An appropriations bill passed on December 20 contains a gift for not-for-profit organizations. The so-called Further Consolidated Appropriations Act, 2020 (FCAA) provides a long-awaited solution for not-for-profits that provide certain transportation and parking benefits to their employees. It also contains retirement plan benefits and reinstates other expired tax incentives (the so-called “Extenders”).
Topics: Tax incentive, Craig Klein, Taxes, Congress, Tax Reform, not-for-profit tax, TCJA, parking tax
Rules requiring certain not-for-profits to report the names and addresses of major donors will remain in place for the time being. A recent ruling from the U.S. District Court of Montana set aside and declared unlawful the Revenue Procedure that would have exempted some types of not-for-profits from the requirement to report the names of their major donors in their annual information filings.
Topics: not-for-profit, Taxes, Bill Smith, Donations, donors
The 2017 tax reform law gives donors more of an incentive to make charitable contributions, increasing the deduction allowed for cash contributions to public charities from 50 to 60 percent of adjusted gross income. Substantiating that deduction, however, may be more challenging due to recently finalized IRS regulations.
Topics: not-for-profit, Taxes, Bill Smith, Tax Reform, charitable giving, Charitable contribution planning, Charitable Contribution Deductions, Nate Smith
Not-for-profit organizations will face some critical challenges as the new tax law begins to take effect. The Tax Cuts and Jobs Act (TCJA) had to be paid for in order to be passed, and a result, new taxes were added to offset the costs of the 40 percent reduction in corporate tax rates and 20 percent deduction to owners of pass-through entities.
Topics: Amy O’Loughlin, executive compensation, Craig Klein, Taxes, Congress, estate tax, Tax Reform, House of Representatives, senate, Charitable contribution planning, not-for-profit tax
Congress took its first steps toward tax reform when both the House and the Senate released versions of their changes to the tax code. The House passed its version of the Tax Cuts and Jobs Act, while the Senate Finance Committee approved its version of a tax reform bill on November 16. Provisions vary significantly between the House and the Senate versions of the tax reform plan, but they share one element in common: they both have provisions that will affect not-for-profit organizations.
Topics: executive compensation, Craig Klein, Taxes, Congress, estate tax, Tax Reform, House of Representatives, senate, Charitable contribution planning, not-for-profit tax