Inflation adjustments for 2025 impacting exempt organizations
The IRS announced the annual inflation adjustments applicable to tax years beginning in 2025 (typically, returns filed in 2026) for more than 60 tax provisions, including those affecting exempt organizations. Amounts increased slightly for 2025. Of interest to exempt organizations are the following items:
Inflation adjusted item
|
2025 amount
|
2024 amount
|
Agricultural or horticultural organizations:
Dues paid by members excluded from unrelated business income
|
$207
|
$201
|
Low cost articles:
Cost of items for purposes of determining unrelated trade or business
|
$13.60
|
$13.20
|
Insubstantial benefits:
Value of benefits received by a donor without reducing the value of the charitable contribution deduction
|
$13.60, $68, and $136
|
$13.20, $66, and $132
|
Nondeductible lobbying expenditures:
Dues limitation to except an exempt organization from the proxy tax reporting requirement
|
$143 or less
|
$140 or less
|
Failure to file Form 990-T:
Minimum tax that applies for failure to file within 60 days of the due date is the lesser of 100 percent of the amount required to be shown as tax or the following amount
|
$525
|
$510
|
Failure to file Form 990, Form 990-EZ, or Form 990-PF:
- Large organization threshold
- Daily delinquency penalty for large organizations
Not to exceed
- Daily delinquency penalty for all others
Not to exceed the lesser of 5 percent of gross receipts or the following amount
|
$1,309,500
$130
$65,000
$25
$13,000
|
$1,274,000
$125
$63,500
$25
$12,500
|
As employers, exempt organizations may also be interested in the following items:
Inflation adjusted item
|
2025 amount
|
2024 amount
|
Flexible spending accounts (FSAs):
- Pre-tax deduction annual limit
- Maximum carryover amount (if permitted by plan)
|
$3,300
$660
|
$3,200
$640
|
Qualified transportation fringe benefits:
Pre-tax or excluded monthly limit
|
$325
|
$315
|
