Shared Resources

Why is the NFL a nonprofit?

As discussed in class this week, under tax code 501(c)(6) the NFL, as well as other groups such as fraternities/sororities, Labor Unions, Chambers of Commerce, Social Clubs and Identity-Based Organizations, is eligible for tax exemption.

I would like to share with you the following video, which provides additional detail on this particular topic, in regards to the NFL:

https://www.youtube.com/watch?v=-pRP2xZQIwA

As explained in the video, though the 32 teams in the NFL are not tax-exempt, the NFL league office (including funds paid to the NFL commissioner) is. But does the NFL truly “strive for public good/make society better”?

According to the video, this question may be irrelevant when it comes to the NFL, since even if they were a for-profit organization, as they reported losses (during 2012), the financial implications may be minimal, if any. But what of other organizations that are considered as nonprofits, but don’t necessarily fit the traditional role of non-profits and are experiencing profits? Should these organizations pay taxes?

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