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Message: [QUOTE="businesslawyer, post: 4158391, member: 55"] But here is the bottom line -- at the end of the day, there are two types of business entities -- those where the profits get paid out to owners and those where they don't. Even if an athletic department is its own separate corporation, at least to date no one gets to keep the profits. And if that's the case, then the only basis to tax them is the government saying "we don't think your purpose is truly charitable." First, do we want the government making those decisions? But more fundamentally, most of our taxes of business entities is on profits. Athletic departments don't make money and stockpile the proceeds -- they spend proceeds to get better athletic programs. So I ask again -- what exactly are you taxing, because net income won't produce anything? [/QUOTE]