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National Nonprofit Policy Updates
Landmark Bill Introduced
On June 16, 2010 VANNO and the National Council of Nonprofits joined Congresswoman Betty McCollum at the introduction of the The Nonprofit Sector and Community Solutions Act (H.R. 5533). The measure would strengthen America’s communities by making the federal government a more productive partner with nonprofit organizations by establishing 1) better communication with the federal government, 2) better coordination within government, and 3) enhanced data collection.
The U.S. collects and reports current economic performance indicators for nearly every other industry, but does not know basic facts about the nonprofit sector, such as how many individuals work for charitable nonprofit organizations, how many federal dollars flow to nonprofits through state and local governments, or even how much public support is given each year to distinct charitable activities. This legislation will finally provide a way for Virginia to have access to that data and help both nonprofits and policy makers establish better partnerships to serve local communities. Read more here.
DISCLOSE – Campaign Finance Reform Legislation Introduced
In response to the Supreme Court's decision in the case "Citizens United v FEC", Senator Chuck Schumer (D-NY) and Representative Chris Van Hollen (D-MD) introduced the DISCLOSE Act (summary and bill text) . The bill would require organizations participating in electioneering activities to disclose election-related expenditures to shareholders, board members, and the public. The sponsors of the bill hope to have it passed so the new regulations are in effect for the mid-term elections this fall. Neither the bill nor the Court's decision have changed the ban on 501(c)(3) electioneering activity. Learn about nonprofit voter engagement.
Small Employer Health Care Credit
The small employer credit for providing health insurance is now in effect, so qualifying smaller nonprofit organizations will start seeing savings when they file their next payroll tax statements with the Internal Revenue Service. The IRS has provided tax tips, guides, and answers to frequently asked questions on its website, and both the IRS and the U.S. Department of Labor will be issuing additional guidance in the future.
Nonprofits, Elections, and the Supreme Court's Recent Decision
The January 21, 2010 U.S. Supreme Court decision in Citizens United v. Federal Election Commission does NOT change how other laws limit the election-related activities of charitable nonprofit organizations with tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
To make sure nonprofits here in Virginia are aware of their full legal rights - and limitations - when it comes to participating in elections, click here to see a brief analysis that the National Council of Nonprofits prepared to help 501(c)(3) nonprofits avoid taking actions that could jeopardize their tax-exempt status.
VANNO and the National Council of Nonprofits (which VANNO members are a member of) share the concern that nonprofit leaders need to know not only what 501(c)(3) nonprofits cannot do, but also what we can do. That is why the brief analysis answers these questions:
- How Does the Recent Supreme Court Case Impact Nonprofits?
- What Can 501(c)(3) Charitable Nonprofits Do in Connection with Political Campaigns?
- What Else Can Charitable Nonprofits Do?
For those who want to know more in general, the brief analysis provides several good references.
For those who want to know even more about the effect of the Supreme Court's decision on 501(c)(3) nonprofits, the Alliance for Justice also has published a solid overview.
Nonprofits Included in White House Jobs Plan
On January 29, 2010, nonprofits received good news when the White House began outlining the details of a $33 billion job-creation proposal designed to spur hiring by small employers, specifically including nonprofits. This development marks important recognition by federal policymakers that nonprofits play a vital role not only as service providers, but also as employers important to the economic stability of local communities.
VANNO wants nonprofits in Virginia to be aware of the White House plan because it could influence personnel decisions for many nonprofits. So we asked the National Council of Nonprofits, to which members of the VANNO belong through your membership in us, to summarize the main components of the President’s proposal as presented during a White House conference call. The National Council reports that during the call Administration officials revealed: Nonprofits of any size would get a $5,000 tax credit for every new employee they hire in 2010, retroactive to the beginning of the year. Nonprofits of any size that increase the hours or wages of employees making less than $106,800 can be reimbursed for the additional Social Security taxes incurred The maximum benefit for any one nonprofit would be capped at $500,000 The Administration estimates that 1 million small employers (including nonprofits) will take advantage of these incentives For more information, the official White House fact sheet can be found here. The President’s plan is not the only one under consideration in Washington. The details easily could change as Congress crafts legislation in the weeks ahead. Therefore, recognize that at this time these are only proposals, not law. VANNO and the National Council of Nonprofits will continue to advocate for public policies that support a healthy and vibrant nonprofit sector.
