Good News for Nonprofits Affected by the Nonprofit Parking Tax

As part of a large spending package to avoid a government shutdown, Congress passed legislation repealing the infamous “Nonprofit Parking Tax” – an income tax on the cost of parking provided by nonprofit organizations to their employees performing exempt charitable, religious, and educational activities. The repeal of the Nonprofit Parking Tax is retroactive – the legislation literally states that the effective date of repeal is as if the tax was never in the original law. The bill was signed by President Trump on December 20, 2019.

Turkeys and Taxes: What is "Quid Pro Quo"?

Recent presidential impeachment hearings have raised the Latin phrase quid pro quo to national attention. What does it mean? The literal meaning of quid pro quo is “something for something.” Put differently, a quid pro quo exists when something is given in exchange for something else. In Thanksgiving parlance, quid pro quo may mean a person better bring a dish (or two) to share at the holiday table! For nonprofits, this term applies to charitable contributions and payments for goods and services, with critical distinctions affecting tax deductibility, tax receipting, and potential “private benefit” tax issues. This article provides a helpful primer on these important tax issues with a special holiday spin.

Trade Association Basics

“Got milk?” This phrase may instantly bring to mind a famous campaign to promote milk consumption. This PR campaign was promoted by a trade association dedicated to—what else—selling milk! How could tax-exempt status belong to a group of businesses? The answer is through Section 501(c)(6) of the Internal Revenue Code, which provides exemption for “business leagues”—commonly known as trade associations—as well as chambers of commerce, real estate boards, boards of trade, and sports leagues. Here are some basics about trade associations.