In this op-ed, the National Council of Nonprofits shares its analysis of what is at risk for nonprofits in the current House Tax Bill. These are some of the things your board and staff should speak out about as they advocate on behalf of your institution.
As the threat/opportunity of federal tax “reform” looms, most nonprofits will likely opt out of participation in framing the real values questions in front of us. Some may use the need to remain apolitical as an excuse. But, as Patrick Lester reminds us in this article, no one is requiring that of you—in fact, doing so may be an abdication of responsibility.
While the UK has declined to stop taxing feminine hygiene products, it did promise to pass some of the tax proceeds along to women’s groups. But its first round of grants includes a big one to an anti-abortion organization.
What’s fair in the taxation of nonprofits by local municipalities? NPQ has covered the issue of payments in lieu of taxes issue extensively; it mostly affects universities and hospitals—the eds and the meds. But there’s another realm of charges—fees and taxes—that hits smaller and larger operations alike. For more background on this, read “Death by a Thousand City Fees.”
Recently in Alaska, the Kenai Peninsula Borough Assembly passed a set of tax reforms that included several new sources of revenue. One of them removed the exemption from collecting sales tax by nonprofits operating regular storefronts, like the Salvation Army.