• President's Message
• Supporting Physician Executives
• Bill Schoenhard, LFACHE, His Story
• Technical Tax Update for All Nonprofits
• Congratulation Announcements
• Become a Fellow
• Sponsorship Opportunities 

Physician executives represent a key membership group for which ACHE is working to provide education and career development programs. Local ACHE chapters are uniquely positioned to engage this important group with relevant resources and opportunities to help them grow as leaders. One chapter, the Georgia Association of Healthcare Executives, formed a physician executive group in 2016 to address the needs of local physician leaders and provide value for them at the local level.

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Wal king through the exhibit hall of the 2018 ACHE Congress on Leadership, I noticed a colleague, Kim M. Garber, MALS, staffing the American Hospital Association's Center for Hospital and Healthcare Administration History booth. Next to the chocolate there was a postcard with the familiar face of our friend, William (Bill) M. Schoenhard, announcing Bill's inclusion into the Oral History Collection. I read Bill's interview word-for-word and found it be a fascinating healthcare history and pertinent refresher of basic leadership principles. If you want to learn more about Bill's contribution, invest time at http://www.aha.org/chhah . Please give a shout out to a great Missourian, Bill Schoenhard. Thank you for your service, sir!

Author: Jennifer M. Vacha, CPA, CGMA - Partner, Brown Smith Wallace, LLP

The Tax Cuts and Jobs Act of 2017 ("TCJA") has numerous provisions that affect taxation for individuals, businesses, and nonprofits; both directly and indirectly. The 2017 Act indicates tax cuts, however, some provisions may actually increase taxes for nonprofits. One provision, which became effective January 1, 2018, falls under the new Internal Revenue Code Section 512(a)(7). This provision imposes Unrelated Business Income Tax (UBIT) on qualified transportation benefits - a cost, not an income stream. 

Technically, the UBI regulations state an activity may be unrelated business income if it is (1) a trade or business, (2) regularly carried on, and (3) not substantially related to furthering the exempt purpose of the organization. The newly imposed corporate tax rate is 21% for UBI for nonprofit corporations. If an organization expects to owe at least $500 in UBIT they must submit quarterly estimated tax payments. Although many nonprofits are unaware of this new provision and have never previously had to file Form 990-T, if an organization's UBI is $1,000 or more Tax Form 990-T must be prepared. Failing to file Form 990-T comes at a cost - the minimum penalty being the smaller of the tax due or $210.  

Prior to the 2017 Tax Act, employers were able to provide certain tax-free qualified transportation fringe benefits for employees. The Act made certain qualified transportation fringe (QTF) benefit expenses paid after 12/31/17 nondeductible for for-profit organizations. Thus, in the spirit of the "for-profit and nonprofit equal footing" theory, Congress implemented this tax for nonprofits.  

Under the new law, UBIT shall be increased by any amount paid or incurred by the organization for any parking facility used in connection with "parking the organization provides to its employees on or near the organization's premises, including commuter parking".

The Notice identifies that organizations have until March 31, 2019 to modify designated reserved employee parking policies and procedures to adjust the impact of the potential tax. However, like all legislation, this entire component of the TCJA could be repealed or modified. Please consult with your tax advisor to understand how this new provision may impact your organization.

• Jennifer M. Bjelich-Houpt, MHA, FACHE
• Jon Vitiello
• Katie Nowak, MSPT, MBA, FACHE
• Bryant McNally, J.D., MPH, FACHE