Taxes on what the IRS considers “excess” pay for nonprofit executives are biting a growing number of associations as inflation and increasing demands on senior executives drive up compensation. This is causing associations to write contracts differently — such as spreading out certain compensation over longer periods — to limit their tax bills, a tax expert told CEO Update. It also requires working more closely with accountants and compensation consultants. When legislation was passed in 2017 as part of the Tax Cuts and Jobs Act, nonprofit compensation over $1 million was subject to a 21% “excess executive compensation excise tax,” to be paid by the employer. That level… Read More