Press Releases

Tim Delaney, President and CEO of the National Council of Nonprofits, releases the following statement:

Charitable nonprofits are justifiably outraged by reports that the Internal Revenue Service targeted applicants for tax-exempt status based on their apparent political beliefs. As more facts emerge on the developing story, the National Council of Nonprofits calls on policymakers and the news media to strengthen public respect for, and not exacerbate ignorance of, the laws governing and distinguishing the nonpartisan work of charitable nonprofits in communities across the country. We are concerned that the IRS scandal is causing collateral damage to the work of innocent charitable nonprofits in at least two ways:

First, media reports and statements from politicians are lumping all “nonprofits” together, thus misleading the public by failing to recognize the important distinctions between different types of tax-exempt organizations. Federal law is crystal clear that ”charitable nonprofits,” which are tax exempt under section 501(c)(3) of the Tax Code, may not lawfully engage in partisan political electioneering activities. The types of organizations at the center of the IRS scandal, however, are “social welfare” nonprofits, which are exempt from taxation under section 501(c)(4) of the Tax Code and may engage in some political activities. The current admissions by and allegations against the IRS relate largely if not exclusively to IRS treatment of applicants for 501(c)(4) status; yet when headlines across America link “nonprofits” and politics they give the false impression that all nonprofits, including charitable nonprofits, are engaged in partisan political activities, when they are not. The public is justifiably confused about which groups do and do not engage in politicking. As a result, some people may be walking away rather than supporting or engaging with their community-based charitable (and nonpartisan) nonprofits, thus lessening the impact in communities.

Second, the American people and charitable nonprofits alike depend on the Internal Revenue Service to be the cop on the beat enforcing the tax laws that govern all nonprofits. Therefore, we encourage policymakers to conduct their investigations swiftly and thoroughly, and then take quick corrective action. The fact that the IRS must respond to these investigations of serious allegations means that it is being diverted from its assigned duties of enforcing against fraud, lawfully screening applications for tax-exempt status, and providing help to the public and charities about appropriate stewardship of donor resources.

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Washington D.C. – The National Council of Nonprofits (Council of Nonprofits) announced the launch today of www.GiveVoice.org as a storytelling and data collection hub for people and nonprofits affected by sequestration. This new tool will enable charitable nonprofits to report the negative effects of the sequester on real people in local communities across America. It also shows how sequestration will increase community demands and decrease needed resources, saddling nonprofit staff and board members with unsustainable burdens. 

Charitable nonprofits are on the front lines in communities across the country addressing individual needs and solving local problems. Nonprofits often see the impact of policy changes first, and feel the effects in multiple ways. The GiveVoice.org site explains how sequestration hurts the work of virtually all nonprofits, not just those with government contracts, and how it harms their ability to serve the needs of residents in their communities. Nonprofit staff members, board members, volunteers, and those served by nonprofits are encouraged to share their stories at www.GiveVoice.org about how sequestration is affecting their communities. 

“As the reality of sequestration cuts play out, the work of nonprofits is going to become even more difficult from multiple compounding factors as many are hit by direct funding cuts to programs, hit again as state and local governments cut their funding further to make up for their own budgets being cut, and hit a third time as people who are furloughed or laid off as part of sequestration turn to nonprofits for help in unprecedented numbers,” Tim Delaney, President and CEO of the National Council of Nonprofits said in a statement issued as President Obama signed the cuts into effect. “Charitable nonprofits are already severely depleted from doing so much more, for so many more, for so much longer, with so much less; they can no longer underwrite government’s failures. Nonprofit employees and board members can no longer pick up the slack as elected officials refuse to do their jobs.” 

The GiveVoice.org website will be updated as stories come in from people across the country and the effects of sequestration continue to make themselves known. Over time, a clearer picture of the painful truths of this arbitrary and short-sighted policy will come into focus. 

Delaney added, “The 13 million individuals employed by nonprofits, the 63 million who volunteer for nonprofits, and the millions more who are served daily by nonprofits all need to tell policymakers how the cuts will impact their lives. And they need to tell Congress and the President to get back to work, fix the sequester, return to regular order for the federal budget, and stop hurting the American people.” 

Additional Resources

• Statement on Sequestration Cuts and the Damage to Nonprofits Serving Local Communities
• Infographic: The Devastating Human Impact of Sequestration Cuts

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The National Council of Nonprofits is a trusted resource and advocate for America’s charitable nonprofits. Through our powerful network of State Associations and 25,000-plus members – the nation’s largest network of nonprofits – we serve as a central coordinator and mobilizer to help nonprofits achieve greater collective impact in local communities across the country. We identify emerging trends, share proven practices, and promote solutions that benefit charitable nonprofits and the communities they serve. Learn more atwww.CouncilofNonprofits.org.

Washington, DC - National Council of Nonprofits (Council of Nonprofits) President and CEO Tim Delaney released the following statement: “While Washington lawmakers play the blame game over who is responsible for letting sequestration’s automatic spending cuts go into effect, America’s nonprofits, and the people they serve, have been the first to suffer the consequences. 

“Nonprofits have been in limbo for months already due to sequestration’s uncertainty, with contract renewals held up as states and localities wait to see how they are affected by the cuts. While for-profit road-builders cease laying asphalt until payments are guaranteed, nonprofits continue providing needed services in their local communities. Nonprofits with government contracts and grants haven’t kicked at-risk children out of group homes, cut back on care for mentally ill individuals, or stopped serving meals to seniors. Instead, nonprofits have continued operations as best they could, effectively subsidizing governments. 

“As the reality of sequestration cuts play out, the work of nonprofits is going to become even more difficult from multiple compounding factors as many are hit by direct funding cuts to programs, hit again as state and local governments cut their funding further to make up for their own budgets being cut, and hit a third time as people who are furloughed or laid off as part of sequestration turn to nonprofits for help in unprecedented numbers. Charitable nonprofits are already severely depleted from doing so much more, for so many more, for so much longer, with so much less; they can no longer underwrite government’s failures. Nonprofit employees and board members can no longer pick up the slack as elected officials refuse to do their jobs. 

“The time for playing politics is over. Real people in every community from coast-to-coast and border-to-border are being hurt. 

“It is time to speak up for our communities. The 13 million individuals employed by nonprofits, the 63 million who volunteer for nonprofits, and the millions more who are served daily by nonprofits all need to tell policymakers how the cuts will impact their lives. And they need to tell Congress and the President to get back to work, fix the sequester, return to regular order for the federal budget, and stop hurting the American people.”