In my opinion, the real question that comes up in the recent flare-up over the IRS scrutiny of organizations looking for tax-free status is; where does it stop?
We are a country that is awash in red ink and demands for lower taxes. Every time an organization is allowed to forgo taxes, it falls on someone else to make up the difference.
I have never had a problem when this status is granted to churches and charities that raise money to assist the needy, cure diseases, help the sick and disabled, or provide for the elderly and children. This is what we created tax exempt status for. These organizations provide a service to our society as a whole. The money is used for things our government would probably feel an obligation to do anyway.
It seems to me the organizations that are complaining the loudest about being over analyzed, are organizations that serve the needs of a few people who are perfectly capable of helping themselves. To give these organizations tax-free status means we are all supporting their goals and missions by paying their taxes for them. In fact, none of these organizations have been refused tax-free status, only asked to provide more information to confirm it.
I say congratulations to the IRS for doing the job we hired them to do. Tax free status should be very hard but not impossible to obtain. Organizations need to show they are worthy of this status and it is their responsibility to prove it. If it takes a lot of time and extra work, then we know that the best interests of the American people are being served. — Donald Johnson, Detroit Lakes