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Federal Policy News from the National Council

Courtesy of NDANO, a National Council of Nonprofits member 
Nonprofits Need to Be Vigilant in Healthcare Reform Debate 
Comprehensive healthcare reform is very likely to move through Congress this summer under the focused and steady bipartisan leadership of Senators Baucus (MT-D) and Grassley (IA-R) on the Senate Finance Committee (SFC). This effort was launched in November last year with Senator Baucus' "Call to Action", a white paper promoting a national "health insurance exchange" for the uninsured including both private plans and a public option, and envisioned to afford universal coverage and contain costs. The SFC has now held three roundtable hearings with panels of experts and thereafter gone into lengthy closed sessions of debate. The Committee has set a mid-June deadline for markup of a bill. Read more regarding options and financing approaches being considered.
Federal Legislative and Regulatory Developments
Congressional Appropriations Process Will Impact Nonprofits
On issues of tax importance to nonprofits, the President's proposed budget is still asking for a limit of 28 percent on itemized deductions, including charitable contributions; retention of the 2009 estate tax limits; and extension for two more years of charitable giving incentives, including the IRA charitable rollover. Congress' Budget Resolution also calls for the permanent extension of the estate tax at 2009 levels and a two-year extension of the annual package of tax extenders, including the IRA rollover and other charitable giving provisions.
 
Read more on specific nonprofit issues the National Council follows - funding the Serve America Act programs, including the Nonprofit Capacity Building Program; economic stimulus grants for nonprofits; and advocacy restrictions on the Legal Services Corporation.
Strengthening Communities Fund Supplants the Compassion Capital Fund
This year's stimulus act, the American Recovery and Reinvestment Act of 2009 (PL 111-5), authorized $50 million to be provided directly for nonprofit capacity building by the Department of Health and Human Services, Administration for Children and Families. That funding has become the new Strengthening Communities Fund, which recently issued its first grant announcements. Learn more. 
First Lady Announces Summer of Service Initiative
First Lady Michelle Obama and the Corporation for National and Community Service announced an initiative designed to put volunteers on a path to sustained service in the administration's key areas of energy, education, health care and community renewal in face of the economic downturn. Read more.
National Popular Vote Bill More Than 20 Percent of the Way There
Usually it's the Constitution and federal law altering the impacts of state law, but not if the National Popular Vote bill is signed by enough states. Under this legislation, all of a state's electoral votes would be awarded to the presidential candidate who receives the most popular votes in all 50 states and the District of Columbia. Learn more.
Nonprofits Advocate!
On July 15, state associations of nonprofits will visit their members of Congress to advocate for issues of importance to the nonprofit sector. Read more on the National Council's website. 
State Policy Developments
Special Congratulations to the Minnesota Council of Nonprofits
On May 16, the Minnesota Council of Nonprofits (MCN) and Minnesota nonprofits scored big when the Governor signed into law a public finance bill, HF 1298, that includes language preserving the state's charitable tax exemptions.  We applaud MCN's tireless efforts in support of nonprofits, and the Minnesota legislature's decision in preserving nonprofit tax exemptions.
 
Read more about the background of this legislation and other threats to nonprofit tax exemptions.
Special State Focus: Ohio and Nonprofits - What NOT to Do
Ohio Governor Strickland successfully convinced the House to amend the state's proposed budget to include a measure allowing the Governor's administration to create and operate government nonprofit corporations to "solicit financial contributions or in-kind contributions" to support government offices. Read more.
 
Read about new bill introductions that affect nonprofits in Tax Credits and Exemptions, Institutional Structure and Management, Advocacy and Lobbying, and Fundraising and Solicitations.

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