In the new tax reform law passed in December of 2017, while charitable deductions were in theory protected (outside of the raising of the standard deduction), another provision of the law may negatively impact nonprofits of all kinds.
The law as adopted, and currently in effect, now requires that nonprofits who offer certain fringe benefits (such as parking or access / payment to athletic facilities) will now be taxed as the employer for the value of those benefits per employee – expanding the UBIT (unrelated business income tax) provision of previous laws.
Our partners at Americans for the Arts have broken this new provision of the law down in a memo, linked below. We encourage all nonprofits to study this provision to ensure compliance, and also to take any action (as laid out in the memo below) to inform federal officials of the impact this may have on their organization.
