages :

Non Profit should be restrained with some conditions to monitor them because they may create following disadvantages to the society.

1. They may create certain dummy transactions to grab the personal benefits from the distributions of the income for their mission.
2. Availing personal benefits from the distributions of the incomes for their mission and resulting misutilisation of funds inappropriate manner.
3. Due to tax exemptions available to non profit organisation , they may fraud the public by receiving donations from the public and then not utilising the fund for which , donations were collected.

2. Any profit (excess of revenue over cost) no matter the source , from expected donations or fees should pay taxes on that excess.

Collection of taxes on all profits earned by non profit organisations.

( generally donations are received by non profit organisations)

Advantages :

1. Collecting taxes from non profit organisations would stop personal benefits to be availed by the management of the organisations.
2. This will stop dummy transactions which are done to steal the taxes.
3. This will stop black money transactions which may be executed through non profit organisations due to availability of exemption on donations received.

Disadvantages :

If non profit organisations are also taxed then this would result in following disadvantages :

1. If non profit organisations are taxed then very basis purpose of distributing social benefits from the donations received and achieving the social security balance for all class of the society would not achieved.
2. This will discourage activities which are done for Nobel cause of the society.
3. This will encourage the social security benefits imbalance in the society.