Posted: January 03, 2018

Free Webinar: How the New Tax Law Impacts Charitable Nonprofits

The federal Tax Cuts and Jobs Act, enacted just days before the New Year, contains sweeping changes in tax law. A number of the changes create uncertainty about compliance for nonprofits. There may also be challenges and certain threats as states think about their own tax laws and spending plans. These changes will impact your nonprofit's ability to carry out your mission. You won't want to miss this important webinar happening Thursday, January 11 at 12:00 p.m. Register today!

A recording of this webinar will be provided to anyone who registers. We encourage people who have scheduling conflicts to sign up. 

Posted: December 18, 2017

Congress to Vote on Tax Reform. Action Needed

The tax bill that the House and Senate will vote on in the next few days will hurt the work of nonprofits and the people we all serve. It favors special interests and the wealthy over the needs of individuals and communities. It prioritizes the panacea of tax cuts over the promise of real reform. It ignores the clearly articulated concerns of charitable and philanthropic organizations about the adverse consequences of many provisions. With very few exceptions, the bill that came out of the conference committee will harm the ability of charitable nonprofits and foundations to address needs in communities and advance their missions. Read more.

Posted: December 15, 2017

Great News! Johnson Amendment to Remain Intact in Final Tax Plan

Last night, a dangerous provision to politicize 501(c)(3) nonprofits was removed from the final version of the tax reform plan that leaders in Congress are negotiating. This is great news for all charitable nonprofits, foundations, and churches! Your phone calls and tweets on this issue made it clear how unpopular and problematic this change would be.

Congressional leaders hope to finalize the tax reform plan today so the House and Senate can vote on it next week. Even without the Johnson Amendment change, both the House and Senate tax plans include a variety of tax changes that are problematic for nonprofits (plus a few small changes that might benefit nonprofits). See North Carolina Center for Nonprofit's revised Comparison of Nonprofit Provisions in Congressional Tax Reform Plans. Significantly, both plans nearly double the standard deduction, meaning that only about 5% of taxpayers would itemize their taxes (both plans). The latest estimates suggest this will reduce charitable giving by between $12 billion and $20 billion per year and lead to the loss of 220,000 or more nonprofit jobs nationally.

Oregon Sen. Ron Wyden played a key role in keeping the Johnson Amendment intact. "I will continue to fight all attempts to eliminate this critical provision that keeps the sanctity of our religious institutions intact, prevents the flow of dark money in politics, and keeps taxpayer dollars from advancing special interest biddings," Mr. Wyden said in a statement late Thursday, December 14. Thank you Sen. Ron Wyden! More here.

Posted: November 13, 2017

Federal Tax Reform Update

Last week, the U.S. House and Senate both released tax plans that have varied effects on nonprofits. The U.S. House Plan Tax Cuts and Jobs Act (H.R.1) weakens the Johnson Amendment, would reduce charitable donations and limits nonprofit financing options. The U.S. Senate released its own tax reform plan, also known as the Tax Cuts and Jobs Act that would also change many nonprofit tax laws. While the Senate version is an improvement over the House plan, because it makes no changes to the Johnson Amendment and preserves private activity bonds, there are other key changes that should be of concern for nonprofits in the Senate tax reform package. NAO, working with our counterpart organization in North Carolina, is able to issue you this side-by-side comparison of the two tax plans and the issues of concern for nonprofits.

Across the board, charitable nonprofits will get a bad deal if these plans go forward without modification. Please read NAO's more detailed policy alert here and Take Action!