Home > Policy Alert: New income tax requirements for nonprofits (UBIT)

Policy Alert: New income tax requirements for nonprofits (UBIT)

Thanks to the efforts of the sector and our champions, we’ve made significant progress convincing lawmakers that new income tax requirements for nonprofits – namely, the 21-percent unrelated business income tax (UBIT) on transportation benefits and other expenses – are both nonsensical and counterproductive to our shared purpose: serving the American people. Indeed, the IRS just released guidelines meant to alleviate some of the burden this new law imposes.

However, this new notice is far from adequate – the only responsible solution is to repeal the code from the 2017 tax law impacting the nonprofit sector (as already admitted by the chairman of the House tax-writing committee who put this new tax into law.)

To do away with this burdensome tax on nonprofits, we must contact our U.S. Representatives and Senators NOW – if Congress adjourns for the year without addressing this issue, advocacy efforts must start over from square one in the new year.

Please take a few minutes today to reach out to your Congresspeople in as many ways as possible:

1. Call your Representative and Senators, and tell them:

The new UBIT tax on nonprofits is unfair and burdensome, and must be repealed as part of any bill passing in Congress this year. Nonprofits – including charitable organizations, houses of worship, and foundations – are united in opposition to this tax. Please don’t leave DC this year without repealing this nonsensical income tax on tax-exempt nonprofits, Code Sec 512a7.

To call: Dial the Congressional switchboard at 202-225-3121 and following the automated instructions.

2. Email your Representative and Senators with this message:

The new UBIT tax on nonprofits is unfair and burdensome, and must be repealed as part of any bill passing in Congress this year. Nonprofits – including charitable organizations, houses of worship, and foundations – are united in opposition to this tax. Please repeal this nonsensical income tax on tax-exempt nonprofits before you wrap up your work for the year.

To email: You can email all three of your Congressional officials at once by visiting democracy.io and entering your home address.

3. Tweet your Representative and Senators with this message:

[Your Representative’s Twitter Handle] @SenDavidPerdue @SenatorIsakson Don’t leave DC this year without repealing the #nonprofit transportation tax (Code Sec 512a7). Every dollar spent on this tax is a dollar diverted from our mission of serving your constituents.

To find your Representative’s Twitter handle: Visit the House home page to look up your Representative, follow the link to their web page, and click on the Twitter icon.

In solidarity,

Karen Beavor
President and CEO