Private gain from corporate activities. A nonprofit corporation cannot keep its tax exempt status if there is “inurement” to individuals or proprietary (for-profit) interests. One common area in which inurement issues are raised today is physician recruitment. Hospitals often provide incentives to attract physicians in needed specialties. If the hospital contracts to pay the physician a salary in excess of reasonable compensation for services, or provides an interest-free loan to the physician, these incentives may be considered by the Internal Revenue Service (IRS) to be inurement and thus jeopardize the hospital’s tax exempt status. The hospital must show that it (and the community) receive measurable value for the incentives provided. Inurement issues are also sometimes raised by hospital joint ventures.