Nonprofit Leaders Expecting Federal Gridlock
David Thompson, vice president of public policy at the National Council of Nonprofits, fully expects gridlock given the divided branches of government. “That isn’t a necessarily a terrible thing, especially on big issues,” he said, since nothing big can get through via reconciliation.
Thompson is optimistic about repeal of unrelated business income tax (UBIT) on transportation benefits, which has bipartisan support. The UBIT for nonprofits was included as part of the tax reform package approved in December 2017. It’s possible it could be repealed next year as part of a tax package when technical corrections must be made, he said.
Gridlock will mean that less will have to be done at the federal level, Thompson said, and instead more focus on the states. “It’s incumbent on nonprofits to tell their story,” he said.