Friday, June 29, 2018

Small Details in GOP Tax Plan Affect NY Nonprofits in a Big Way

In her article, Sharon Stapel, discusses how the GOP tax plan (now the Tax Cuts and Jobs Act) will affect nonprofit organizations in the state of New York. She begins her article by discussing some of the proposed changes that did not make it into the final bill. These include eliminating the private activity bonds, imposing an excise tax on tax-exempt organizations, and including payout requirements for donor advised funds. Next, she discusses how nonprofits are now taxed on unrelated business income at the corporate tax rate and how there is a new excise tax of 21% on nonprofit employees who make more than $1 million with the nonprofit paying the tax and not the employee. Then she discusses how the bill cuts funding to certain social welfare funds and how those funding cuts will affect the nonprofits of New York. She then goes on to explain that the jobs act eliminates the penalty for not complying with the individual mandate, which she fears will result in higher health insurance for nonprofits. To learn more about how the small details in the jobs act affect nonprofits, click here: https://www.nynmedia.com/news/small-details-in-gop-tax-plan-affect-ny-nonprofits-in-a-big-way dab

https://lawprofessors.typepad.com/nonprofit/2018/06/small-details-in-gop-tax-plan-affect-ny-nonprofits-in-a-big-way.html

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