The Foraker Group

Today we are giving a big shout-out to Juneau nonprofits for their strong voices as they stood together to protect the essential work all nonprofits offer in communities across Alaska. We are proud to stand beside them and lend our voice to their effort.

After many hours, over many meetings, the Assembly of the City and Borough of Juneau tabled an ordinance that would have placed a sales tax on items sold by nonprofits, both those that were mission-related and those that are considered by the IRS to be unrelated business income. Foraker’s position is clear and aligns with the IRS that unrelated business income is subject to tax, and any sales tax effort should use that same system. Strong yearly mechanisms are in place to determine unrelated business income for nonprofits, and those should stand.

While we often don’t engage in local policymaking, we stood with Juneau nonprofits because of the potential precedent a sales tax of this kind could have on other communities. Unfortunately, there is no one way that nonprofits are treated in communities where a sales tax exists. Instead, organizations that operate in one or many communities must navigate each one separately. This is why the rules must be simple and easy to navigate for both the nonprofits and the government.

We strongly encourage any local government to invite nonprofits to the table early and often when considering any measure that would limit or advance their ability to deliver on their mission. In the end, this will save both time and money for the local government, local nonprofits, and the community as a whole.

Nonprofits are part of our way of life in Alaska. Every aspect of our day is integrated into nonprofit work, from switching on a light to caring for our children and our elders, to looking after our animals and our environment. We enrich people’s lives with art, culture, and religious expression, and we are an essential partner to local, state, and federal government as a cost saver, resource developer, and workforce driver.

We commend the Juneau Assembly for the right outcome of this healthy debate, and we celebrate the nonprofit leaders who stood up for the sector.

You can read Foraker’s testimony to the assembly here.

Want to talk with us more about it? Let us know here.