Throughout the nearly 20 years of writing this column I have chronicled the drip-by-drip deterioration of the respect and legislative deference traditionally given to charities and other non-profit organizations. It was not my purpose, but who could ignore the many high-profile shenanigans over the years at United Way of America, American University, the Smithsonian, the Red Cross and others, involving tacky, greedy, sleazy and illegal conduct? I couldn't, and neither could Congress.

For the first time in my memory, we now have a major congressional figure publicly questioning the very premise of granting tax exemptions to some charities. Sen. Charles Grassley, R-Iowa, an influential overseer of the tax-exempt sector, has asked why fee-for-service charities such as hospitals and universities deserve a government subsidy when there is “no known discernible difference” between them and for-profit businesses providing the same services. It is a very good question, but it would never even have been asked years ago. And it gets worse.

Grassley has also asked how much charitable tax exemptions are costing the government in lost revenue and whether they ought to be regarded as tax expenditures. His idea is that the ongoing budget and tax-reform process should have the charity tax exemption on the table. This move should send shock waves throughout the tax-exempt community.