Nonprofit Congressional Briefing Held at PATH
What a great event at PATH! On Friday, June 25th, nonprofit and community leaders and congressional representatives met at PATH to discuss issues currently impacting the nonprofit sector. Representatives from congressional offices had the opportunity to hear about the issues that our sector feels important. We discussed the Nonprofit Sector and Community Solutions Act, the Estate Tax, and Nonprofit Capacity Building. This is an annual event that EA alliance of nonprofits holds to stay connected to our representatives in congress and make sure they are informed on our position on key issues. EA alliance of nonprofits seeks to exert a powerful voice for the nonprofit sector by reaching out to our representatives on important policy issues.
The Nonprofit Sector and Community Solutions Act: Congresswoman Betty McCollum (D-MN4) introduced House bill 5533, the Nonprofit Sector and Community Solutions Act, on June 15, 2010 to strengthen the nonprofit voice in the federal government and to promote a greater understanding of the critical role charities play in our communities and economy. The main purpose of the bill is “To enhance the ability of the nonprofit sector to address public challenges and maximize opportunities to improve quality of life in the communities where nonprofit organizations work.” The legislation would:
- Establish the U.S. Council on Nonprofit Organizations and Community Solutions consisting of 16 leading voices from across the sector. The council would produce a report and convene an annual summit on improving the relationship between government and our sector.
- Create an Interagency Working Group on Nonprofit Organizations and the Federal Government composed of cabinet members and other leaders from agencies such as the IRS, National Endowment for the Arts, and the Corporation for National and Community Service. This body will help coordinate efforts between the two sectors.
- Require federal agencies to increase collection of data on nonprofits, with $5 million going to the National Science Foundation for research grants to our sector. The bill spells out a number of proposals such as more accurate counts of employees and better tracking of government funding to nonprofits.
The Estate Tax: Currently, no consensus has been reached on how to handle the federal estate tax. The tax is slated to return in 2011 as a $1 million exemption and a 55% tax rate (the 2001 level). President Obama and House Democrats are seeking to restore the tax at the 2009 levels ($3.5 million exemption; 45% tax rate). However, Senators Blanche Lincoln (D-AR) and Jon Kyl (R-AZ) are leading an effort to weaken the estate tax ($5 million exemption; 35% tax rate). A strong estate tax greatly benefits the nonprofit sector because the tax offers a sizeable incentive for charitable giving. We strongly support the efforts of President Obama and the House Democrats in restoring the estate tax at the 2009 levels.
The Nonprofit Capacity Building Program (NCBP) is a provision of the Serve America Act (HR 1388) which would provide a matching grant to intermediary nonprofit agencies. The grants would help fund costs of organizational development assistance to small and midsize nonprofits. The bill was signed into law April 21, 2009.
We enjoyed a great and had a great discussion with sector and community leaders.