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ARTICLE · 23 JANUARY 2025

2025 IRS Inflation Adjustments

Harmon, Curran, Spielberg & Eisenberg
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In October of 2024 the Internal Revenue System announced the annual inflation adjustments for over 60 tax provisions for tax year 2025. The following provisions are potentially applicable to nonprofits...

United StatesTax
Stephanie Robbins
Stephanie Robbins

In October of 2024 the Internal Revenue System announced the annual inflation adjustments for over 60 tax provisions for tax year 2025. The following provisions are potentially applicable to nonprofits.

Low Cost Article

The unrelated business income of certain tax-exempt organizations does not include proceeds from the distribution of "low cost articles" related to charitable solicitations (such as mugs or key chains imprinted with the organization's logo). For the 2025 tax year, a low cost article is an article costing $13.60 or less, a 40 cent increase from 2024.

2025: $13.60

2024: $13.20

Other Insubstantial Benefits

In Revenue Procedure 90-12 (as amplified by Rev. Proc. 92-49 and modified by Rev. Proc. 92-102), the IRS provided guidelines for charitable organizations regarding the deductibility of contributions by donors who receive something in return for their payments. The original guidelines stated that even when donors receive benefits in return

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