By Samantha Ramirez, CPA, Tax Manager
Hidden surprises in the new Tax Cuts and Jobs Act (TCJA)? One worthy of discussion is the “parking tax”. While this provision applies to all businesses, for tax-exempt organizations (TEOs) it creates an extra filing requirement. For the first time in 2019, TEOs may be required to file a Form 990-T and pay unrelated business income tax.
The TCJA added IRC Section 274 to deny employers a deduction for certain qualified transportation benefits paid after December 31, 2017. These benefits include the expense for employer-provided parking. In an attempt to mitigate disparity between for-profit and not-for-profit entities, the TCJA added IRC Section 512(a)(7), which requires tax-exempt organizations to increase unrelated business income (UBI) by the transportation benefits disallowed as a deduction for taxable entities. For those organizations that pay these benefits, the organization will be subject to a flat 21% income tax on any disallowed parking expense. (more…)
According to the Charitable Giving Report, online giving reached a record high last year, representing 8.5 percent of overall fundraising revenue. Since 2016, online giving has grown 17 percent with no signs of slowing.
One reason is Facebook. If you’ve been on Facebook recently, you’ve probably noticed requests to support a cause on behalf of a friend’s birthday. Launched in August 2017, the Facebook birthday fundraising feature raised more than $300 million in its first year, and Facebook now waives its fee on every birthday-related donation. (more…)
Your board is critical to the success of your nonprofit organization. Board members must meet certain standards of conduct, including governing the nonprofit according to its bylaws, exercising reasonable care when making decisions, and assuming certain responsibilities—and liabilities—related to their roles as directors.
With these responsibilities come risks, and many board members may not even know the extent of their personal exposure. Protecting your board members—and attracting new ones—often requires an insurance policy designed specifically for this purpose. (more…)