Hidden in the weeds of the federal tax law enacted in December are two new taxes on nonprofits’ “unrelated business income” that are surprising just about everyone. One provision requires tax-exempt employers to pay a 21 percent income tax on its expenses for employee transportation benefits such as transit passes and parking. Another tax change requires nonprofits with business income to pay the tax on each separate “trade or business” and prohibits the blending of profits and losses across lines of business. Both technically became effective on January 1, 2018, with quarterly tax payments due on April 15 for many nonprofits. Unfortunately for all […]
Read the April 2018 Connector here.
With the Washington State Legislature adjourned until 2019, all eyes are now on the U.S. Congress as it works to close out the next few months before its summer recess. Below are key issues for your organization to be aware of: Comment to the IRS on New UBIT Charge for Employee Transit Benefits One result of the Tax Cuts and Jobs Act passes by Congress is that employee transportation benefits are now considered as Unrelated Business Income that is subject to taxes paid by the nonprofit organization or the employee. As the National Council of Nonprofits illustrates: So, your nonprofit […]
As we strive to do our best work, there is so much to learn. I encourage you to take time for learning and reflection this month, and I’d like to share some new research that is available to aid our learning and advance our work. A National Imperative: Joining Forces to Strengthen Human Services in America outlines the importance and social impact of human services community-based organizations. This report affirms the value of human services, cautions that many providers are financially tenuous and at risk due to a number of systemic issues, and speaks to the potential to shift the […]
What happens when a nonprofit is challenged by a much larger corporation? How can an independent, community-funded organization compete with an established for-profit business with more resources? You rally your community, establish strong partnerships, and keep your mission at the center. This happened to KXRW, an independent, volunteer-based, values-driven, community-supported radio station in Vancouver, WA. Susan Galaviz (founder, president, and program manager of KXRW) shares their success story. KXRW was already on-air, excited to celebrate their first birthday, when they got word Bustos Media was awarded an FCC Construction Permit to build a translator in the Portland area on the […]
You are running an event in a community center and want to serve wine. Maybe you are planning a donor reception in a board member’s home and have champagne ready to pop open. Perhaps your local Scout Troop is holding a “Cow Pie Bingo,” and you need to know the rules. Announcing “Liquor, Cannabis, Gambling… and Your Fundraising Event,” a new toolkit produced by Washington Nonprofits in partnership with Wayfind and the Washington State Liquor and Cannabis Board! With support from the Office of the Secretary of State, this resource was designed to help you stay legal at your next […]
Below is a Message from the Survey Team The Pacific Northwest faces a number of natural hazards that can create disasters for our communities. These hazards include both common events such as, storms and flooding, as well as more rare events such as earthquakes and volcanic eruptions. The region’s nonprofit organizations are critical in supporting many communities today, and this need will continue after any disaster event. To learn more about the resilience of the nonprofit sector, researchers at Portland State University are surveying nonprofit organizations to understand the concerns, resources, and actions that they have taken to prepare for […]
The 2020 Census is slated to include a potentially problematic question regarding respondents’ citizenship. We noted in our January letter to Congress that the citizenship question “creates unnecessary fear across the country among immigrant communities and will deeply limit participation by those communities,” which will lead to an undercount of already hard-to-count populations. If there is a depressed response to the 2020 Census, there will be serious ramifications for how federal resources are distributed to communities across Washington State for programs implemented by nonprofits or used by the people we serve. As our friends at Win/Win Network explain: “The importance of an accurate Census count cannot be […]