Calculate your overhead rate (total annual overhead ÷ total billable hours). Add that to staff wages and direct costs (meals, rentals). That gives your break-even floor. Then compare with market rates and adjust for your mission.

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.

Mark, great breakdown. The core theme: a windfall tests strategic maturity, not luck.

Avoid the cliff. Treat it as growth capital to build systems and revenue streams that outlast the gift, not as a budget patch.