Tax-Exempt Organizations and Donors Under OBBBA: Key Provisions, Compliance Risks, and Planning

The OBBBA provides significant changes to the U.S. income tax code impacting nonprofits and donors. The impact on tax-exempt organizations will have serious operational and tax reporting impacts on nonprofit entities and donors. For tax advisers and executives serving exempt organizations, the new law creates significant challenges.

The OBBBA contains provisions directly aimed at exempt organizations, including the expansion of the definition of covered employees, increases in excise taxes for private colleges and universities, changes to charitable contribution deductions, and other items impacting the operations and tax compliance of these organizations and donors.

Listen as our experienced panel provides a critical first look at the implications of OBBBA on nonprofit entities and donors, enabling tax advisers to get a grasp on the impact of the new law on exempt organization clients.

I. Provisions in 2025 tax legislation pertaining directly to tax-exempt organizations and donors

II. UBTI/UBIT calculations and reporting

III. Compensation of "covered employees"

IV. Business and individual provisions that will impact tax-exempt organizations

The panel will discuss these and other key issues:

• How certain excise taxes are applied and calculated under the new law
• Tax reporting requirements under OBBBA
• Impact on compensation of "covered employees"
• Strategies for minimizing UBIT and excise taxes on compensation
• Assessing the likely impact of reduced incentives for individual taxpayers to itemize on exempt orgs reliant on deductible contributions

Learning Objectives

After completing this course, you will be able to:

• Detail the provisions in the new tax law specifically aimed at tax-exempt organizations and donors
• Determine how to calculate UBTI disallowing loss aggregation
• Identify the impact of changes in tax provisions for individuals and business entities on tax-exempt organizations
• Design strategies for minimizing the negative impacts of the new law on tax-exempt organizations

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite:

  Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.

  
  

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).