Near Zero Taxable Income Reporting by Nonprofit Organizations
研究非营利组织如何将应税收入管理到接近零，发现大量组织报告应税收入在[-0.01, 0.01)区间，且规模、活动类型及付费CPA使用等因素影响该行为。
In this paper, we provide evidence consistent with nonprofit organizations managing their taxable income to near zero by examining the cross-sectional distribution of taxable income as reported on IRS form 990-T. We find an unusually large number of nonprofits that report taxable income profitability in the range of [–0.01, 0.01). Further analysis finds that various frictions and restrictions impede nonprofits from reporting near zero taxable income. We find that the likelihood that a nonprofit reports near zero taxable income is decreasing in size and when the taxable activity has a tax-exempt counterpart. We also find that charitable nonprofits are less likely to report near zero taxable income than are hospitals. Finally, we find that the use of a paid CPA preparer is associated with a higher probability of reporting near zero taxable income.