Introduction
In the recently-enacted Pub. L. 115-97, also known as the “Tax Cuts and Jobs Act” (the Act), many tax-exempt (non-profit) organizations are now subject to a substantial new tax placing limits on their ability to recruit, compensate and retain senior leadership talent. While penalizing employers for providing certain levels of otherwise reasonable compensation is not a new concept for publicly-traded companies, it is unprecedented in non-profit organizations and will require some adjustment to existing compensation and retention strategies.
