When the One Big Beautiful Bill Act (OBBBA) became law on July 4, 2025, it brought major updates to tax policy and federal spending. The changes affect everything from how individuals claim deductions to how corporations make gifts, along with adjustments to several major federal programs. For nonprofits, these changes will likely influence donor behavior, and in some cases, the amount of help people seek from community organizations.
By ISHAAN ANAND
On July 4th, 2025, President Trump signed The One Big Beautiful Bill (OBBB) into law, which passed Congress through the reconciliation process. The legislation includes several tax changes and updates that build upon the Tax Cuts and Jobs Act of 2017, which was passed in Trump’s first term. The major updates include changes to the R&D Tax Credit, expansion of the Section 199a deduction, return of 100% bonus depreciation, increase in the SALT Cap, permanent extension of the New Markets Tax Credit, and much more.
The Charitable Registration & Investigation (CRI) Section of the New Jersey Division of Consumer Affairs (DCA) is the state department that regulates the fundraising activities of many charitable nonprofit organizations and others doing business in the state of New Jersey, through enforcement of the provisions of the Charitable Registration & Investigation Act (CRI Act).
In November 2024, the IRS announced that interest rates will decrease for the first quarter of 2025, which begins January 1, 2025. The changes outlined in IR-2024-290 outline all the relevant interest rate changes including various reductions.
By Robert Gaffney
Fraud is a persistent threat every organization must face. Although most are honest and do not commit illegal activities, all it takes is one bad actor to have a significant and negative impact. The risk is especially high for nonprofit organizations that have limited resources to implement the training and controls necessary for optimal risk management. According to the Association of Certified Fraud Examiners’ (ACFE) Occupational Fraud Report 2022: Report to the Nations, there were 188 cases of nonprofit fraud reported with a median loss of $60,000 during the period examined. It was also reported that religious, charitable, and social service organizations experienced a median loss of $78,000.
At the end of December, President Biden signed the Consolidated Appropriations Act of 2023 into law. While the primary purpose of the legislation was to allocate federal funding for the coming year, it did contain several other parcels of legislation within. One of these was the Securing a Strong Retirement Act of 2021, more commonly referred to as the SECURE Act 2.0. The long-awaited legislation aimed at new retirement savings reform is based on many of the changes initially proposed both in the House and Senate. These include changes to plan design, modified RMD rules, matching student loan payments, and expanded eligibility for part-time employees.
In September 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-07, Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets. The new standard is now in effect for annual periods beginning after June 15, 2021, and interim periods within fiscal years beginning after June 15, 2022.
On January 28, 2022, New Jersey Governor Phil Murphy signed bills S844 and S2533, raising the threshold for nonprofit audits from $500,000 to $1M, effective immediately. Therefore, New Jersey nonprofits whose gross receipts exceed $500,000, but do not exceed $1M, no longer need an audit.
This post updates previously published content regarding legislation that would raise the threshold for nonprofit audits from $500,000 to $1M. Assembly Bill 4635 (AB4635) passed the New Jersey legislature on December 20, 2021, and now heads to Governor Murphy for further action.
The Employee Retention Credit (ERC) is one of a handful of federal programs aimed at helping organizations and businesses maintain healthy operations through the ongoing COVID-19 pandemic. For nonprofits, programs like the ERC and the Paycheck Protection Program (PPP) can be the difference between providing services and having to shutter their doors.
