The Impact of #UBIT on Nonprofits

July 9, 2019

The Impact of #UBIT on Nonprofits

The 2017 Tax Cuts and Jobs Act created two new sections of the tax code that will divert charitable resources from community needs

The Impact of #UBIT on Nonprofits

The 2017 Tax Cuts and Jobs Act created two new sections of the tax code that will divert charitable resources from community needs.

21%:

Nonprofits are now required to pay 21% federal tax on the cost of employee transportation benefits and to calculate unrelated income streams in a way that increases tax burden.

$12,000:

$12,000 will be diverted annually from each nonprofit’s mission to pay for new tax on transportation benefits

$15,000:

$15,000 will be diverted annually from each nonprofit’s mission to report unrelated income streams separately.

Offset the cost of #UBIT with FNP!

While your organization may not be able to take opt-out of #UBIT, you can still take advantage of State Unemployment Insurance (SUI) exemptions with FNP.

31%:

New 2019 FNP customers saved an average of 31% on their SUI tax costs.

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Get in touch today to request a no-obligation savings evaluation.

Testimonials

NYCON members who use First Nonprofit’s programs enjoy enduring savings and improved efficiency. Our association knows that success, because from the beginning, we achieved the same great benefits. Great savings, seamless technology, and responsive service. NYCON highly recommends First Nonprofit’s remarkable unemployment solutions.

New York Council of Nonprofits, Albany, NY

It has been our sincere pleasure to maintain a strong, vibrant business partnership with First Nonprofit. We greatly admire their strong industry knowledge, technical expertise, constant professionalism, knowledgeable and dedicated staff. They are always extremely responsive, personable and provide us with the necessary guidance and recommendations on a numerous variety of employment scenarios. We are impressed with the accuracy of their employment decisions, integrity of their employees and efficiency of their claim handling. We greatly respect and value the consistent, impressive cost savings from the utilization of their outstanding services.

 

Thresholds, Chicago, IL

Because INCS advocates for the operating conditions that allow charter public schools to provide high quality public education, partnering with First Nonprofit was an easy decision. First Nonprofit’s unemployment programs provide our member schools two operating elements crucial to their ability to provide high quality public education: savings and budget certainty. Capable, committed teachers are the key to student success. By participating in the unemployment insurance savings plan, charter public schools gain peace of mind and are able to invest more money in their teachers.

Illinois Network of Charter Schools

Throughout our membership in the Unemployment Savings Program, First Nonprofit understood our demands, community dynamics, and the importance of seamless services; that allowed us to serve our constituents better.

Hugh Parry, Retired President of Prevent Blindness America