The recently enacted federal tax reform legislation, known as "The One Big Beautiful Bill," introduces significant changes affecting nonprofit organizations, private foundations, and higher education institutions. This analysis examines key provisions including expanded executive compensation excise taxes, tiered foundation and endowment taxes, modified unrelated business income tax requirements, and charitable giving changes. While the legislation creates a universal charitable deduction benefiting smaller donors, it simultaneously imposes substantial new tax burdens on larger nonprofits through increased rates on foundations with assets over $50 million and universities with significant endowments. The combined impact is estimated to reduce nonprofit sector resources by approximately $81 billion over ten years, requiring organizations to reassess financial strategies and potentially adjust service delivery models

NOTE: If you have already created an account, please be sure to log in.