Some Nonprofits Rake In Millions, But Spend Little On Good Deeds

Beauty pageants? The NFL? Why are these organizations tax-exempt? A new report released today by Sen. Tom Coburn breaks down the 9,000-page tax code and calls for loopholes to be closed.

There are about 1.6 million tax-exempt organizations in the United States. While many provide vital services, some take in millions of dollars but spend little on good deeds. These include celebrity nonprofits, sports leagues, and country clubs, according to a new report from Sen. Tom Coburn (R-Oklahoma). Here are some examples:

Some celebrity nonprofits give barely anything to charity.

Sports leagues, like the NFL and the PGA Tour, don't pay taxes on huge portions of their revenue.

What do beauty pageants, shooting clubs, a casino and racetrack, and lobbying groups have in common?

Country clubs, fraternities, hobby clubs, and alumni associations can all be tax-exempt too.

Organizations that claim to help terminally ill children, veterans, and police sometimes spend just pennies on charity.

Coburn's report calls on Congress to make the tax code less indecipherable and opaque.

"Taxes should not be determined by who has access to the craftiest accountants, lobbyists and politicians," Coburn wrote.

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