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Tax complications can interfere with your mission, drain your resources and cause complications with funders. Our team will help you confidently navigate the rules and stay current with your tax responsibilities.
Enjoy complete and accurate tax reporting.
Get the most from your tax-exempt structure.
Understand how tax rules apply to your organization.
Impress funders by maintaining compliance.
Make tax strategy an asset to achieving your mission
Wipfli won’t just help you with the paperwork. Our team of experienced nonprofit and tax advisors will make your tax strategy an organizational asset by analyzing funding options, enhancing your structure and giving you the tools to impress funders or regulators.
Explore our specialty tax services
Wipfli’s tax compliance and reporting services can help you achieve complete and accurate reporting to the IRS. Our team can help you with:
- Form 990 and ancillary reporting, including reporting for Form 990-T.
- IRS defense or representation for complex matters.
- State registration and compliance when seeking charitable dollars.
- 501(r) compliance for tax-exempt hospitals.
Wipfli can help you maximize your exempt status with support for applications, structuring multi-entity setup and reinstating tax-exempt status.
Insights and resources
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What potential Form 990 changes could mean to tax-exempt organizations
Tax-exempt organizations may soon face increased reporting requirements on their annual Form 990 filing. On April 23, 2026, the U.S. Department of the Treasury announced plans to revise the Form 990. This would be the first major change to the form in nearly 20 years. The release cited several objectives, including improved transparency, strengthened tax administration and clearer reporting on certain activities. What organizations are most impacted by changes to Form 990 Organizations exempt from tax under Internal Revenue Code section 501(c)(3) would be the most impacted. Particularly those that: Receive government grants Have government contracts Participate in fiscal sponsorship arrangements What’s prompting Form 990 changes? Given the recent increased scrutiny around governmental funding (and ongoing scrutiny of tax-exempt organizations as a whole), it is no surprise that the reporting of governmental funding is on the list of revisions for Form 990. Currently, government grants are reported separately from other types of contributions, gifts and grants on the Form 990 Statement of Revenue. Grants that exceed certain thresholds may also be reported on Form 990 Schedule B (which is submitted to the IRS but is not open for public inspection). There is currently no requirement on Form 990 to show how specific governmental funds are spent. This is among the proposed changes to increase transparency and accountability related to governmental funding. It is worth noting that other government agencies require reporting on the use of government funds, such as the Office of Management and Budget’s Uniform Guidance rules. What are the impacts on fiscal sponsorship arrangements? Fiscal sponsorship arrangements are another area of concern noted by the Treasury Department. Tax-exempt organizations are often approached by individuals or groups who want to conduct a charitable activity but don’t have the means or long-term goals that warrant creating a new tax-exempt organization. Existing organizations may choose to sponsor these activities. While there are many well-intentioned individuals or groups seeking fiscal sponsorship arrangements (and well-intentioned tax-exempt organizations that agree to sponsor them), such arrangements can harbor fraud and abuse if the fiscal sponsor is not actively involved in the activity and the stewardship of the funds. Further, tax-exempt organizations may find themselves in situations where their conduct falls outside the purposes for which they were granted tax-exempt status, leading to myriad issues for the organization itself. Currently, there is no required reporting for fiscal sponsorship arrangements on Form 990. Proposed reporting changes would require disclosure of who is operating the project, who controls the funds and how the funds are used. No timeline was provided for these potential changes, but proposed regulations are expected to be published. A period for public comment will be available before the regulations are finalized. How should tax-exempt organizations prepare for Form 990 changes? Actions tax-exempt organizations can take to help ensure they are ready for these potential Form 990 revisions include: Review how government grants and contracts are tracked, so your organization can clearly demonstrate the source, purpose and use of public funds. Enhance internal reporting processes to support potential new disclosures on how specific government funds are spent and allocated across programs and activities. Evaluate fiscal sponsorship arrangements and maintain clear documentation identifying who operates sponsored projects, who controls project funds and how those funds are used. Confirm that organizational activities, funding practices and public disclosures are consistent with the organization’s exempt purpose and mission. Strengthen board oversight , internal controls and fund stewardship procedures to address heightened scrutiny around transparency, accountability and misuse of charitable assets. Assess whether current accounting and compliance systems can support the more detailed reporting requirements. Read more Compensation strategies for nonprofits competing in tight labor markets The financial and operational benefits of nonprofit mergers and acquisitions How nonprofits can implement a technology strategy designed for long-term growth
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What’s not going away: Energy tax credits and incentives that survived the OBBB
