The U.S. Supreme Court ruled unanimously that Wisconsin’s denial of a tax exemption for Catholic Charities was “textbook” discrimination that violated the First Amendment. The state had contended Catholic Charities did not prioritize “typical” religious activities, and ECFA had submitted a brief warning against the constitutional dangers of such subjective state religiosity tests.

Swift-moving tax legislation is receiving mixed reviews from the charitable sector. ECFA welcomes the return of a nonitemizer charitable deduction, but other provisions could have significant negative effects for ministries. Not the least of these is the revival of the infamous “nonprofit parking tax.” 

Recently introduced legislation would clarify that churches and ministries are not subject to regulations tied to federal financial assistance simply based on their tax-exempt status.

U.S. Supreme Court justices appeared concerned with Wisconsin’s denial of a tax exemption to Catholic Charites based on the state’s reasoning that the nonprofit did not prioritize “typical” religious activities and, therefore, was “not operated primarily for religious purposes.”

Senators re-introduced a bipartisan ECFA-supported bill allowing pastors who previously opted out of the Social Security system a time-limited opportunity to opt back in.

ECFA recently submitted a legal brief to the U.S. Supreme Court explaining the constitutional dangers of government officials attempting to determine when a ministry’s activities are “sufficiently religious.”

As tax-filing season begins—and a “Super Bowl” for tax legislation appears imminent on Capitol Hill—legislators are reintroducing the bipartisan Charitable Act to restore a charitable deduction for non-itemizing taxpayers.

ECFA rolled out resources in 2024 for those evaluating their fundraising strategies, and we continue to advocate for charitable giving in this year’s tax law “Super Bowl” in Congress.

As the “Super Bowl of Tax” approaches, a bipartisan pair of legislators re-introduced an ECFA-supported bill that would allow pastors who previously opted out of the Social Security system a time-limited opportunity to opt back in.

The IRS recently warned taxpayers to beware of fraudulent and abusive “Charitable LLC” tax schemes.