Understanding How the New Tax Law and Economy Impact Tax-Exempt Organizations

“Charitable deductions remain viable, but it may be more difficult to actually take them, given the increased standard deduction and the scaling back of many itemized deductions,” (Marie) Arrigo said. “Nonprofits may see a decline in donations, which may impact the sustainability of the nonprofits. However, major donors who are connected to the mission of the organization may very well remain philanthropic.”

Passage of the Tax Cuts and Jobs Act has many leaders of tax-exempt organizations seeking answers as to whether and how the new law will affect them. And most will be affected. There have been significant changes to the definition and treatment of unrelated business taxable income (“UBTI”) and the taxation of qualified transportation employee fringe benefits, as well as reductions in the incentives for charitable giving. Our Marie Arrigo was one of several noted professionals interviewed recently on these subjects and more; please click the link to read “Understanding How the New Tax Law and Economy Impact Tax-Exempt Organizations.”