Week 4 Tax Code

Charitable organizations operate by raising capital and sharing the money allotted with the cause of their choice. These organizations can operate legally without having to pay federal taxes. This is because they become classified as a non profit, and file their taxes differently from other businesses.

The IRS regulates federal taxes and controls Internal Revenue in the United States. The IRS operates itself strictly based on the Federal Tax Code. This tax code changes everyday, and is responsible for collecting close to $950 billion in federal income taxes. The Tax code also  allows for charitable write offs, and 27% of Americans in 2011 utilized this to save a combined $158 billion in taxes. The clause for non profits to be exempt from taxation allows for charitable organization to flourish and expand their horizons. The government allows for these write offs, and these organizations seek to better their community through giving back.The government does not tax charitable organizations, but they do get a return result. Local organizations and nationwide organizations work to better the environment, education, and other causes for everyone. The government does not achieve funds through taxing non profits, but through not taxing them these organizations provide free services to the community. Many strong non profit organizations are responsible for providing welfare support, environment protection, and other services that our government could not handle efficiently themselves. An unwritten compromise of the tax code has allowed for non profits to expand, while giving back to the country and the local community.

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