The new rules apply to nonprofits too. Starting in 2026, most employer-provided meals, including working lunches, are no longer deductible as a business expense.
Yes, running it through payroll is the primary workaround. If the meal’s value is included in an employee’s taxable income and reported on their W-2, you can deduct it fully as compensation.

• This reply was modified 2 days, 18 hours ago by  Casey.