Which type of economic institution works to provide services to a community and does not pay taxes?

The type of economic institution that works to provide services to a community and typically does not pay taxes is a nonprofit organization. Nonprofits operate primarily for charitable, educational, religious, or other community-focused purposes rather than for profit. They often qualify for tax-exempt status under the Internal Revenue Code (e.g., 501(c)(3) organizations in the United States), which allows them to receive donations and conduct activities without the burden of certain taxes, thereby enabling them to allocate more resources to their mission and community services.