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Speak Up Today to Repeal New Tax on Nonprofits

The comprehensive tax reform provisions signed into law last December include a new requirement for nonprofits to pay Unrelated Business Income Tax (UBIT) equal to 21% of the value of commuting and parking benefits provided to employees. The League of American Orchestras has partnered with the broader nonprofit sector to ask for clarification of the new rules, delayed implementation, and repeal of this unprecedented tax on nonprofit expenses. While no guidance has been issued by the Internal Revenue Service to clarify which benefits are subject to the tax and how to value certain benefits, the new requirements officially took effect beginning on January 1, 2018.

A tax package now under consideration by Congress includes a provision to repeal the new tax on nonprofits. You can take action today by contacting your elected officials to ask them to:

  1. Weigh in with the Treasury Department on your behalf, and ask for a delay in implementing the new tax.
  2. Take legislative action to repeal the new tax on nonprofit parking and transportation employee benefits.

The Johnson Amendment is at Risk Again - Take Action!

The Johnson Amendment is at risk again. This Amendment (passed in 1954) forbids nonprofits from endorsing candidates. We can of course take positions on ballot measures and legislation, but the Johnson Amendment protects us from being pressured to support a particular candidate for Congress, Board of Supervisors, or any other elected office.

Imagine if a major donor asked your organization to publicly support his choice for the Board of Supervisors. Or if a foundation president sent a letter to grantees asking them to publicly oppose the same candidate. The Johnson Amendment protects us from this kind of pressure.

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AB 2252 Will Help Nonprofits Obtain State Grants

Earlier this year CalNonprofits told us about Assembly Bill 2252, to create a searchable database of state grants —from all state agencies— on a single portal accessible to the public.

The bill also would enable nonprofits to submit state funding applications electronically. AB 2252 is sponsored by CalNonprofits and authored by Assemblymember Monique Limón, who is also Chair of the Assembly Select Committee on the Nonprofit Sector.

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