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Giving Compass' Take:
• In this story, Independent Sector looks at how two provisions in the 2017 Tax Cuts and Jobs Act will cost nonprofit organizations thousands of dollars a year.
• The author writes that these provisions disproportionately affect smaller organizations. Where can these organizations find room in their budgets/how can they increase revenue?
• To learn about how the new tax law has affected charitable giving, click here.
New research commissioned by Independent Sector finds that two tax provisions related to unrelated business income divert thousands of dollars from nonprofit missions to the federal government.
The 2017 Tax Cuts and Jobs Act included provisions that will require nonprofits to pay a 21 percent tax on the cost of employee transportation benefits, including transit and parking, and to calculate unrelated income streams in a way that increases tax burden.
Independent Sector partnered with researchers at the Urban Institute and the George Washington University to quantify the impact of these tax provisions. A survey of more than 700 nonprofit organizations found that the new tax on transportation fringe benefits will divert an average of about $12,000 away from each nonprofit’s mission per year.
Read the full article about the Tax Cuts and Jobs Act at Independent Sector