Nonprofits take a clear, unified message to Capitol Hill

By Lisa Maruyama, HANO president & CEO

At the National Council of Nonprofit's member meeeting at the end of May in Washington, D.C., I was among the state association representatives who paid multiple visits to the Capitol to meet with our states' Senators and Members of Congress to deliver a clear, unified message on behalf of the nonprofit sector. These were the bullet points:

• Nonprofits need to be at the table for conversations about jobs and the economy. Job creation incentives should apply to nonprofits, too. We are economic drivers of the economy, employing 13 million workers nationally. That's 10 percent of the workforce and 5 percent of the Gross Domestic Product.
 
• As part of a deficit reduction strategy, President Obama plans to approve a decrease to the charitable deduction rate from 35 percent to 28 percent. An unintended consequence could be a decrease in charitable giving. The National Council of Nonprofits' 2011 Public Policy Agenda calls for consistent tax exemptions and credits that are critical to the strengthening of the sector. A related Congressional Budget Office report has assessed the impact these changes in tax policy could have on philanthropy. 

• A public-private partnership between governments and nonprofits is key to improving lives and communities across the country. Sustaining that partnership requires reforms to government contracting processes that ensure that payments to nonprofit organizations for actual and indirect costs from the federal government through state and local governments are applied consistently, fairly, and in a timely manner.

• For nonprofits to shoulder their burdens, we need full funding for the Nonprofit Capacity Building Program and the Strengthening Communities Fund and reforms that expand the availability and range of trainings to address the needs of both rural and urban communities.

At the state level, we shared some of our wins at the Hawaii Legislature, including the passing of a prompt payments task force to be convened by the Department of Accounting and General Services and other key stakeholders in the nonprofit contracting and payment processes. HANO is named to the task force representing the nonprofit sector and nonprofit contractors.

Also, we staved off yet another threat to completely revoke nonprofits' General Excise Tax exemption. Unfortunately, charities will temporarily have to pay GET on income from trade exhibits and display space at nonprofit conferences and conventions. Click here for a complete bill tracking report from this session.