Lobby Days at the federal, state, and local levels are invaluable opportunities for nonprofits to be involved in the legislative process and influence policies that affect them and their communities. Meetings with elected officials and staff also give nonprofits more moments to share their mission while strengthening relationships. Lobbying is one form of advocacy and the ongoing conversations in Congress show why nonprofits should continue to do it to make a difference.
Organizations like the National Council of Nonprofits (NCN), the network of state associations of nonprofits, and nonprofits with multiple chapters or affiliates hold lobby days with goals that include collective action on policy issues. Earlier in June, more than thirty state associations of nonprofits scheduled nearly 140 Hill meetings for NCN’s Lobby Day in Washington, DC. Advocates raised issues of concern for nonprofits and their communities and brought specific asks on legislation such as the bill being considered under budget reconciliation. For instance:
- Charitable Giving Incentives: Preserve and strengthen tax incentives for charitable giving by including the Charitable Act (S.317 / H.R.801). In addition, oppose limits on charitable donations, specifically the 1% floor for charitable contributions by corporations and decreasing the value of charitable deductions by capping itemized deductions.
- Unrelated Business Income Tax (UBIT): Reject efforts to increase and expand UBIT to include qualified transportation fringe benefits – like transit and parking benefits – for charitable nonprofits. A similar provision was in the 2017 tax law and repealed in 2019.
- Foundation Excise Tax: Oppose increasing taxes on foundations and reducing the financial resources available to charitable nonprofits.
- Safety Net Programs: Reject efforts to cut Medicaid and the Supplemental Nutrition Assistance Program that impact many of the people served by charitable nonprofits.
The conversations also brought attention to nonprofit nonpartisanship (sometimes referred to as the Johnson Amendment), which ensures that nonprofits are protected from partisan influence and can focus on their mission.
Timing can influence outcomes: this year’s Lobby Day happened after the House passed its version and before the Senate Finance Committee released its draft text. Charitable nonprofits and advocates around the country also lobbied to express their concerns with some of the provisions in the version that passed the House. As a result, there are several changes in the Senate’s draft text that show the effectiveness of their efforts:
- Expand the universal charitable deduction to $1,000 for individuals and $2,000 for married couples.
- The proposal to increase and expand UBIT to include certain transportation fringe benefits was removed.
- The proposed changes to the foundation excise tax were removed.
While discussing policy issues and asking for a vote is a key part of Lobby Days, the relationships advocates make and strengthen during those meetings are just as important. In the future, offices may lean on nonprofits when drafting a bill, assessing the impact of proposed legislation on their district or state/Commonwealth, and determining how they will vote. Continue to share local data and stories of impact that elected officials and their staff can refer to, invite them to events and sites in their district, and participate in nonprofit Lobby Days.
Note: Charitable nonprofits can and should lobby on the issues that affect their mission and communities. There are plenty of resources affirming nonprofits’ ability to lobby, the process, and how lobbying is another form of advocacy.