The 2017 Tax Cuts and Jobs Act made two changes to the tax code regarding the unrelated business income tax (UBIT) that negatively affect foundations and other tax-exempt organizations. The first is a requirement that tax-exempt organizations pay a new tax on fringe benefits offered to their employees, such as parking and transportation benefits. Nonprofits have never been subject to such a tax before.
Research by the Urban Institute and Independent Sector estimates that the new tax on fringe benefits will, on average, cost nonprofits $12,000 per year.
Click here to read more from the United Philanthropy Forum.