Policy news from National Council of Nonprofits

President signs Edward M. Kennedy Serve America Act

Natinal Council of Nonprofits

On April 21, President Obama signed into law the Serve America Act, HR 1388, a milestone for the national service movement and the largest expansion of civilian service since the Depression. It will dramatically expand national and community service programs and strengthen the infrastructure for volunteerism within the nonprofit community. It includes the Nonprofit Capacity Building Program championed by the National Council of Nonprofits and Senators Baucus (D, Mont.) and Grassley (R, Iowa). In his signing address, President Obama said, "We need your service, right now, at this moment in history." Read more.

Federal legislative and regulatory developments

"Sense of the Senate" expressed on charitable deductions -- During debate on the Serve America Act, the Senate included Senator Baucus' (D, Mont.) "sense of the Senate" amendment expressing support for preserving the tax deductibility of charitable contributions and for "additional ways to encourage charitable giving." For more information, analysis and commentary about the controversy visit the NCN website and read our Special Report.

Congress re-opens debate on estate tax and healthcare reform – The House and Senate passed differing FY 2010 budget resolutions before the April recess and are now actively in conference to reconcile the two. Read more.

Tax Certainty and Relief Act of 2009 introduced – It's all about "certainty in uncertain times." Elements of the proposal, S 722, include: permanent protection for more than 20 million Americans from the alternative minimum tax; a measure to make permanent the 10, 25 and 28 percent individual tax rates; permanence of the income eligibility threshold for the child tax credit; and permanence of the estate tax at levels already in effect this year. Read more about the bill.

Rep. McDermott (D, Wash.) introduces Estate Tax Bill – The Sensible Estate Tax Act of 2009, HR 2023, would strengthen the estate tax beyond the current 2009 levels and beyond what President Obama has proposed. Read more.

Senators introduce flat rate excise tax for private foundations – Senators Schumer (D, N.Y.), Levin (D, Mich.) and Stabenow (D, Mich.) introduced S 676, which would simplify the tax code for private foundations to increase charitable giving. The bill would remove the current two-tiered excise tax imposed on private foundations and replace it with one flat rate, which is to be set between 1 and 2 percent. Read more. 

Newspaper Revitalization Act would allow newspapers to operate as nonprofits – S 673 proposes 501(c)(3) educational newspapers and would make tax-exempt all advertising and subscription revenue, while making contributions tax deductible for qualified newspaper corporations. Read more.

House passes unfunded federal mandate on residential programs for teens – The House passed its version of the Stop Child Abuse in Residential Programs for Teens Act of 2009, HR 911, which now moves to the Senate for consideration. It would set minimum standards for covered nonprofit programs that include residential wilderness or outdoor experiences, expeditions or interventions; boot camp experiences; therapeutic boarding schools; or behavioral modification programs. Read more.

Census Bureau to conduct minority outreach program for 2010 count -- To ensure the most accurate census ever, the Census Bureau plans a new minority outreach effort to help target historically hard-to-reach communities for the 2010 census. Read more on our website or the full GAO report.

State policy developments

State association helps launch nonprofit caucus in Michigan – The Michigan Nonprofit Caucus is now active in the state legislature thanks to the collaborative efforts between NCN state association member Michigan Nonprofit Association, the Council of Michigan Foundations and Michigan Association of United Ways. See NCN’s June 2008 Policy News to learn about the work of the Pennsylvania Association of Nonprofit Organizations in helping to create the Pennsylvania Legislature's Charitable Nonprofit Caucus.

Special state focus: Audit thresholds – Learn more about new activity in Maryland, Connecticut, and Minnesota

New bills introduced – Read about new bill introductions that affect nonprofits in Tax Credits and Exemptions, Institutional Structure and Management, and Fundraising and Solicitations.