IDEAS home Printed from
   My bibliography  Save this article

Nonprofits Investment Decisions under the Current US Tax Law: Are Nonprofits Departing from Their Mission?


  • Monica Auteri

    () (Università "La Sapienza", Roma)


Over the past two decades nonprofits organizations have been urged to become more business-like in order to survive and grow, and to depart from the single-minded pursuit of their missions. This paper explores investment decisions of nonprofits under current US tax law, and specifically considers the major effects of choices made by nonprofit organizations to engage in commercial activities. From the empirical investigation conducted using data from "Form 990" tax return filed in 1996 by a total of 12,474 nonprofit charitable organizations it emerges that nonprofits prefer not to engage in unr elated business activities, but do so if they feel pressing needs for additional sources of finance.

Suggested Citation

  • Monica Auteri, 2005. "Nonprofits Investment Decisions under the Current US Tax Law: Are Nonprofits Departing from Their Mission?," Rivista di Politica Economica, SIPI Spa, vol. 95(3), pages 67-102, May-June.
  • Handle: RePEc:rpo:ripoec:v:95:y:2005:i:3:p:67-102

    Download full text from publisher

    File URL:
    Download Restriction: Payment required

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rpo:ripoec:v:95:y:2005:i:3:p:67-102. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sabrina Marino). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.