Tax exemption: why not-for-profits deserve it.

Not-for-profit healthcare facilities' tax-exempt status is coming under attack, particularly in congressional hearings on the unrelated business income tax. Therefore tax-exempt providers must keep adequate records of all services and expenditures to demonstrate and preserve their exempt nature. A facility qualifies for tax exemption by demonstrating that it is legally organized to achieve its exempt purpose and that the bulk of its activities is directed toward that goal.