Press Room

Minnesota’s nonprofits are part of strong, thriving communities so it is important that our tax policy create strong partnerships with government. However, changes in federal laws are creating confusion and increasing unrelated business income tax (UBIT) for nonprofits, which is disrupting this partnership.

This past June, Minnesota Council of Nonprofits celebrated Pride week with gusto. It included chalk-art, rainbow cupcakes, and decorating pictures with glitter and inspirational quotes of Freddie Mercury, Audre Lorde, Harvey Milk and many others. Not only was it a great time to celebrate with each other, it was also a moment to reflect on history and the intersectionality of oppression and liberation.

Nonprofits are beginning to plan for their year-end giving campaigns, and a looming question is: whether federal tax changes will impact their total giving this year. The best answer to this question is we don’t know and will most likely will not know the true impact for years.

On July 16, the Internal Revenue Service (IRS) and Department of Treasury announced that the IRS will no longer require certain tax exempt organizations to disclose donor information in their annual tax filing. It is important to highlight that this new guidance does not affect 501(c)(3) nonprofit organizations.