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ARTICLE · 28 SEPTEMBER 2023

2023 Key Developments Impacting Nonprofits And Donors

McGuireWoods LLP
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The tax-exempt sector employs 29% of the American workforce and controls nearly $53 trillion in assets according to IRS statistics. Tax-exempt organizations also account for about 26% of the $1.5 trillion...

United StatesTax
Bradley Ridlehoover
Bradley Ridlehoover
Michele McKinnon
Michele McKinnon
Jean Gordon Carter
Jean Gordon Carter
Hunter M. Glenn
Hunter M. Glenn
Alec V. Sauble
Alec V. Sauble

The tax-exempt sector employs 29% of the American workforce and controls nearly $53 trillion in assets according to IRS statistics. Tax-exempt organizations also account for about 26% of the $1.5 trillion in federal tax expenditures (revenue losses due to tax-exempt status). Recognizing this large financial impact, governing authorities require nonprofits and their leaders to navigate complex tax rules to retain their federal tax-exempt status. Read more to learn about recent key developments impacting the tax-exempt sector.

Internal Revenue Service Updates

Overall Staffing. The IRS continues to experience staffing constraints agencywide. For example, the number of revenue agents (employees who handle examinations) has fallen from 13,879 in 2010 to 8,307 employees in pay status as of Sept. 30, 2022. While there have been technology advances since 2010, it is not surprising that, with decreased staffing, the IRS examined only 0.49% of individual returns and 0.84%

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