Exempt organizations have a lot of digesting and analysis to do when it comes to tax reform. You’ll need to fully understand both the direct and indirect impacts of the provisions as well as how to prepare — quickly, in many cases — to minimize (or amplify) the impact.
Is the religious housing allowance constitutional or not? For the second time in the last four years, however, Wisconsin federal district court Judge Barbara Crabb has ruled the latter clergy-owned housing allowance unconstitutional, raising enormous religious liberty ramifications as well as extremely significant potential financial implications for many religious institutions. The ruling has been stayed for now, but the battle lines are well marked and controversy surrounding the issue surely will continue. What’s different between Judge Crabb’s two rulings, and what can religious organizations expect next?
Have you ever wondered why charities enjoy special tax exemption privileges? Or on a deeper level, how the word “charity” came to be defined by the IRS, for Section 501(c)(3) purposes? This article provides a short historical primer on the evolution of the term “charity,” special aspects for exempt religious organizations, and related tax theories in brief.