Trump Administration Signals Changing Standards for Tax-Exempts

Tax-exempt organizations are closely watching the Trump administration to see if it makes good on its intention to alter standards around claiming tax-free status. The IRS gave a green light to churches speaking about political campaigns and candidates without losing their tax-exempt status, while President Donald Trump publicly threatened Harvard University's tax status because of allegations of antisemitism on campus. Treasury also is considering a change to IRS policies to allow the revocation of tax-exempt status for colleges that consider race in student admissions. Nonprofits already are changing their internal policies to adhere to the administration's moves. Some universities earlier this year slashed progressive policies and scrubbed references to diversity, equity, and inclusion from their websites to avoid a clash with Trump. Churches likely will push the bounds of what type of political speech is allowed, setting up a fight about whether places of worship can endorse or raise money for political candidates, tax professionals said. Phil Hackney, a University of Pittsburgh School of Law professor and former IRS lawyer, breaks down what these changes mean for nonprofits in this week's episode of Talking Tax. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.