Non-Profit Law, Taxation, and Policy

Nonprofits play a critical role across the globe, offering a way to advance public goals which is largely independent of governments. This course explores a range of legal, tax, governance, management, and policy issues about nonprofits.

The course begins by identifying the defining features of nonprofits and analyzing their strengths and weaknesses. What makes nonprofits different from for-profit firms? What are their advantages and disadvantages in pursuing public goals?

The course then turns to regulatory and tax issues. What is the role of different stakeholders within nonprofits, including the board, donors, managers, and beneficiaries? What are their sources of legal authority? What government institutions are responsible for regulating nonprofits in the U.S.? What key tax issues arise for nonprofits and their donors? What are the relevant rules supposed to accomplish? How successful are they in achieving these goals?

The course concludes by focusing on governance and policy issues. For example, why is it especially challenging for nonprofits to set priorities? How should they address these challenges? What information should nonprofits share with the public? What strategies should they use to raise money? What is the rationale for subsidizing nonprofits? Are the subsidies structured the right way?

No prior knowledge of tax law is assumed in this class. Federal income tax is NOT a prerequisite.

For each class session, discussion questions are provided in advance. Students do not have to hand in answers to these questions, but should use them to prepare for class. These questions organize our class discussion and also offer guidance about which issues students should focus on in the course. Strong class participation can improve a student's grade.