In terms of tax implications, what benefit do not-for-profit organizations often have?

Not-for-profit organizations often benefit from the ability to issue tax-exempt bonds, which can be a significant advantage in financing their operations or capital projects. This means that they can borrow money at lower interest rates because the interest on the bonds is exempt from federal income tax. This arrangement not only reduces the cost of borrowing but can also encourage investment from individuals and institutions looking to support the organization's mission while also taking advantage of tax benefits.

This capability to issue tax-exempt bonds is critical for funding facilities and infrastructure, allowing not-for-profits to maximize their resources for service delivery without the additional financial burden that for-profit entities might face due to higher borrowing costs associated with taxable bonds. By leveraging these financial instruments, not-for-profits can effectively manage their financial needs while fulfilling their missions.