OSAP, ASAE Applaud Introduction of the Safeguarding America's Nonprofits Act

Late last week, the Ohio Society of Association Professionals (OSAP) and the American Society of Association Executives (ASAE) heralded the efforts of U.S. Representatives Greg Steube (R-FL) and Suzan DelBene (D-WA) for introducing the Safeguarding America's Nonprofits Act (H.R. 10148), a piece of bipartisan legislation clarifying that exemption from federal income tax does not constitute the receipt of "federal financial assistance."

The bill makes explicit that "federal financial assistance" does not include an exemption from federal income tax.

"Nonprofits across the country depend on their tax-exempt status to carry out their work. That status should never be treated as a form of government assistance," said Steube. "The Safeguarding America's Nonprofits Act puts a clear, permanent rule in statute so nonprofits do not have to worry about their tax exemption being reinterpreted as a government handout."

"When government steps back and considers the heavy-lifting associations do on behalf of the communities they serve, they must recognize that associations support Americans in ways the government cannot," said OSAP President & CEO Jarrod A. Clabaugh, CAE. "The argument for smaller government is counter-intuitive to placing more hardship on the very organizations that serve Americans already suffering from economic strain, surging educational costs and day-to-day access to basic needs. Many lawmakers recognize this, and this piece of legislation reflects that reality."

Without statutory clarity, organizations that accept no federal dollars could find themselves subject to obligations Congress designed only for entities that receive federal funding. For associations, that uncertainty can impact activities like membership governance, professional certification and credentialing, continuing education and the conferences and events that drive local economies in every state.

"Associations are among the most trusted institutions in American life. They set the standards that keep products safe and professions credible, train and credential the workforce and convene the people who solve problems no single company or agency can solve alone," said ASAE President and CEO Michelle Mason, FASAE, CAE, AAiP. "That work depends on their independence. The Safeguarding America's Nonprofits Act makes clear what has always been true: Tax exemption is not federal financial assistance, and it should never become a lever for government control over organizations that accept no federal dollars. ASAE thanks Congressman Steube and Congresswoman DelBene for introducing this important legislation and urges members of Congress to support it."

Associations directly support 1.1 million American jobs, provide $71.4 billion in wages, and contribute nearly $28 billion annually in federal, state and local taxes. Each year, associations hold more than 272,000 events, drawing nearly 52 million participants and generating $42 billion in community spending.

Both OSAP and ASAE have supported this clarification through the Community Impact Coalition, a group of more than 100 trade associations, charities and professional societies formed to educate Congress on the role of the tax-exempt sector. Clabaugh has served both OSAP and ALC on its steering committee since its foundation.

Both organizations urge members of both parties to support the Safeguarding America's Nonprofits Act.