With the passage of the One Big Beautiful Bill (OBBB) Act, many energy-related tax incentives are being reduced or phased out entirely . That’s led to understandable confusion — and in some cases, hesitation — among schools , tribal governments , construction and real estate firms, and nonprofit entities that were considering energy efficiency projects. But here’s the good news: Not all incentives are going away . Several key programs remain in place, such as credits for geothermal and battery storage systems. Other credits have a significant off-ramp before they go away. Public and nonprofit entities can still leverage these programs to substantially lower their energy costs, improve their infrastructure and save money. The key now is to understand what incentives are still available — and how to pursue them. Here’s what you need to know: Energy production tax credits or incentives that are still available under the OBBB The OBBB sunsets wind and solar energy tax credits by the end of 2027 or 2030, with deadlines depending on when a project began construction. However, tax credits for geothermal energy projects and battery storage systems remain largely in place. Geothermal energy tax credits Geothermal energy systems remain fully eligible for clean energy tax credits under the Investment Tax Credit (ITC) or the Production Tax Credit (PTC), depending on the project size and structure. What’s the same: Projects can qualify for a 6% base credit through 2032, plus bonus credits for meeting prevailing wage, apprenticeship and other requirements. For most organizations, the maximum available credit is 50%-60%. Public and tax-exempt entities can claim energy incentives via direct pay, meaning they receive the full value as a cash payment from the IRS. The credit applies to both new construction and retrofits that install ground-source geothermal systems for heating and cooling. What’s changed: The 6% ITC will phase down after 2032. Filers will be able to claim a base credit of 5.2% in 2033 and 4.4% in 2034. The credit will sunset after 2034 (unless extended). Battery storage tax credits Standalone battery storage systems continue to qualify for the technology-neutral ITC. Battery storage systems can be installed on their own or in conjunction with renewable generation systems such as solar or geothermal. What’s the same: Battery storage qualifies for a 6% base credit through 2032, with bonus credits available for meeting prevailing wage, apprenticeship and other requirements. For most organizations, the max rate is around 50%, although it could be as high as 70%. For tax-exempt entities, the credit can be claimed via direct pay. Storage systems are eligible whether they’re installed with or without renewable generation, as long as they meet technical and operational requirements (e.g., at least 5 kWh of capacity for commercial installations). What changed: Material assistance restrictions start to apply in 2026, disqualifying projects that use battery components or receive support from designated foreign entities of concern (FEOCs). Because many battery components are currently manufactured overseas, it’s critical to work with vendors or contractors who can source U.S.-made systems — especially if projects start in or after 2026. The ITC for battery storage will phase down after 2032. Filers will be able to claim 75% of the full value in 2033 and 50% in 2034. The credit will sunset after 2034 (unless extended). Bonus credits for domestic content may be available, but eligibility depends on sourcing and manufacturing. Energy efficiency tax credits or incentives that are phasing out The OBBB largely eliminates tax incentives aimed at making buildings more energy efficient. But the new rules don’t kick in until July 1, 2026, so there is a small window left to still claim them. Section 179D: Energy-efficient commercial buildings tax deduction Section 179D allows a tax deduction for qualifying energy-efficient improvements to commercial buildings, such as interior lighting, HVAC systems and the building envelope. To claim the deduction, the building or system must be placed in service during the tax year in which the deduction is claimed. The OBBB sunsets 179D for construction that starts after June 30, 2026. But for now, organizations that move quickly can still take advantage of the credit : The deduction is $5.65 per square foot (as of 2025) and will increase to $5.94 in 2026. Public and nonprofit entities cannot claim the deduction directly, but they can allocate it to the design firm or contractor responsible for the qualifying systems. Section 45L: New Energy Efficient Home Credit Section 45L offers a per-unit tax credit for the construction of new energy-efficient homes, including single-family and multifamily dwellings. The credit applies to homes that are sold or leased as residences during the tax year in which the credit is claimed. The OBBB eliminates 45L for homes acquired after June 30, 2026, including leased apartment units. Under the law, “acquisition” requires not just construction but also possession by the end user, so residential owners or tenants must move in by this date. Until then: The credit remains available — up to $5,000 per unit for homes that meet Zero Energy Ready Home standards, and $2,500 per unit for Energy Star–qualified homes. The builder (or developer) claims the credit directly. Public entities typically partner with eligible developers to leverage the incentive. IRA eligibility restrictions still apply. To receive the full deduction, projects must meet prevailing wage and apprenticeship requirements. Domestic content rules do not apply to 179D. What we’re waiting to learn: new details on FEOC energy credits restrictions Additional restrictions around FEOCs were a major change introduced by the OBBB. Broadly, FEOC rules prohibit certain foreign entities that are designated as national security threats from claiming energy tax credits or incentives. The OBBB added new restrictions around FEOCs that go into effect in 2026, but exactly how they’ll be applied remains uncertain. The current statute bars credits for projects that receive material assistance from prohibited entities — but it’s unclear how far up the supply chain the rule goes. That uncertainty makes it difficult to evaluate risk for long-lead-time components, like batteries and inverters. Treasury guidance is expected, likely before the end of the calendar year. In the meantime, organizations should keep detailed records of procurement discussions and vendor sourcing decisions and flag high-risk components during early planning. Your legal counsel may suggest adding FEOC clauses to new contracts with vendors or subcontractors. How to move forward — and make the most of what’s left Claiming these incentives requires more than simply checking boxes. Organizations need to plan carefully, collaborate early and evaluate the broader value of energy investments. As you assess your next steps, remember: the old rules may still apply, depending on when construction began. 