Nonprofits

Managing a successful nonprofit organization requires passion, hard work and the desire to serve. While there are many similarities between for-profit and nonprofit organizations, there are also important differences. For example, managing volunteers, refining programs to deliver maximum value, identifying new services based on member or community needs are challenges unique to nonprofits. As an organization grows and evolves, it’s important to have access to a wide variety of resources and tools to allow you to navigate the process to a successful outcome. The good news for Atlanta area nonprofits is there are several associations and foundations that offer resources, education and funding opportunities to help nourish and sustain organizations.

In the U.S., charitable organizations are relieved from the burden of paying taxes if they organize themselves as nonprofits in the eyes of the IRS – that is, until they deviate from their charitable missions. When a nonprofit organization carries on a business activity that is unrelated to their mission, the profits they earn from that activity will be taxable. This “unrelated business income tax” (UBIT) may come as a surprise and can place a filing burden on unprepared taxpayers. Below is a list of FAQs to help you learn more about UBIT so that you understand this unique subsection of our tax code.

At the end of 2017, there was a lot of debate and political posturing about how to pass tax reform. Concerns about which individual and business tax incentives should be eliminated, bolstered and changed dominated the media. While it was clear the overall focus was on a broad tax reduction, it was the resolution of specific details that created the challenge. There were many important changes to the tax code including an overall reduction in the tax rate, the introduction of the qualified business income deduction and changes to the meals and entertainment deduction.