Skip to Content

Tax reform tosses nonprofits $1M quandary

February 21, 2018 Article 4 min read
Michael Krucker
Some nonprofit hospitals and universities paying executives more than $1 million face hefty tax penalties. Those looking to avoid these excise taxes have a few alternatives. Read more at NonProfitPro.

Close up of a tax document being filled out by a person. The recent reform of the U.S. tax code has been lauded in many circles, but it has left some nonprofits reeling and facing potentially large excise taxes.

For tax years beginning on or after Jan. 1, tax-exempt organizations face a 21 percent excise tax on executive compensation that is above $1 million, prompting intense chatter among some nonprofits worried about hefty tax bills.

Related Thinking

Business professionals sitting at a table discussing reducing benefit plan risk.
May 2, 2023

Safe and secure: Reducing benefit plan risk and fulfilling fiduciary responsibility

Webinar 1 hour watch
Businessperson working at home using a laptop computer at a kitchen table.
November 11, 2022

Is your business’s pension plan costing you more than it’s worth?

Article 5 min read
Business professional leaning against a desk while using their cell phone.
June 29, 2021

Could a cash balance plan reduce taxes and improve your retirement?

Article 2 min read