ASAE Supports Lankford, Coons, Walker, Suozzi Bills to Repeal UBIT on Nonprofit Employee Benefits
WASHINGTON – ASAE supports legislation introduced in the past few days by Sens. James Lankford (R-OK) and Chris Coons (D-DE), along with Rep. Mark Walker (R-NC) and Rep. Tom Suozzi (D-NY) to repeal a provision in the 2017 Tax Cuts and Jobs Act that assesses a 21 percent tax on the value of so-called fringe benefits – such as free parking or mass transit assistance – that nonprofits provide to employees.
This tax is proving to be a huge burden for associations and other nonprofit groups, including churches and small charities that have little or no experience dealing with the IRS and insufficient guidance on how to calculate the value of parking and other benefits provided to their employees.
Momentum for repealing the tax on nonprofit employee benefits is growing on both sides of the aisle, and ASAE is hopeful Congress will move repeal legislation this session so that nothing distracts associations and other nonprofits from their core mission.
“Bipartisan support is growing to repeal this onerous tax on nonprofit employee benefits,” said ASAE President and CEO John Graham, FASAE, CAE. “These new tax liabilities create numerous compliance challenges for nonprofits and threaten the financial security and missions of organizations that provide countless services to communities in need and to society as a whole.”
MEDIA CONTACT: Lauren Precker, CAE, lprecker@asaecenter.org, 202-626-2735.
About ASAE
ASAE is a membership organization of more than 44,000 association executives and industry partners representing 7,400 organizations. Its members lead, manage, and work in or partner with organizations in more than a dozen association management disciplines, from executive management to finance to technology. Together, they create a vibrant community that makes the world smarter, safer, and better every day. With support of the ASAE Foundation, a separate nonprofit entity, ASAE is the premier source of learning, knowledge, and future-oriented research for the association and nonprofit profession and provides resources, education, ideas, and advocacy to enhance the power and performance of the association and nonprofit community. Visit ASAE at asaecenter.org.