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Nonprofit Connect Blog

On January 22, the IRS issued guidance that will help nonprofits quickly get back taxes paid on the now-repealed tax on nonprofit transportation benefits. In addition, find updates on proposed improvements to federal rules governing grants, an update on the proposed sale of the .org domain, and a reminder that the new Overtime Rule is in effect.

The tax on nonprofit transportation benefits has been retroactively repealed. Last week, bipartisan legislation that repeals the tax was passed by Congress, and the President signed the bill into effect Friday night. The December 2017 tax law imposed an unrelated business income tax (UBIT) of 21 percent on the expenses that nonprofits incur for providing employee benefits like bus passes and employee parking.

2017’s Tax Cuts and Jobs Act poses more than financial threats to the charitable sector. John Tyler, general counsel for the Ewing Marion Kauffman Foundation, discusses what should seem obvious: charitable organizations and businesses are not the same.

David L. Thompson, Vice President of Public Policy for the National Council of Nonprofits, summarizes the policy changes that nonprofits should care about, including federal tax law's impact on charitable giving and tax exemptions. Changes are coming and how we as nonprofits respond will affect the outcome.