The thing about a non-profit is that it really doesn't reduce tax revenue much at all. The money has to go somewhere, to the employees as salary or perks that have to be reported on their tax forms. It all gets taxed in the end.
Ah yes, the whole there's no reason to have corporate taxes at all argument.
That seems like a conclusion jumped to with not a single example.
Sort of my point. Any illegitimate entity for tax avoidance purposes (whether posing as open source or otherwise) is going to only be something the IRS has ever heard of because it's not a real entity.
Or this IRS letter proudly displayed on the Apache Foundation
That's actually a pretty strong argument for my case. It lays out that they have determined apache to be a legitimate 501 (c)(3), that they are indeed not a 509 (a) and that any change in their funding could change that assessment. Seems reasonable.
These are hardly companies you have never heard of.
Exactly, so they get looked at, and the IRS moves on. They do, as the Apache letter clearly points out, have a number of requirements that need to be met and need to be continually met however. And they need to check on those occasionally.
To assure your continued exemption, you should keep records to show that funds are expended only for those purposes
The whole Apache letter is actually a fairly short summary of the kinds of things someone *could* do illegally that the IRS would look into eventually, to make sure you aren't doing. Because they would limit your tax liabilities.
They aren't necessarily pure tax dodges either, they, as pointed out