The Law of Tax-Exempt Organizations, 2026 Supplement, 13th Edition

Preface

This 2026 cumulative supplement is the first supplement to accompany the thirteenth edition of The Law of Tax-Exempt Organizations. The cumulative supplement covers developments in the law of exempt organizations through the end of 2025.

On the legislative front, the One Big Beautiful Bill Act (OBBBA) (Pub. L. No. 119-21) was signed into law on July 4, 2025, and its provisions are generally effective for tax years beginning after December 31, 2025. Many of the tax provisions in the OBBBA are modifications or extensions of provisions of the Tax Cuts and Jobs Act, which was enacted in 2017, and several provisions of which were set to expire at the end of 2025. The handful of OBBBA provisions that directly affect tax-exempt organizations are summarized in this cumulative supplement. These include an expansion of the reach of the tax on excess tax-exempt organization executive compensation (IRC § 4960), an increase in the excise tax on the net investment income of private colleges and universities (IRC § 4968), and certain changes to the provisions that apply to qualified tuition programs (IRC § 529) and ABLE programs (IRC § 529A).

Guidance projects with respect to the first three of these provisions are listed on the 2025–2026 Priority Guidance Plan, which the Treasury Department and the IRS released on September 30, 2025. Final regulations regarding donor-advised funds, including excise taxes on sponsoring organizations and fund management (IRC § 4966) (proposed regulations ...