Learning that groups such as fraternities/sororities, the NFL and social clubs are tax exempt through this week’s readings and in-class lesson came as a surprise. I have worked at a nonprofit organization for just over 6 years, and if asked to define a nonprofit off the top of my head, I would provide a list similar to the one we compiled in class. A nonprofit organization:

• Strives toward a mission/public good
• Provides no profit for shareholders
• Is not part of the government (NGO)
• Is tax-exempt
• Is supported by grants & fundraising and by the people, to make society better

Perhaps because my experience with nonprofits has been limited to 501(c)(3)’s, I would not have thought of fraternities/sororities, the NFL, or social clubs as nonprofits. But these groups, along with Labor Unions, Chambers of Commerce and Identity Based Organizations qualify for tax-exemption under tax code 501(c)(6). Though some of these groups have positive implications such as protecting workers, providing government regulation and empowering individuals, it can be argued that other groups could negatively impact society, as they are given free reign in determining who can be excluded from the group. This begs the question, should institutions that potentially promote non-inclusion be granted tax-exemption? How does this strive towards a public good and/or making society better? But then again, similar to the issue of the IRS deciding if an organization is granted tax-exemptions, who should get to decide this? Perhaps tolerating the bad in order to also benefit from the good is the only reasonable option.