Key Tax Reform Issues for Nonprofit Membership Organizations

In this article, Robert Logan discusses the new Tax Cuts and Jobs Act recently signed by President Trump. He begins by explaining that the new act contains features that adversely affect many nonprofit organizations. He first discusses how the act now requires separate computation of unrelated business income for multiple businesses. The act eliminates the ability of nonprofits to offset income from one unrelated business with the losses from another. He then discusses the new tax on nonprofits that compensate their executives excessively. The act imposes a 21% excise tax on the sum of annual remuneration above $1 million, plus certain separation payments that exceed three times an average base salary measure. Finally, he discusses how nonprofits must now include fringe benefits from unrelated business income. To learn more about the adverse effects of the new Tax Cuts and Jobs Act, click here:  https://www.pillsburylaw.com/en/news-and-insights/key-tax-reform-issues-for-nonprofit-membership-organizations-associations.html

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