Nonprofit Sector and Community Solutions Act

The Nonprofit Sector and Community Solutions Act (H.R. 5533) would strengthen America’s communities by making the federal government a more productive partner with nonprofit organizations by establishing 1) better communication with the federal government, 2) better coordination within government, and 3) enhanced data collection.

Why It Matters to Nonprofits

The charitable nonprofit sector is a significant contributor to the U.S. economy. In 2008, nonprofits employed over 13.5 million individuals, making up around 10 percent of the U.S. workforce earning almost $540 billion in wages annually. Governments at all levels work in partnership with nonprofits to improve lives in every community in America. Despite the importance of the nonprofit sector to the U.S. economy and to the success of many federal, state and local policy initiatives, no federal agency or congressional committee has responsibility for evaluating, building or maintaining the capacity of the nonprofit sector, and government does not collect the data necessary to make sound policy decisions that have measurable impacts in communities.

What the Bill Would Do

The Nonprofit Sector and Community Solutions Act has three key components:

• U.S. Council: Creates a bi-partisan, 16-member U.S. Council on Nonprofit Organizations and Community Solutions to consider the relationship between government and nonprofits, and make recommendations on efficiencies, contracting issues, research needs, and improving community-based impact.  Council Members would be appointed by the President and Congressional leaders. The Council would host an annual summit to inform Congress and the public on solutions and progress.
• Interagency Working Group: Establishes an Interagency Working Group on Nonprofit Organizations and the Federal Government to provide the means for Cabinet Secretaries, key White House officials, and the heads of critical agencies that interact with nonprofits, such as the IRS and Census Bureau, to convene and replace the current inconsistent and often conflicting federal policymaking relating to nonprofits with a more coordinated process to achieve better outcomes in addressing federal priorities on national and community challenges.
• Data Collection and Research: Charges a single, existing federal agency with the responsibility of coordinating data collection on nonprofits. The agency would develop metrics on performance and streamline reporting requirements to better inform Congress on the impact of nonprofit organizations. Also creates a small ($5 million) federal matching grant program to promote research on improving data collection, enhancing the effectiveness of nonprofit organizations, and building the capacity of nonprofits for greater performance.

What Nonprofits Can Do

Sign up to show your support for the legislation. View the list of more than 400 nonprofit supporters.

Use the sample letter to contact your Representatives and urge them to co-sponsor the Nonprofit Sector and Community Solutions Act. You can click on the map on this House of Representatives page to get a list of the Representatives from your state. You can also see a list of co-sponsors of the bill.

Contact your Senators and encourage them to introduce the Nonprofit Sector and Community Solutions Act in the Senate.

Take advantage of the August Recess to introduce, impress, and influence your Senators and Representatives.

Additional Resources

• Congresswoman Betty McCollum Website
• Bipartisan Dear Colleague Letter June 29, 2010
• National Council of Nonprofits Press Release
• National Council of Nonprofits Policy Brief (one page background)
• Watch the Press Conference by Congresswoman Betty McCollum and nonprofit leaders announcing the legislation on June 16, 2010
• Text of Legislation