James B. Berg

Untaxed Competitors

 

I agree that it is unfair for nonprofit corporations to run unrelated businesses and then avoid taxation ("Tax Advantaged," Washington, August). However, if a nonprofit establishes a for-profit subsidiary that does pay taxes, I see no conflict whatsoever.

The captive audience may help these subsidiaries in the short run, but it does not guarantee them success in the marketplace. The ultimate test of a quality corporation is its ability to get repeat customers.