YoungAssociates serves nonprofits in a variety of fields, including arts, history, and medicine

Business taxes vary for C and S corporations

Bush-era tax cuts were allowed to expire for higher-income taxpayers without distinguishing between active business and passive investment income, impacting pass-through entities. Those entities that are organized as sole proprietorships, partnerships or S corporations now face a competitive disadvantage by way of a higher marginal tax rate on their business income than their C corporation competitors. For example, a C corporation that earns $1 million pays almost $350,000 in current taxes. If the same business is organized as a partnership of individuals, the current tax on the same amount of business income may be as high as $444,000, a 27% difference. If tax reform were to reduce corporate rates to 28%, that difference would balloon to 59%. According to IRS statistics, for every one C corporation, more than four businesses are now organized as either partnerships or S corporations



Part of a series: Keep in Mind, tips from the president of YoungAssociates, micro-sized nuggets to startle, energize, and boost your thinking in regard to development. If you enjoy this information and don't want to miss future articles, you can subscribe to receive our fundraising articles via email.

Dissatisfaction is key to success (KIM #11)

A fundraising campaign does not exist in an equal opportunities utopia and the health of the nonprofit world depends on that. When a capital campaign is formed without outside analysis, development staff remain satisfied with their processes. Capital campaigns compared with annual funds require breakthroughs and change. With counsel as coach, campaigns focus on strategy and motivation; they foster an attitude in the staff of never being quite satisfied, never being quite happy with gift results—without a certain level of dissatisfaction, annual funds always leave money on the table.



Part of a series: Keep in Mind, tips from the president of YoungAssociates, micro-sized nuggets to startle, energize, and boost your thinking in regard to development. If you enjoy this information and don't want to miss future articles, you can subscribe to receive our fundraising articles via email.

Is your fundraising tapping into people’s need for purpose? (KIM #10)

No matter how much we believe the world has changed, human beings want to be part of something larger than themselves.

When thinking about mission statements and program development remember that people crave moral purpose and social solidarity. At YoungAssociates, we know that if we overlook this, fundraising will falter, perhaps not at the beginning, but always after public declaration of the campaign.



Part of a series: Keep in Mind, tips from the president of YoungAssociates, micro-sized nuggets to startle, energize, and boost your thinking in regard to development. If you enjoy this information and don't want to miss future articles, you can subscribe to receive our fundraising articles via email.