1. Don’t assume new rules automatically disqualify you Some incentives, like clean energy tax credits for wind and solar are still available as long as construction begins before July 5, 2026. Even if a wind or solar system is placed in service years from now (e.g., in 2028), it may still qualify under the older, more generous provisions. 2. Don’t assume you’re ineligible Schools and nonprofits often assume energy tax credits aren’t for them — especially now that incentives for solar projects are phasing out. But updates to the law have made direct pay, deduction allocation and public-sector eligibility more accessible. If you’re installing high-efficiency HVAC, building affordable housing or adding energy storage, you may still qualify. 3. Energy savings still matter, even without full credits In some cases, equipment sourcing or FEOC restrictions could make it harder to qualify for the full credit. That doesn’t mean the investment isn’t worthwhile. Take battery storage as an example. Even if a system doesn’t earn credits, it could generate enough electricity to store, which could help save on utility costs or meet peak demand. Energy-efficient systems could pay off in energy savings or resilience, even when credits don’t apply. 4. Act before phaseouts accelerate Geothermal and battery storage credits remain fully available through 2032 — but begin to phase down after that. Your best bet is to evaluate and prioritize energy projects now, before incentives diminish or disappear. 5. Start early, with the right team Incentives come with complex eligibility rules, labor requirements and technical thresholds. Engaging a team early in the process helps ensure everything is properly certified and documented — and filed and allocated in a timely manner. (Many incentives must be claimed on the original tax return.) To get it right, clean energy advisors, engineers, legal counsel and tax professionals should all be involved in early planning. Read more How public schools can still secure clean energy tax credits after the One Big Beautiful Bill Act The One Big Beautiful Bill is phasing out energy incentives, but there’s still time to act How the OBBB just changed R&D deductions under Section 174
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How 529 plan changes provide new strategic opportunities for associations
The landmark 2025 expansion of 529 plan usage marks a significant advancement in how Americans can invest in their lifelong learning. No longer limited to traditional college expenses, 529 plans now allow for funds to be used toward adult-focused professional credentials, certifications and licensures. This change is particularly important in today’s rapidly shifting job market, where the need for upskilling, reskilling and flexible education paths is more pronounced than ever. Here’s an overview of 529 plan changes and how they’re reshaping education financing and association growth: How have 529 plans changed? Before the One Big Beautiful Bill (OBBB) Act , 529 plans were primarily used as tax-advantaged savings vehicles for college and higher education expenses. Key features included tax-free growth and withdrawals for qualified education expenses and limited use for K-12 tuition, capped at $10,000 per year, per beneficiary. Qualified expenses were mostly restricted to tuition, fees, books and room and board for postsecondary education. With the OBBB 529 plan updates, plans now: Cover adult credentials, certifications and licensures beyond college tuition. Simplify fund access and encourage lifelong learning for workforce adaptability. Why 529 plan changes matter By making these plans accessible for short-term and sector-based credentials, recent legislation recognizes the importance of continuous career development and inclusivity for nontraditional learners, such as working professionals and career changers. The legislation also aims to boost economic resilience by facilitating a more skilled workforce, while updated rules make it easier for adults to access funds without unnecessary administrative barriers. How it impacts association leaders For association leaders, the 529 plan updates open up new avenues for both growing membership and enhancing engagement. By positioning their certifications and licensures as 529-eligible, associations can attract new members eager to take advantage of affordable professional development opportunities. The ability to use 529 funds is also a compelling reason for current members to pursue further sector-based credentials, thus deepening their relationship with the association and improving member retention rates. Your next steps To maximize these opportunities, leaders should harness technological tools, such as artificial intelligence for personalized learning recommendations and data analytics to better understand member needs and credentialing trends. Implementing advanced CRM systems will help streamline member interactions and track progress, while integrated operational systems will provide seamless experiences and reduce administrative overhead. These strategies, rooted in the expanded 529 legislation, can ultimately drive greater organizational efficiency and sustained growth, positioning associations as pioneers in the evolving landscape of professional development.
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