KPMG report: Intersection of ESG and tax for tax-exempt healthcare organizations

Role of tax in the environmental, social, and governance (ESG) conversation when an organization is tax-exempt

Tax-exempt healthcare organizations

The role of tax in the environmental, social, and governance (ESG) conversation is not always obvious when an organization is tax-exempt, but an organization’s chief tax officer or other tax leader is uniquely positioned to contribute to the organization’s ESG strategy.

Tax leaders at tax-exempt healthcare organizations have long been engaged in the practice of storytelling—that is, articulating a cohesive and compelling picture of the organization’s charitable mission, and gathering and presenting data demonstrating how the organization’s activities benefit the community. Tax-exempt tax leaders can embrace this skillset to develop a holistic narrative for their organization’s ESG objectives and accomplishments that integrates tax, health equity initiatives, programs addressing the social determinants of health, charity care, community benefit, and the organization’s overall system of mission-driven values and commitments.

Taking an integrated approach not only results in a crisper, more compelling narrative; it also leads to more efficient data collection, more effective reporting, and better-informed decisions when allocating resources to ESG-related activities.

Read a September 2022 report [PDF 3.8 MB] prepared by KPMG LLP that discusses the intersection of ESG and tax for tax-exempt healthcare organizations.


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