Tax Act Impact on Charities: New Report

In a number of posts in the last 18 months or so, we’ve reported on the fallout from the hastily adopted and not well-thought-out 2017 Tax Cuts & Jobs Act (TCJA). Most recently, in The Fringe Benefits Tax: Hope for Repeal (April 9, 2019), we told you about some possible (bipartisan) legislative action to repeal one of the provisions most disliked by the charitable sector: the new UBI tax on transportation fringe Read More

IRS Asks for Priority Guidance Suggestions

The Internal Revenue Service’s primary mission is the administration of the federal tax laws. Part of that responsibility is guidance and education of individuals and entities that are subject to these tax provisions. Each year, well in advance of the beginning of the upcoming fiscal year (July 1 - June 30), the IRS, in coordination with Treasury Department officials, produces a document called the Priority Read More

Endowments and Offshore Tax Havens

In recent years, Congress has made no secret that it has concerns about the billion-dollar endowments of certain tax-exempt colleges and universities. A particularly troubling aspect, in the view of lawmakers and many in the general public, is the rapid jump in tuition costs at American schools at a time when the wealthiest institutions appear to have comfortable cushions of cash. Lawmakers asked pointed questions Read More

The Fourth Way to Sink Your Tax Exemption: Too Much Unrelated Business Income

In “5 Ways to Sink Your Tax Exemption,” we listed the sure-fire ways to jeopardize your 501(c)(3) tax-exempt status. We’ve already introduced four of them: (1) political activity; (2) too much lobbying; (3) not filing Form 990s; and (yeah, we didn't post them in order) (5) too much private benefit. So what's number four? Actually, you might easily overlook it, too.  It's too much unrelated business income. What Read More