Thursday, March 7, 2019
In her article, Sarah Ellsworth explores the key provisions of the Tax Cuts and Jobs Act that may affect nonprofit organizations. The changes include an increased standard deduction for individuals, increased estate.gift tax exclusions, increased limit on charitable contributions, imposing tax certain fringe benefits, lower corporate tax rate on UBTI, lower tax rates on political activities from 501(c)(4), (5), and (6) organizations, and new taxes on high compensation and higher education endowments. Many nonprofit organizations are concerned about these tax changes because they are expected to be terrible for nonprofits. As we enter 2019, many questions still remain about the long-term fallout of this tax reform. To learn more about why nonprofit organizations are worried about the new tax reform, click here.