Download this Paper Open PDF in Browser

The Role of Access in Charitable Tax Exemption

47 Pages Posted: 8 Mar 2005  

John D. Colombo

University of Illinois College of Law

Multiple version iconThere are 2 versions of this paper


Why are some activities that have commercial for-profit analogues (e.g., health care, "public interest" law firms, community redevelopment organizations) tax exempt? This article proposes an "access" test for tax exemption that would require nonprofit organizations whose services have commercial analogues to justify exemption on the basis of access to their services: either by providing access to underserved populations or by bringing services to the general population that are undersupplied by the private market. The article begins by exploring a number of Internal Revenue Service rulings and court cases dealing with charitable organizations that provide services that have commercial analogues and concludes that the IRS and courts are actually using access criteria to evaluate tax exemption. The article then relates an access-based test to the major theoretical bases for tax exemption, and then proceeds to propose an access-based doctrinal test for exemption. The article closes by illustrating how an access-based test would apply to current areas of exemption controversy.

Suggested Citation

Colombo, John D., The Role of Access in Charitable Tax Exemption. Washington University Law Quarterly, Vol. 82, p. 343, 2004. Available at SSRN:

John David Colombo (Contact Author)

University of Illinois College of Law ( email )

504 East Pennsylvania Avenue
232 Law Building
Champaign, IL 61820
United States
217-333-7985 (Phone)
217-244-1478 (Fax)

Paper statistics

Abstract Views