Ohio State University Tax Exempt Status: What You Need to Know

Is Ohio State University tax exempt?
The Ohio State University is exempt from and has no filing requirement for the Columbus Admissions Tax. However, Ohio State has agreed to voluntarily participate in the Admissions Tax, to the extent it holds applicable events.
Read more on busfin.osu.edu

The public university Ohio State University (OSU) is situated in Columbus, Ohio. According to Internal Revenue Code Section 115(a), OSU is exempt from paying federal income tax because it is a public institution. Additionally, it is free from paying state and local income taxes because it is a state-supported institution.

OSU’s tax-exempt status enables it to devote more funds to its educational endeavors, research projects, and student services. Although OSU is tax-exempt, it’s crucial to remember that taxes like sales and property taxes still apply to it. OSU negotiates payment in lieu of taxes with the local government even though its property is subject to property tax.

It is important to note that OSU is not the only institution with tax-exempt status. Other significant colleges like Michigan State University and the University of Texas at Austin are among the numerous public universities that are tax-exempt nationwide.

Can the Nonprofit Organization’s Founder Serve on the Board of Directors?

Yes, the founder of a nonprofit organization is eligible to be on the board of directors. However, if the founder also serves as an executive director or has a top management position inside the business, having the founder on the board may lead to potential conflicts of interest.

It is advised that the founder relinquishes all management positions and concentrates completely on their board membership in order to prevent conflicts of interest. Additionally, having a board of directors that is independent and consists of people with a variety of backgrounds and areas of expertise can aid in ensuring that the nonprofit is properly controlled.

Can a nonprofit’s president also serve as the treasurer? Legally speaking, it is not forbidden for a nonprofit’s president to also hold the position of treasurer. However, because it may lead to potential conflicts of interest and impede financial control, it is generally not advised.

The nonprofit’s finances, including the budget, investments, and financial statements, are under the treasurer’s control. The individual may be tempted to put other organizational objectives ahead of financial responsibility if they are also the nonprofit’s president, endangering the nonprofit’s financial stability.

In conclusion, Ohio State University’s tax-exempt status enables it to devote more funds to its educational efforts, research projects, and student services. Although a nonprofit’s founder is permitted to sit on the board of directors, it is advised that they give up any management positions to avoid any potential conflicts of interest. Similarly, while it is not illegal for a nonprofit’s president to also serve as its treasurer, doing so is generally not advised because it can compromise the organization’s ability to oversee finances.