Authors
Mark A Hall, John D Colombo
Publication date
1991
Journal
Wash. L. Rev.
Volume
66
Pages
307
Description
This Article examines the growing controversy over the multi-billion dollar charitable tax exemption enjoyed by nonprofit hospitals. It begins by articulating four criteria for evaluating a rationale of the charitable exemption: deservedness, incorporating the elements of worth and need; proportionality; universality; and historical consistency. The Article then employs these criteria to refute three conventional explanations of why nonprofit hospitals are exempt: because health care is a per se charitable activity; because the treatment of indigent patients relieves a government burden; and because nonprofit hospitals provide community benefits. The Article also uses these criteria to refute two academic theories: Boris Bittker's income measurement rationale and Henry Hansmann's capital subsidy theory.
This Article proposes a" donative theory" as an alternative rationale for the charitable exemption. The donative theory …
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Scholar articles
MA Hall, JD Colombo - Wash. L. Rev., 1991