The Dewey Global Environmental Initiative: A Tax-Exempt Organization Module and Case Study with Fraud Risk Factors

Document Type

Article

Publication Date

1-1-2026

Abstract

Tax-exempt organizations continue to be scrutinized by taxpayers, political makers, and the media for reporting huge profits, paying enormous top executive salaries, and contributing to fraudulent financial scandals. Responding to such concerns, the 2017 Tax Cuts and Jobs Act imposed complex excise taxes on these organizations to address these issues. Further, the nonprofit sector has proliferated since 2006, dwarfing private company growth. Unfortunately, coverage of tax-exempt entities is not included in the curriculum of many graduate and undergraduate tax courses. Further, many students are unaware of taxation concerns that are unique to tax-exempt organizations. Given this instructional dearth, faculty can use the Dewey Global Environmental Initiatives case to increase students’ understanding of the tax fraud and penalty issues associated with lobbying expenditures, prohibited transactions, private foundation status, and unrelated business income. Since the case material includes coverage of the relevant tax regulations, the assignment can be used as a stand-alone module in either an advanced tax or a nonprofit organization course. Students are also provided with the opportunity to exercise their tax research skills, assess tax planning opportunities, and consider ethical issues.

Publication Source (Journal or Book title)

Advances in Taxation

First Page

203

Last Page

228

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