It was in a paragraph somewhere...
One of those "little things" in the sweeping 2017 Tax Reform Act was a new 21% "Unrelated Business Income Tax" (UBIT) on charitable nonprofits on "Parking Benefits", designed to somehow "maintain parity" for the repeal of such tax deduction for for-profit companies.
What Parking Benefits?
Does your organization provide parking for your employees? Perhaps some spaces in a garage or parking lot? Or perhaps you provide bus passes or Uber/Lyft credits for your employees? For-profit companies used to be able to write such expenses off on their taxes, while nonprofits were already exempt. When Congress repealed that deduction, they decided that it was "only fair" to make nonprofits pay an extra tax, where there was none before. Taxes for 2018 are due on April 15, 2019.
We don't think that's fair at all.
Why should our donors' contributions go to pay an income tax on an expense, and one that for-profit businesses don't have to pay? Together SC's position on this is:
“Charitable nonprofit organizations provide services and social good for all South Carolinians, and in recognition, are exempted from income and other taxes. These exemptions allow the contributions of citizens to be used completely to further the missions of the causes they care about, and not to have a portion of their contributions be diverted by taxes.”
Most of Congress Agrees!
Repealing this tax isn't very controversial, but it's pretty low on Congress' priorities right now. A national coalition of nonprofits is asking House and Senate Tax leaders to make repealing this tax a priority, through this sign on letter. Will you sign on behalf of your organization before April 3?
Learn more about this new tax on nonprofits.