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Legislative Round-Up | September 2024

The Legislative Round-Up, Joint Session of Congress Image in Background

Tax Threat for Nonprofits on the Horizon?

Next year, a major tax package will move through Congress as over $3 Trillion of tax provisions of the 2017 Tax Cuts and Jobs Act are up for renewal. Some of the initial proposals have been quite sweeping, including reconsideration of the Unrelated Business Income Tax (UBIT) to include any nonprofit revenue source other than donations.

In simplest terms, Unrelated Business Income is money generated from an organization’s on-going activity when the activity itself does not directly further the organization’s exempt purpose.

This non-mission-related income is subject to federal tax at corporate tax rates, currently 21%.

Making what is now tax-free revenue – sponsorships, membership dues, educational program income, and investment income – subject to a 21% tax would produce a bonanza for the Treasury but would create a gaping hole in nonprofit resources.

TNPA is following this issue and has been working with other stakeholders in the nonprofit space to address this challenge should it pick up momentum.

U.S. Postal Service: No Stamp Price Increase for January 2025

On September 20, the USPS Board of Governors approved the request by USPS to skip the customary January increase. The next likely increase will be in July of 2025. That increase will include any increase which USPS might have sought when it chose to forego the January increase.

USPS explains its decision this way: “Our strategies are working and projected inflation is declining.” Among some mailer organizations, there is another view of the matter. Many of them, TNPA included, complained vigorously to the Postal Regulatory Commission about the substantial disruption to mail planning caused by two-a-year increases. Some PRC commissioners made their sympathies known. Perhaps one of the USPS “strategies” is to take heed when the PRC speaks, even when it does so unofficially.

Postmaster General DeJoy’s recommendation to keep first-class mail prices, including stamps, unchanged in January 2025 was approved by USPS Governors. The decision was based on working strategies and declining projected inflation. The USPS’s stated commitment to cost-saving measures and affordable service aligns with the 10-year Delivering for America plan and public service mission.

View the full USPS press release here.

TNPA’s First Young Professionals Capitol Hill Day

On September 18, TNPA conducted its first Young Professionals Capitol Hill Day. During a fast-paced day with eight meetings, our volunteers advocated national privacy legislation, the Universal Charitable Deduction, and artificial intelligence regulatory legislation. Among the highlights of the day were the meetings with Senator Jerry Moran (R-KS), Senator Ted Budd (R-NC), and two meetings at the staff level that dug deeply into the bipartisan AI regulatory legislation of Senators John Thune (R-SD and Senate Republican Whip) and Amy Klobuchar (D-MN). The day on the Hill concluded with a meeting with Senator Mark Warner’s (D-VA) Legislative Director, who was particularly generous with his time in explaining to our young professionals the nuance of Senate procedures and how the Senate works.

On national privacy legislation, Senator Moran has long supported comprehensive legislation that will preempt the current patchwork quilt of 14 individual state privacy statutes. Senator Moran will be an important player if privacy legislation moves forward next year. Also, in our meeting with Senator Gary Peters’ (D-MI) staff, it became clear that the Senator supports the need for legislation preempting the states.

Universal charitable legislation represents a sustained effort by TNPA, with 65 House members signed on to the legislation. In the Senate, 24 of the 100 Senators have signed on to the legislation of Senators James Lankford (R-OK) and Chris Coons (D-DE). One of our meetings was with Senator Lankford’s Senior Policy Advisor, where we strategized on other Senators who may agree to sign on to the legislation. Senator Lankford dropped by our meeting to say thanks for TNPA’s efforts on the charitable deduction legislation.

Also, the day on the Hill included meetings on the bipartisan AI regulatory legislation of Senators John Thune and Amy Klobuchar. TNPA has supported this legislation, which was reported out of the Senate Commerce Committee in late July but likely will not be taken up on the Senate Floor until next year. The bipartisan legislation – supported by four Republican and four Democratic Senators – would name the Department of Commerce as the principal regulator of AI. It also provides for a practical approach to AI regulation, with the level of regulation/disclosure increasing based on the potential level of risk of an AI process.   

Here is a link to the Thune/Klobuchar legislation, S.3312 – Artificial Intelligence Research, Innovation, and Accountability Act of 2023.

Update on California Artificial Intelligence Legislation

California artificial intelligence legislation was delivered to Governor Gavin Newsom on September 9, and he has until September 30 to sign or veto the bill or it becomes law. So far, there has been no clear indication whether the Governor will allow the legislation to become law. Among the provisions of the legislation, which is complex and far-reaching, are the following:

  • The legislation covers entities that spend $100 million or more in a year on AI development.
  • It places liability on both the developers of AI and the deployers of AI.
  • Developers of AI face a long list of requirements, including strict prevention of unauthorized access to an AI model, conducting an annual review of protocols, and publishing of annual safety and security protocols.

Here is a link to the California SB 1047 legislation.


Legislation in the States

Read more about new state laws and proposed state bills that could impact the work of the nonprofit sector by visiting TNPA’s State Legislation webpage.


Around Capitol Hill in 90 Seconds with Mark Micali
September 2024 | Recorded: 9.5.2024


Congressional Spotlight: Senator John Hickenlooper (D-CO)

Each month TNPA introduces you to a member of Congress who is a leader on legislative matters important to our TNPA community, with representation from both parties.

Headshot of Senator John Hickenlooper (D-CO).

Q&A with Senator John Hickenlooper (D-CO)

TNPA has worked closely with Senator John Hickenlooper of Colorado and had the opportunity to ask the Senator a few questions, and share them here:

What was the moment you realized you were serious about getting into public service?

Unlike a lot of politicians, I never held a public office — or even really got involved in politics — until I was in my forties! And it wasn’t the usual path either. In the 1980s, I was working as a geologist when I got laid off and decided to take a jump and open the first brewpub in Colorado. We opened the Wynkoop in lower downtown Denver (now known as LoDo) and worked with other businesses in the area to redevelop and attract new investments in the historic area. That experience taught me a new appreciation for the role of local government and how politics is really about bringing people together and making sure everyone felt heard. Not too different from working the bar at the Wynkoop!


Advocacy Partners

Gold Sponsors

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Are you interested in sponsoring TNPA’s advocacy program?
Contact Abby Graf at agraf@tnpa.org.

Mark Micali
Author: Mark Micali

Mark Micali is Vice President, Government Affairs for The Nonprofit Alliance and has spent his career on Capitol Hill.  You can reach him at mmicali@tnpa.org.

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