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Exploring whether nonprofits should pay taxes on business income, examining how revenue sources, competition, and policy gaps are reshaping the sector’s financial landscape.

Nonprofit tax exemption business income is becoming one of the most important—and controversial—issues facing the sector today. As nonprofits generate more revenue through business-like activities, the question is no longer theoretical: should some of that income be taxed?

In this eye-opening conversation, Scott Hodge of Arnold Ventures joins The Nonprofit Show to examine how nonprofit revenue models have evolved—and where the current tax framework may no longer align with reality.

The nonprofit sector now represents $3.6 trillion in total revenue, with approximately $2.8 trillion coming from business-related activities. Yet much of this income remains untaxed. As Scott explains, “We have this enormous… gap in the tax code so that these businesses that are now nonprofits are not paying any tax on their business income.”

This raises real operational and strategic questions for nonprofit leaders. When organizations generate revenue through sponsorships, services, or large-scale operations, where is the line between mission-driven funding and commercial activity?

The discussion also revisits the intent behind the Unrelated Business Income Tax (UBIT) and why it may no longer capture the realities of today’s nonprofit economy. “UBIT has been made so full of holes that it doesn’t capture very much income at all,” Scott notes.

At the same time, the conversation carefully distinguishes between truly charitable organizations—those driven primarily by donations—and large-scale entities operating with minimal philanthropic income. This distinction matters, especially as nonprofits compete not only with for-profit businesses but also with each other for limited donor dollars.

For nonprofit executives, finance leaders, and board members, this episode offers a critical lens on:

Revenue strategy and risk exposure

Policy shifts that could impact operations

The long-term sustainability of tax-exempt status

This isn’t about weakening the sector—it’s about understanding how definitions, funding models, and accountability may evolve in the years ahead.

00:00:00 Introduction: Should Nonprofits Pay Taxes?
00:01:20 The Scale of the Nonprofit Economy
00:04:30 What Counts as “Business Income”?
00:06:45 Real Examples: NCAA, AARP, Hospitals
00:09:20 Understanding UBIT and Its Limitations
00:12:00 Nonprofit Survival vs Business Activity
00:14:10 Defining True Charity vs Commercial Operations
00:16:00 Where Large Nonprofits Blur the Lines
00:20:00 Sector Pressure and Public Perception
00:22:30 Why Policy Change Has Stalled
00:24:00 What Could Trigger Reform?
00:26:00 Final Thoughts: Protecting True Charitable Work

#TheNonprofitShow #NonprofitTaxation #NonprofitFinance

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Our national co-hosts and amazing guests discuss management, money and missions of nonprofits!
12:30pm ET 11:30am CT 10:30am MT 9:30am PT

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Nonprofit hiring challenges in 2026 are shifting in unexpected ways—and it’s not about a lack of talent. It’s about behavior. In this episode, we explore how “job hugging” is reshaping the nonprofit workforce and slowing hiring across the sector.

Dana Scurlock, Managing Director at Staffing Boutique, breaks down a growing trend where nonprofit professionals are choosing stability over opportunity. Rather than pursuing new roles or promotions, many are holding tightly to their current positions due to uncertainty in funding, policy changes, and broader economic pressures.

As Dana explains, “It’s not for lack of candidates—it’s for lack of candidate interest in moving jobs.” This shift has major implications for nonprofit leaders trying to fill roles, build teams, and drive innovation.

The result? Hiring pipelines are shrinking, searches are taking longer, and organizations are competing harder for fewer willing candidates. Even when strong candidates exist, they must be “courted” out of stable roles—raising the stakes for hiring processes and organizational reputation.

But the impact goes deeper. Job hugging isn’t just slowing hiring—it’s also affecting internal culture. Reduced mobility, fewer promotions, and fear-driven decision-making can limit innovation and stall organizational progress.

Dana also highlights a critical shift in candidate priorities: “More than anything, candidates want to be somewhere stable where they can grow and be set up for success.” For nonprofit leaders, this means rethinking how roles are positioned, how hiring is conducted, and how stability is communicated.

If your organization is struggling to fill roles, retain talent, or maintain momentum, this conversation offers practical insight into what’s really happening—and what you can do about it.

00:00:00 Introduction to Job Hugging
00:01:10 What Is Job Hugging?
00:03:30 Why the Nonprofit Job Market Is Shifting
00:06:40 How Uncertainty Impacts Career Decisions
00:09:10 Why Hiring Pipelines Are Slowing Down
00:12:00 Internal Job Hugging and Career Stagnation
00:14:50 Impact on Innovation and Organizational Growth
00:17:10 What Nonprofits Should Watch For
00:19:00 What Candidates Want Now: Stability Over Salary
00:21:30 Risk Aversion and Workforce Behavior
00:24:00 How Long Will This Trend Last?
00:25:40 What Leaders Can Do Right Now

#TheNonprofitShow #Nonprofitmanagement #NonprofitHiring

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Find us Live daily on X: @Nonprofit_Show

Our national co-hosts and amazing guests discuss management, money and missions of nonprofits!
12:30pm ET 11:30am CT 10:30am MT 9:30am PT

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Nonprofit succession planning strategy isn’t just a governance exercise—it’s a core risk management function that directly impacts mission delivery. Joan Brown (Third Sector Company) and Erick Seelbach break down how nonprofits can proactively prepare for leadership transitions without creating fear or disruption.

Too often, succession planning is treated as a reactive process—something triggered by a resignation or crisis. But as Joan explains, “A succession plan is a set of shared understandings and activities…that ensures we have the right people in the right places to deliver on our mission.” When embedded into organizational culture, succession planning becomes a stabilizing force—not a threatening one.

This important convo draws a clear distinction between succession planning and transition planning—two concepts frequently confused but critically different. Succession planning focuses on long-term leadership continuity across the organization, while transition planning addresses the tactical steps when a specific role changes hands.

The reality is sobering: fewer than 35% of nonprofits have a formal succession plan, and only 13% have plans for board leadership. At the same time, 86% of executive directors report they would leave for better professional development opportunities. That combination creates significant organizational vulnerability.

Erick emphasizes the importance of shifting mindset: “We make better decisions when we’re not in the emotional response to a crisis.” By integrating succession planning into performance reviews, strategic planning, and talent development, nonprofits can reduce risk while strengthening retention.

Key takeaways include:

Why succession planning should be position-based, not person-based

How to build an emergency leadership plan immediately

The role of professional development in retaining top talent

How to align succession planning with strategic goals

This is not about replacing people—it’s about protecting your mission!

00:00:00 Introduction to Succession Planning
00:02:00 What Is a Nonprofit Succession Plan?
00:03:15 Should Succession Planning Be Transparent?
00:04:40 Position-Based vs Person-Based Planning
00:06:00 Overcoming Fear in Leadership Planning
00:07:00 Succession Planning as Risk Management
00:09:10 Succession vs Transition Planning Explained
00:10:30 Building Transition Plans for Every Role
00:12:00 Connecting Talent Development to Succession
00:14:00 Why Leaders Leave: The Professional Development Gap
00:16:00 What Goes Inside a Succession Plan
00:20:00 How to Start Without Overwhelming Your Team
00:24:00 Emergency Planning and Interim Leadership

Find us Live daily on YouTube!

Find us Live daily on LinkedIn!

Find us Live daily on X: @Nonprofit_Show

Our national co-hosts and amazing guests discuss management, money and missions of nonprofits!
12:30pm ET 11:30am CT 10:30am MT 9:30am PT

Send us your ideas for Show Guests or Topics: HelpDesk@AmericanNonprofitAcademy.com
Visit us on the web:The Nonprofit Show