Ask the Expert: Taxation of Compensation for NGOs and ‘Related’ Entities

Venable partner Bob Waldman will give a presentation to the Association for Corporate Citizenship Professionals regarding taxation of compensation for NGOs and related entities.  The directors and officers of most company foundations consist of executives of the related company.  Recent tax legislation imposed a 21% tax on compensation in excess of $1 million paid by nonprofit organizations and, more importantly, by their “related organizations.”  This raised a serious question of whether highly compensated company executives who also serve volunteer roles with the company foundation were now subject to this tax.  Recently issued regulations provide clarification on the imposition of this tax. This session will review the safe harbors for avoiding this excise tax.