47 Members of Congress Stand Up for Nonprofits
VANNO, through its partnership with the National Council of Nonprofits applaud the decision of 44 members of Congress to stand up for the millions of people employed by America's nonprofits. Those 47 Representatives, including Virginia Reps. Rick Boucher and Gerald Connelly, sent a letter 
on October 23 urging House leaders to include nonprofit employers in the final House health care reform bill. Unless Congress acts, millions of Americans employed by local nonprofits will be left without the protections that national health care reform will provide to employees of for-profit businesses. For more on health care reform and nonprofits, read the attached memo 
for background, current status, and next steps on the journey - as well as other amendments and issues being raised.
VANNO Attends White House Meeting On Nonprofit Sector
In July 2009, Deborah Barfield Williamson, VANNO’s Executive Director, attended a White House meeting with 80 fellow nonprofit leaders from across the country to explore ways government and nonprofits can best partner to serve local communities. Meeting in the Indian Treaty Room, the White House was represented by Michele Jolin, Senior Advisor in the new Office of Social Innovation & Civil Participation. Jolin and the nonprofit leaders discussed ways the National Council of Nonprofits, which includes VANNO, can leverage its unique national, state and local network to help the Office of Social Innovation & Civil Participation connect to small and midsize nonprofits to identify, promote and support innovative and scalable programs. The discussion also covered how to create a better policy environment for nonprofits to limited government and nonprofit resources can be leveraged for greater impact in local communities.
New Resource to Help Nonprofits Cope with the Economy
Small and midsize nonprofits, the lifeblood of America’s communities, are showing their tenacity during the economic decline, making the most of shrinking resources as they strive to meet the growing demands for their services. To give these nonprofits another lifeline, VANNO announces a free new resource available to nonprofits, policymakers, and the public on the internet.
VANNO is a member of the National Council of Nonprofits, which just launched the “Nonprofit Economic Vitality Center” on its website. This new resource center assembles key information from across the country and packages it in three sections. The first section presents information about the economy and the nonprofit sector. The next section analyzes how the economic downturn is hurting nonprofits in different geographic regions, as well as different types of nonprofits, such as the arts and health care.
Mileage Rate Tax Deduction for Volunteers
A volunteer mileage rate deduction fixed by law at 14 cents jeopardizes charities that rely on volunteer drivers, imposes hardship on volunteers from rural America, and treats our volunteers as second class citizens. Bills introduced in 2009 include S.243 (Cardin, the GIVE Act of 2009), S.285(Feingold), HR345(Platts), HR590 (Petri), and HR524(Lewis- House version of Cardin’s bill). The Platts and Petri Bills in the House would raise the volunteer mileage rate to 100% of the business rate (currently 55 cents per mile). The Lewis bill in the House and the Cardin bill in the Senate would raise the volunteer mileage rate to no less than the medical rate (currently 24 cents per mile), and would exclude from a volunteer’s gross income any mileage reimbursements paid to them for using their personal vehicle for charitable service.
Senators Baucus and Grassley urge Senate Appropriations to Fund Nonprofit Capacity Building Program
The President’s proposed budget – prepared before the Serve America Act was passed – did not include funding for many programs at levels authorized by the Act and attempts to specifically remove the express reservation of funds language for the Nonprofit Capacity Building Program. The Program’s champions, Senators Baucus (MT-D) and Grassley (IA-R), have written a supportive letter to the key appropriations subcommittee leaders, Senators Harkin (IA-D) and Cochran (MS-R), urging them to appropriate the full amount Congress specifically authorized for the Program - $5 million for FY 2010 (to be matched equally by private funding.) Contact Senators Webb and Warner and urge them to support the Nonprofit Capacity Building Program.
