Primary File Info
The Tax-Exempt Status pf AARP
Kathryn Simms, Jeffry M. Netter
January 1, 2013
Strategy & General Management, Accounting & Finance
Tax-exempt status, nonprofit organizations, 501(c)(3) organizations, 501(c)(4) organizations, lobbying
Business Case Journal
“The Tax-exempt Status of AARP” is a descriptive case study. It covers the aftermath of the issuance of Behind the Veil: The AARP America Doesn’t Know, a 40-page Investigative Report released by Wally Herger (Representative, California) and Dave Reichert (Representative, Washington). This report voiced concerns about AARP’s lobbying practices, royalty income, transparency, CEO compensation structure, and a variety of similar concerns. As a result, the press, American public, and rival political parties engaged in an intense debate over whether AARP was a legitimate tax-exempt organization or a colossal for-profit enterprise. Students are provided an opportunity to analyze the merits of arguments made by each side.