Philanthropy Responds to Hurricane Ida
Author: Southeastern Council of Foundations
Hurricane Ida made landfall on August 29 as the second-most intense hurricane to strike Louisiana, behind only Hurricane Katrina in 2005. The storm has caused multiple deaths, left millions without power and caused at least $15 billion in damage in Louisiana alone.
A number of SECF members have responded by either establishing relief funds that are accepting donations or making grants of their own. Follow the links below to learn more.
SECF Members Supporting Relief & Recovery
SECF co-sponsored a webinar for funders earlier today hosted by the Center for Disaster Philanthropy. A recording of the webinar will be posted here when it is available.
Reading Between the Lines: Transportation Benefits After Tax Reform
Author: Sandra Swirski & Sara Barba
Following the passage of the 2017 tax reform bill, nonprofits are re-evaluating how they determine their unrelated business taxable income (UBTI) tax, specifically in regard to transportation benefits. This week, we’ll dive into what the new transportation benefits provision could mean for your organization and your grantees, as well as what’s being done in Washington to help provide guidance.
Transportation Benefits Are Now Taxable
The 2017 tax reform bill made substantial changes to how transportation benefits are treated. Congress wanted all parking and transportation costs to be paid with after-tax dollars, which was fairly easy to apply to for-profit companies and their employees. For nonprofits, however, Congress thought that by simply applying UBIT of 21 percent on any employer-provided transportation benefit would effectively push employers to stop offering the benefit, and employees would just pay for transportation with after tax dollars.
Likely unforeseen was that this UBIT assessment will have a significant impact on charitable organizations’ bottom lines. This will increase the UBIT owed by many organizations and will lead many nonprofits to pay UBIT for the first time.