Is Your Nonprofit Classifying Workers Correctly? What the IRS Wants You to Know

ARTICLE | February 19, 2026

For nonprofit organizations, every dollar counts and every compliance misstep can have serious consequences. One area where many nonprofits unknowingly put themselves at risk is worker classification. Misclassifying an employee as an independent contractor can trigger back taxes, interest, and IRS penalties that strain even the most carefully managed budget. Knowing how to correctly distinguish between employees and independent contractors, understanding the IRS standards that apply, and taking proactive steps to protect your organization are essential for any nonprofit operating in today's complex regulatory environment.

Read the full article here.

Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.