National Council of Nonprofit Associations

Nonprofits and Public Policy

Welcome to the new format of the Nonprofit Policy News published by the National Council of Nonprofits.

With so much happening on multiple public policy fronts, we decided to help you by:

• Increasing the frequency to get information to you on a timely basis;

• Streamlining the content so you can quickly see key trends;

• Providing links to give you easy access to more detailed information;

• Reinforcing the "National Voice ● State Focus ● Local Impact" nature of our collective network by focusing on Federal Issues, State Trends, and Advocacy by Local Nonprofits; and

• Issuing special editions when needed to give you more in-depth insights on significant issues.

Our goal is to help America's vital nonprofits understand the public policy issues swirling around us all, know where to turn for help, and feel comfortable speaking out on the issues that threaten to harm our ability to help the individuals and local communities we serve.

Please forward this and future editions to your fellow staff and board members, as well as friends and colleagues at other nonprofits, so those who care about nonprofits can sign up to receive this free e-newsletter directly and learn about policy matters impacting nonprofits.

Appropriations for Fiscal Year 2010

Technically, the federal fiscal year started on October 1, but in keeping with a trend dating back to the 1990s, Congress did not adopt a federal budget by that deadline. To keep government running, Congress passed a Continuing Resolution that the President signed. The House has passed all 12 of its appropriations bills and the Senate has passed 6 of its 12. Once related bills are passed, they get sent to conference committees to resolve differences. Congressional leaders plan to complete the process before November, according to a briefing by the Washington Post.

Health Care Reform

• House status: Three Committees in the House have passed versions of a health care reform bill, and while each helps small for-profit employers, not one recognizes the similar needs of small nonprofits employers. See pages 1-2 of our recent Special Report on Health Care Reform. Next step: House leadership is blending the three versions into one for action by the full House.

• Senate status: Before adopting (or rejecting) the Chairman's Mark as Amended, the Senate Finance Committee has been waiting for a report of projected costs by the Congressional Budget Office. The CBO report just came out, showing that the Chairman's Mark as Amended would reduce the federal deficit by $81 billion over the next 10 years. Next step: Later today the Senate Finance Committee will vote on the Chairman's Mark as Amended, and if it passes (as most predict) then it will be merged with the version passed by the Senate Health, Education, Labor & Pensions Committee before consideration by the full Senate.

• The Kaiser Family Foundation has developed an interactive tool that enables readers to compare different features of the major health care reform proposals.

IRS Supports Nonprofit Lobbying

Alliance for Justice shared a favorable ruling it received from the IRS clarifying that public foundations (such a community foundations) that have made the 501(h) election may rely on the rules that govern grantmaking by private foundations. The ruling "makes explicit the common understanding and practice that grants not "earmarked" for lobbying do not count towards the grantor's lobbying limits - regardless of whether the grantee spends the grant funds on lobbying." For more information, see the fact sheet that the Alliance for Justice prepared explaining the IRS Private Letter Ruling.

Special New Resource: Federal Register

The federal government has started publishing the Federal Register, the "de facto newspaper of the executive branch," in XML format at Data.gov. According to a Washington Post article, this format "allows users to transport data from a Web site and store it, manipulate it or customize it elsewhere. Officials suggested that the move puts readers, rather than the government, in charge of deciding how to access the Register's reams of information."

State Budgets

• Pennsylvania marked its 101st day without a state budget last week before the Legislature finally passed bills that the Governor signed.  The delays forced many  nonprofits servicing state and county contracts and grants to lay-off staff, cut services, and even shut their doors.  Children, the elderly, and people with special needs often lost vital services. To help nonprofits - and the individuals and communities they serve - the Pennsylvania Association of Nonprofit Organizations (PANO) provided important leadership throughout that devastating budget impasse. Nonprofits across the country should visit the Public Policy page on PANO's website to see a sampling of the ways PANO has been engaged proactively in lobbying to find short-term solutions to this year's budget crisis and long-term solutions to avoid this tragedy in the future, issuing media alerts, conducting rallies, and much more.

• Notwithstanding claims by some that the recession is 'officially' ending, according to an article by the Associated Press, "History suggests it could take six or more years for sales and income taxes - which make up roughly two-thirds of states' revenues - to return to pre-recession levels. That could lead to deeper cuts to state jobs and services."

• New York's Governor recently declared his "State on Brink of Disaster" and warned of "cataclysmic" consequences in light of state revenues plunging down by more than 35 percent.

Regular Citizens Lobby Effectively

The First Amendment guarantees citizens the right to gather through nonprofits to lobby on issues. Nonprofits have not only a constitutional right but also a moral duty to speak up for the communities they serve. Legislative lobbying is not difficult for local nonprofits. By speaking passionately about their missions and telling their own stories, nonprofits can be quite effective in moving mountains in the public policy arena when necessary.

Consider what Anna McCarthy, a self-described "mere mom," accomplished when her 11-month old son nearly died. To protect her son in the future, Anna knew she had to do something. She openly admits she "didn't know anything" about government. "I had no background in politics. I was totally intimidated by the process.  I didn't want to call any government officials because, frankly, I could not recall the lessons from 11th grade civics."  Yet this regular citizen stepped forward to help pass federal and state legislation to protect her son and countless other people across the country. Read Mere Mom Moves Mountains - And Legislation in this "Success Story" by the Center for Lobbying in the Public Interest.

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The National Council of Nonprofits publishes Nonprofit Policy News as a service to the state associations and our members. The Nonprofit Policy News presents important information needed by all nonprofits. Therefore, we make it available to all who sign up for it, irrespective of membership in our network. We do, however, encourage all nonprofits to join their state association so the voices of nonprofits can be united at the national, state, and local levels.