Nonprofit Organizations Deserve Tax Exemptions

"Health is wealth" is an important saying which actually makes us feel, yes that's real. Without health people become dull and fail to perform routine tasks. Whenever people feel ill they go to a hospital for treatment. Going to a corporate hospital has become costly. In order to cope with rates in the hospital industry, some social organizations have come forward to set up nonprofit health care organizations. Most of the hospitals and health care organizations located in USA work for non-profit i.e. they don't promise any money to their share holders. They work for free without taking any money from patients.

There are 16% of profit corporate hospitals in USA; all these people pay tax to government. Nonprofits are tax exempted; they do not pay any tax to the government. These days the discussion about nonprofit organization has become popular. Investors blame nonprofit organizations for not paying any money to the government. Investors have some common doubts in mind like: Are nonprofit organizations different from profit? Do they provide enough care and medications to community?

All these questions have one common answer. Hospital industry is similar to real estate. Everything people see depends on the location where hospitals are situated. A hospital situated in an affluent area will draw insured patients. This means that it will provide less charity to uninsured patients. This is why most of these profit organizations tend to provide less charity to customers. For profit organizations don't close doors for the poor, they always look to build hospitals only in areas where there are few poor people. For-profit organizations work for benefits of share holders and owners but not for the poor.

Nonprofit health care organizations and hospitals on the other hand begin their journey as charitable institutions with a common motive to serve society. Most of these charities and organizations are located in poor rural areas or in inner areas of cities. These charities serve the uninsured and underinsured population. They operate with a mission, and try to reach those goals within less time. Analysts of health care say, all nonprofit organizations do not deserve tax exemptions. Some of these nonprofit health care organizations perform illegal acts and cheat the government. Such organizations are not to be given tax breaks.

A study revealed that only one quarter of nonprofit health care organizations are involved in providing enough uncompensated care to poor and uninsured patients. Another study revealed that nonprofit health care hospitals which were involved in subsidized or free treatment are engaged in other forms of community service. All studies revealed that nonprofit organizations are able to cope with challenges, but they also need support from federal authorities.

There is nonstop competition between nonprofit and for profit health care organizations. In many regions of USA, nonprofit organizations enjoy high demand as compared to for profit health care organizations. Nonprofit health care organizations must work with honesty, for well being of the society. When nonprofit organizations achieve proper reputation, definitely government supports them and gives them monetary support.