The type of economic institution that works to provide services to a community and does not pay tax is a non-profit organization. Non-profit organizations are typically established to serve a specific purpose or benefit a particular group or cause, rather than to generate profit for their owners or shareholders. Examples of non-profit organizations include charities, foundations, educational institutions, healthcare providers, and religious organizations. As they work towards the betterment of society, non-profit organizations are often exempt from paying income tax on the donations or revenue they receive. However, it's important to note that they may still be subject to other taxes such as property tax or sales tax on certain activities.