Ban on Oral Communications Regarding Stimulus Funds Expanded
Edward M. Kennedy Serve America Act (HR 1388) Signed Into Law
On April 21, 2009, President Obama signed into law the Serve America Act
(PL 111-013). This legislation will improve and expand national and
community service programs and strengthen the infrastructure for
volunteerism within the nonprofit community. Prior to signing the landmark
legislation yesterday, President Obama announced the nomination of Maria
Eitel to be chief executive of the Corporation for National and Community
Service which will administer the programs. Eitel is currently the
president of the Nike Foundation.
Key elements of the law include:
- More than tripling the number of Americans in national service programs.
- A Volunteer Generation Fund of $50-million in 2010, growing to
$100-million in 2014. Money would go to nonprofit groups or state
national-service commissions for programs to help charities recruit and
manage volunteers.
- Expansion of the mission of the Corporation for National and Community
Service through new service programs that would provide incentives for
students and senior citizens to participate in volunteer community
service.
- Creation of a "silver scholars" volunteer program for seniors and a
summer of service program for middle and high school students who would
receive a $500 education award to be used towards college.
- Creation of a clean energy corps, education corps, and health futures corps.
- An increase in the education reward for national volunteers from $4,725
to $5,350, tying the reward to the maximum Pell grant in the future, and
letting those older than 55 transfer the education reward to a child,
foster child or grandchild.
- A Social Innovation Funds Pilot Program, which would provide "venture
capital" to help nonprofit groups that have developed successful ways to
tackle social problems expand their work. It would make $50-million
available in 2010, growing to $100-million in 2014, with matching funds
required from other sources.
And last but not least, it includes a Nonprofit Capacity Building Program.
Learn more about that program and read Senator Baucus' floor speech in the
Congressional Record or Senator Grassley's summary, with our State
Association sign-on list included.
For more information on the entire bill, read the House Education and
Labor Committee summary.
Learn more about the ServiceNation coalition that advocated for the Serve
America Act, and the legislative background on the bill and amendment.
Susan Sanow, Deputy Executive Director of the Center for Nonprofit Advancement spoke on behalf of CNA and VANNO at the Public Meeting of the Corporation for National and Community Service. The Corporation convened the meeting to hear public comment on implementation of the Serve America Act. Read Susan's comments
College Loan Forgiveness Provisions for Nonprofit Employees
The department of Education has published final regulations for the College Cost Reduction and Access Act of 2007 (CCRAA). This Act provides for loan forgiveness for full time employees of "public service organizations," including 501(c)(3) organizations, and was supported by VANNO in partnership with the National Council of Nonprofits. Nonprofit full-time employees (at least 30 hours a week) making monthly college loan repayments can count each month of nonprofit empl0yment towards the 120 months of payments needed to quality for forgiveness of the remaining loan balance, beginning with payments after October 1, 2007. The effective date applies to payments, and thus existing nonprofit employees with outstanding student loan of more than ten years future duration can benefit from this provision.
The way it works: If you are a college graduate facing more than ten years of loan repayments, and if you work in “public service jobs,” - including working for a nonprofit - for ten years while making monthly payments on my loan, you can ask to have the balance of your loans forgiven. In short, ten years of public service earns the dividend of canceling the rest of your college debt.
More specific information and questions from employees should be redirected to the Department of Education. The website, www.ibrinfo.org may also be helpful.
Is your Organization Ready? 403(b) Retirement Plan Guidelines Are Changing
On January 1, 2009, a whole new world is coming for your 403(b) retirement program. To ensure that you and your members know about these changes (the most sweeping in 43 years), you can learn more on the IRS website.
IRS Simplifies Advance Ruling Process for Public Charity Status of Section 501(c)(3) Nonprofit
On September 9, 2008, the IRS issued temporary Income Tax Regulations
that simplify the process for nonprofits to secure tax-exempt status, eliminating the advance ruling process for a section 501(c)(3) organization. Learn more here.