Unfortunately non profit != charitable.

That’s what this article is all about. Separating charitable non profits from non charitable non profits and taxing the latter.

No, a non-profit is by definition a charity _for something_. It’s a public benefit, and thus not taxed.

If it’s not a charity, but uses 501(c)(3), that’s just tax fraud! Tax fraud is already illegal!

You read the law at https://www.law.cornell.edu/uscode/text/26/501

Most hospitals are not charities. Theyre run by MBAs and everything is about profit margins

I deliberately avoided the usage of the term “charity” because the legal definition for tax purposes is indeed different from what people colloquially think of as charities.

I used the unwieldy terms “charitable non profit” and “non charitable non profit”, and your link proves me right by explicitly pointing out that charitable organizations are only 1 form of non profit that is tax exempt.

> exclusively to religious, charitable, scientific, literary, educational, and fraternal purposes

I know someone in real estate who is advised by his wealth advisor to set up an apartment building that gives lower rents to wounded veterans in his small town.

That way it would be non-profit and he wouldn't have to pay property taxes and the one or two wounded veterans might get a good place to stay but he would be making bank with the other tenants

As a note these kinds of things the IRS figures out ... eventually, and then they have you.

The realities of real estate investment involves a ton of things, but there is probably some advantage to renting to veterans, it's not to the point of writing off the entire income from an entire building.

Not paying property taxes or sales taxes on any of the construction materials is a huge advantage.

The trick there would be to actually incentivize charity instead of bloat and wallet fattening.

That's the theory. In practice it incentivizes a lot of corruption.