Key Wins for Nonprofits:
- Board Stipend Provision:
Massachusetts nonprofits can now pay board members up to $500 in stipends without losing civil liability protections, aligning the state law with the Federal Volunteer Protection Act. This change aims to enhance board diversity by making it easier for individuals who may face financial barriers to participate in nonprofit governance. - Raised Financial Statement Thresholds:
The economic development bill raised the thresholds for nonprofit financial reporting. Organizations with more than $500,000 in gross revenue must now have their financial statements reviewed by a certified public accountant (CPA). Audits are required for those with revenues over $1 million. This adjustment will reduce the financial burden on smaller nonprofits.
Looking Ahead: 2025-2026 Legislative Session
- Nonprofits are encouraged to share their concerns or issues with MNN’s Jess Seney for consideration in the next session.
Federal Issues:
- HR9495 (“Stop Terror-Financing and Tax Penalties on Americans Hostages Act”): Passed by the House, this bill could empower the Treasury Secretary to revoke tax-exempt status from nonprofits alleged to support terrorism. While unlikely to pass in the Senate, MNN will continue monitoring it.
- HR10203 (Charitable Giving Relief): This bill, though not likely to pass this session, includes provisions that would support nonprofits by:
- Creating an uncapped non-itemizer tax deduction for donations through 2025.
- Increasing itemizer giving limits to 100% of adjusted gross income (from 60%).
