Government Affairs Update: Support Nonprofits!

It’s been another busy week in federal arts policy, with notable developments in Congress, court cases, and the NEA.  This update begins with a new call to action – this time to ask Congress to support the nonprofit sector in the reconciliation package currently under debate and revision.  Scroll down for additional arts policy news.  

These government affairs updates are provided for informational purposes only and are not intended as legal advice. Nonprofit arts organizations should consult with legal counsel for guidance specific to their circumstances.

Ask Congress to Support Nonprofits!

This week, the House Ways and Means Committee released its tax reform portion of the Reconciliation Package, and it includes several provisions that are harmful to the nonprofit sector.  Once passed in the House, the Reconciliation Package moves to the Senate, where it is expected to go through substantial revisions.  

Congress must understand how certain proposed measures would hurt their constituents and act to protect—not harm—the nonprofit sector and the people it serves.

SPEAK UP HERE!

Urge Congress to:

• Support and expand charitable giving incentives 
  Congress should pass the Charitable Act (S. 317, H.R. 801) —introduced by Sens. Lankford (R-OK), Coons (D-DE), and Reps. Moore (R-UT), Pappas (D-NH)—to provide non-itemizers a tax deduction for charitable contributions up to one-third of the standard deduction in 2026 and 2027.  A modified version was included in the House bill.  A Capital Analytics Policy study found that the Charitable Act would increase charitable donations by non-itemizers by $40 billion per year.
• Oppose new or expanded taxes on private foundations and universities 
  The House package proposes an increased excise tax on private foundations and increased endowment tax on colleges, and universities. As federal support for charitable and community programs declines, private foundations play a crucial role in filling the gap. Taxing them would only worsen conditions for the people and communities that rely on their support.
• Oppose expanding the Secretary of the Treasury’s authority to unilaterally designate section 501(c) nonprofits as “terrorist supporting organizations.”.  The House bill gives greater power to the Treasury Secretary to designate a nonprofit as a terrorist “supporting” organization and revoke its tax-exempt status.  The bill language leaves many in the sector deeply concerned that this provision has the potential for partisan abuse and creating a chilling effect on charitable sector speech and activity.  

Learn More Here:

• Joint Committee on Taxation's Description of Tax Provisions
• Statement from the Council on Foundations and Independent Sector
• National Council of Nonprofit's Overview of the House Tax Package.
• Impact Study of the Charitable Act
• Charitable Giving Coalition's Talking Points for The Charitable Act

In other Government Affairs news:

• Early this week, the NEA released another round of grant terminations.
• In the case of the ACLU/Theaters v the NEA, the arts organizations filed an amended complaint on May 12th pushing the NEA for more answers.  Read here.
• In early May, Mary Anne Carter was officially nominated by President Trump to serve as Chairperson of the NEA.  Her nomination now moves to the Senate for approval.
• The Executive Order to shut down the Institute of Museum and Library Services was halted through a preliminary injunction this week.  The lawsuit against the Administration was brought by 20 state Attorney Generals.  Read more here.