The topic of whether non-profit organizations should be tax-exempt is a recurring theme in IELTS Writing Task 2. Based on an analysis of past exam questions and trends, this subject has appeared frequently in recent years and is likely to continue being a popular topic for future tests. Let’s examine a relevant question that has been featured in actual IELTS exams:
Some people believe that non-profit organizations should be tax-exempt, while others argue that they should pay taxes like any other business. Discuss both views and give your own opinion.
Analyzing the Question
This question requires candidates to:
- Discuss arguments for non-profit organizations being tax-exempt
- Discuss arguments against non-profit organizations being tax-exempt
- Provide their own opinion on the matter
It’s crucial to address all parts of the question to achieve a high band score. Let’s now look at sample essays for different band scores, starting with a high-band response.
Sample Essay 1 (Band 8-9)
The debate over whether non-profit organizations should enjoy tax-exempt status or be subject to taxation like for-profit businesses is a complex and nuanced issue. While there are valid arguments on both sides, I believe that non-profit organizations should maintain their tax-exempt status, albeit with stricter oversight and regulations.
Proponents of tax exemption for non-profits argue that these organizations provide vital services to society that would otherwise fall to the government. By relieving the burden on public services, non-profits effectively save taxpayers money in the long run. Moreover, the tax savings allow these organizations to allocate more resources directly to their missions, whether it’s providing healthcare, education, or environmental conservation. This efficiency in resource allocation can lead to greater social impact and innovation in addressing societal challenges.
On the other hand, those who advocate for taxing non-profits contend that many of these organizations have grown into large, powerful entities that compete with for-profit businesses. They argue that tax exemption creates an unfair advantage in the marketplace and that some non-profits exploit their status for financial gain rather than focusing on their charitable missions. Additionally, as non-profits grow in size and influence, they may strain local infrastructure and services without contributing to the tax base that supports these amenities.
In my opinion, while the concerns about potential abuse and unfair competition are valid, the overall benefits of tax exemption for genuine non-profit organizations outweigh the drawbacks. However, I believe that the solution lies in implementing more rigorous oversight and clearer guidelines for qualifying as a tax-exempt entity. This could include regular audits, stricter reporting requirements, and limits on commercial activities unrelated to an organization’s core mission.
By maintaining tax exemption with enhanced accountability measures, we can ensure that non-profit organizations continue to play their crucial role in society while addressing concerns about fairness and potential abuse. This balanced approach would preserve the incentives for charitable work while safeguarding the integrity of the tax system and promoting a level playing field in the broader economy.
Explanation of Band 8-9 Score
This essay demonstrates the characteristics of a high band score (8-9) for the following reasons:
- Task Response: The essay fully addresses all parts of the task, discussing both views and clearly stating the writer’s opinion.
- Coherence and Cohesion: The essay is well-organized with clear paragraphing and effective use of cohesive devices.
- Lexical Resource: It uses a wide range of vocabulary with precision and sophistication (e.g., “nuanced issue,” “strain local infrastructure,” “rigorous oversight”).
- Grammatical Range and Accuracy: The essay showcases a wide range of complex structures used accurately (e.g., “While there are valid arguments on both sides,” “By maintaining tax exemption with enhanced accountability measures”).
Sample Essay 2 (Band 6-7)
The question of whether non-profit organizations should pay taxes or not is a topic of much debate. There are good reasons for both sides of the argument, and I will discuss these before giving my own view.
On one hand, many people think non-profit organizations should not pay taxes. The main reason for this is that these organizations do good work for society. They often help people in need or support important causes like education or the environment. If they had to pay taxes, they would have less money to spend on their important work. Also, non-profits often do work that the government would otherwise have to do, so by not taxing them, the government is indirectly supporting their work.
On the other hand, some argue that non-profit organizations should pay taxes like other businesses. They say that many non-profits are very large and powerful, and compete with regular businesses. This could be seen as unfair if they don’t have to pay taxes. Another point is that non-profits use public services like roads and police, so they should contribute to paying for these through taxes.
In my opinion, I think that non-profit organizations should keep their tax-exempt status, but with some changes. I believe the good they do for society is very important and worth supporting. However, I also think there should be stricter rules about what counts as a non-profit. There should be regular checks to make sure they are really using their money for good causes and not just to avoid taxes.
To conclude, while there are arguments for both sides, I believe that the benefits of keeping non-profits tax-exempt outweigh the drawbacks, as long as there is proper oversight.
Explanation of Band 6-7 Score
This essay demonstrates the characteristics of a mid-range band score (6-7) for the following reasons:
- Task Response: The essay addresses all parts of the task, but the ideas could be more fully developed.
- Coherence and Cohesion: The essay is generally well-organized, but the use of cohesive devices is less sophisticated than in the Band 8-9 essay.
- Lexical Resource: It uses an adequate range of vocabulary, but lacks the precision and sophistication of higher band scores.
- Grammatical Range and Accuracy: The essay uses a mix of simple and complex sentences, with generally good control, but lacks the variety and accuracy of the Band 8-9 essay.
Key Vocabulary
- tax-exempt (adjective) – /tæks ɪɡˈzempt/ – not subject to tax
- non-profit organization (noun) – /nɒn ˈprɒfɪt ˌɔːɡənaɪˈzeɪʃən/ – an organization that uses its earnings to achieve its goals rather than distributing them as profit
- oversight (noun) – /ˈəʊvəsaɪt/ – the action of overseeing something
- burden (noun) – /ˈbɜːdn/ – a duty or responsibility that causes worry, difficulty, or hard work
- allocate (verb) – /ˈæləkeɪt/ – to give something to someone as their share of a total amount
- contend (verb) – /kənˈtend/ – to assert something as a position in an argument
- rigorous (adjective) – /ˈrɪɡərəs/ – extremely thorough and careful
- accountability (noun) – /əˌkaʊntəˈbɪləti/ – the fact or condition of being accountable; responsibility
Conclusion
The topic of tax exemption for non-profit organizations is likely to remain relevant in IELTS Writing Task 2. To prepare, practice writing essays on similar topics, such as:
- The role of charities in modern society
- Government funding for non-profit organizations
- The impact of large non-profits on local economies
Remember to always analyze the question carefully, address all parts of the task, and use a range of vocabulary and grammatical structures appropriate to your target band score. Feel free to practice by writing your own essay on this topic and sharing it in the comments for feedback and discussion.