1. Should gifts made by individuals to a nonprofit organization that receives the largest portion of its revenues from fees for services—for example, a hospital that is mostly supported by payments from patients and insurance—be fully tax deductible, partially tax deductible, or not deductible at all? Explain your answer.
2. Suppose a nonprofit organization operates a business that is related to its mission, such that revenue is not subject to the UBIT, but it competes directly with a for-profit business nearby that must pay taxes. For example, think about a nonprofit bookstore that is near another bookstore run by private owners as a for-profit business. Is that unfair competition with the for-profit businesses? Should the nonprofit be taxed just to level the playing field? Why or why not?"