article thumbnail

How TIFs Impact Racial and Economic Justice at the Local Level

NonProfit Quarterly

Image credit: Sidral Mundet on Unsplash In Chicago, in 2023, there were 124 active tax increment financing (TIF) districts, which removed over $1.2 When it comes to racial and economic justice and government taxation, federal policy tends to get the most attention. However, state and local taxation are far more damaging.

Taxation 104
article thumbnail

How Nonprofits Can Navigate Political Engagement and Maintain Public Trust

NonProfit Quarterly

The lawsuit challenges the constitutionality of the Johnson Amendment—the provision in the code that prohibits 501c3 organizations from engaging in partisan electoral and political activities. This requires a clear understanding of the legal boundaries that define what 501c3 organizations can and cannot do in political activity.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Understanding Unrelated Business Income in Nonprofits

The Charity CFO

It’s true that due to their uniquely valuable societal contributions, such as charitable actions or educational priorities, nonprofits receive tax exemption for income from activities substantially related to their primary purpose. . The activity is not substantially related to furthering the organization’s exempt, charitable purpose. .

article thumbnail

The Differences Between a 501(c)(3), 501(c)(4) and Other Tax Exemptions

NonProfit Hub

Lobbying, propaganda or other legislative activity must be kept insubstantial, which is generally interpreted as 10-20 percent of an organization’s activities. It can engage in some political activity as long as that activity is not the primary purpose, however, those expenses might be subject to taxation.

article thumbnail

2023 Legislative Session: A Recap

MNA Association

There were remarkable and numerous attempts to make litigation a non-charitable activity which would then be taxed. Like SB524 , SB557 would have made litigation expenses for nonprofits a non-charitable activity, subject to taxation. This will come up again. Sadly, we saw more of this in 2023.

article thumbnail

Looking for Tax Money in All the Wrong Places: Structural Racism at the IRS

NonProfit Quarterly

These provisions reinforce systemic racism and discrimination that have actively prevented Black people and other people of color from obtaining things like home and business loans—or benefitting from programs like the GI Bill that helped White people acquire homes, businesses, and land.

Taxation 116
article thumbnail

Civil Society Undermined by Conflict, Disinformation, and Repression of Protest

NonProfit Quarterly

Areas for advocacy could include progressive taxation, such as windfall and wealth taxes, social protection floors, universal basic incomes, union recognition and more effective business regulation” (33).