We recently attended the UT Nonprofit Conference and gained some really useful information about what to expect for the nonprofit industry over the next few years. Reasonable compensation will continue to be a top priority, but watch for potentially stricter rules for sponsorships and unrelated business income in the near future. Proposals are being considered to treat sponsorships with exclusivity agreements as advertising and to treat each unrelated business activity separately when figuring tax due instead of the currently allowed method of combining most gains and losses. The IRS is streamlining processes and ramping up to make sure all nonprofits deserve their exempt status.
February 1, 2015