Many ministries, including NRB, have expressed concern with a provision included in last year’s tax reform package that could cause heartburn for nonprofit organizations. The Evangelical Council for Financial Accountability (ECFA) has determined that newly added Section 512(a)(7) of the tax code will impose a 21 percent “unrelated business income tax” (UBIT) on employee parking and transportation benefits regardless of whether the group actually conducts such business activities.
To help ministries stay up to date on this matter, ECFA has centralized information and news about it on one webpage. Among the materials available is a petition that in part declares, “The idea that tax‐exempt organizations should be taxed on parking they provide to their employees is highly inappropriate and must be stopped.” The statement calls for congressional or regulatory action to nullify the new tax.
Learn more from ECFA on this matter here.
By Aaron Mercer, Vice President of Government Relations
Published: August 24, 2018