Tax Policy

2018 Capitol Hill Visits

The Center recently visited Washington, DC to advocate with our members of Congress on nonprofit issues. These include:

1. Protecting nonprofit nonpartisanship.

2. UBIT

3. Universal charitable deduction.

4. 2020 U.S.Census

5. Public Service Loan Forgiveness Program

New Tax on Transportation and Parking Benefits is Problematic for Nonprofits

New Tax on Transportation and Parking Benefits is Problematic for Nonprofits

An under-the-radar provision in the Tax Cuts and Jobs Act that was passed and signed into law in December 2017 imposes a new tax on nonprofits that provide transportation and parking benefits to their employees. Nonprofits that provide these benefits to their employees are now required to pay unrelated business income tax (UBIT) on these expenses and must file Form 990-T with the IRS.

Take action on tax reform

Now that the U.S. Senate has passed tax reform plan (see details below), House and Senate leaders are negotiating a final version of the bill that they hope to send to the President for his signature as soon as this Friday. While both the House and Senate plans include a variety of tax changes that are problematic for nonprofits (plus a few small changes that might benefit nonprofits), there is a big difference between the two plans.

What You Need to Know About Major Nonprofit Tax Law Changes

This fall, Congress is in the process of rewriting the Internal Revenue Code with the dual goals of lowering individual and corporate income tax rates and simplifying our nation's tax laws. This tax overhaul has major implications for all 501(c)(3) nonprofits. Among other things, the tax reform proposals could reduce charitable giving, politicize 501(c)(3) nonprofits, eliminate financing options for nonprofits, and create new taxes on certain nonprofit activities.

Income Tax Cap Could Mean Unintended Burdens for Nonprofits

Income Tax Cap Could Mean Unintended Burdens for Nonprofits

Charitable nonprofits across North Carolina are concerned that the proposed constitutional amendment to cap the state’s income tax rate at 5.5% (S.817) could have unintended consequences for nonprofits that provide essential services in every community in our state. If the 5.5% income tax cap passed as a constitutional amendment, it would likely lead to new taxes, fewer private contributions, and increased burdens on charitable nonprofits.