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House of Representatives
Session of 2019 - 2020 Regular Session


Posted: June 11, 2019 05:41 PM
From: Representative Christopher M. Rabb
To: All House members
Subject: LBFC Study on Tax-Exempt Nonprofits in PA
For many of us, when we hear the term “non-profit corporation,” we instantly think of charities that exist solely to promote the greater good.

It might come as a surprise to some that many large, profit-generating universities, hospitals, and sports organizations can also be classified as non-profits and are able to take advantage of the tax-exempt status that Pennsylvania law provides.

Many non-profit corporations in our state are granted tax-exempt status because it is believed that the value they create in their respective communities outweighs their share of taxes.

To ensure that this is the case, we need to take stock of the tax-exempt non-profits registered with the Pennsylvania Department of State as well as the level of accountability which the Department holds them to.

With this goal in mind, I am introducing a resolution which directs the Legislative Budget and Finance Committee to examine these organizations to determine which ones are truly worthy of maintaining their tax-exempt status and report their findings to the General Assembly.

In addition to large non-profit organizations that seemingly only further line the pockets of the wealthy, I, and many of our colleagues, recently discovered that there are non-profits in this Commonwealth that believe that the distribution of inflammatory, offensive, and ethnically insensitive materials falls within the confines of “the greater good.”

We should not be condoning this type of action by not holding these organizations accountable. Instead, it is imperative that we invest only in nonprofit corporations that invest back into our communities.

Please join me in this quest for deeper scrutiny and accountability regarding non-profit corporations and the tax burden placed on working Pennsylvanians who subsidize their operations.

Introduced as HR953