Independent Sector, a national coalition of nonprofits, foundations and corporate giving programs, is seeking input from nonprofit organizations around the country on the impact of changes to the unrelated business income tax imposed on nonprofits as a result of tax reform.
The 2017 federal tax law imposed two new taxes on charitable nonprofits, houses of worship, foundations, and other tax-exempt organizations. One of the provisions imposes a 21-percent tax on nonprofits for the transportation benefits for employees, such as transit passes and parking. The other new tax requires nonprofits to break out each “separate” “trade or business” for calculating unrelated business income.
The nonprofit sector is still awaiting regulations from the IRS to clarify when these new tax burdens apply and when they don’t. Completing this survey will help inform policy makers of the current impact of the law on the nonprofit sector.
- Is your organization facing increased expenses as a result of the parking or transportation benefits you provide employees?
- Are the modifications to the UBIT affecting your ability to deliver on your mission?
Please consider participating in the brief survey by November 8.