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This bi-weekly newsletter on public policy issues affecting nonprofits is provided as a benefit of membership in AZ Impact for Good, part of the nationwide network of the National Council of Nonprofits.

Federal News

Tax Reconciliation Package Moving. Take Action!

Nonprofit organizations are under threat. The House of Representatives is slated to vote as soon as this week on a tax reconciliation package that includes several harmful provisions opposed by NCN that would, if enacted, threaten the nonprofit sector. The bill also includes a new deduction for charitable giving.

Your voice matters! Thanks to the effective advocacy of nonprofit organizations nationwide, House Republicans removed a provision from the tax bill that would have granted unprecedented authority to the Executive Branch to revoke nonprofit status from organizations without due process. Nonprofits warned that this provision would have allowed Administrations to target charitable organizations based on ideological grounds.

This is important progress in ensuring the tax bill doesn’t harm nonprofit organizations, and validation of our effective collective advocacy. NCN will remain vigilant in ensuring such harmful language isn’t added back as tax legislation moves towards enactment.

Action Alert

Nonprofits should contact their Republican Senators and Representatives and urge them to:

❌OPPOSE granting unprecedented authority to the Executive Branch to revoke nonprofit status from organizations without due process.

❌OPPOSE new or expanded taxes on nonprofit organizations, including foundations.

❌OPPOSE limits on charitable donations as a "pay for" for the bill. 

✔️SUPPORT and EXPAND tax incentives for charitable giving.

[Read more]

 
Image of the Capitol with a megaphone in the foreground.
Nonprofits Under Threat

Analysis of the draft tax legislation approved by the House Ways and Means Committee and suggested actions for nonprofit advocates.

View the resource
Image of the Capitol with a preview of a document included.
Chart: Tax Provisions

Chart of the implications of specific sections of the draft tax legislation.

View the resource
Image of the White House and a hand stamping a paper.
Transparency Rule of Law

Why policymakers should not include a provision providing authority to the Executive Branch to revoke nonprofit status without due process.

View the resource
 
Federal FastView
  • SCOTUS to Decide on Nationwide Preliminary Injunctions: Last week, the U.S. Supreme Court heard oral arguments on whether federal district court judges have the power to issue nationwide preliminary injunctions. The outcome of this case could affect both cases brought by NCN to stop federal funding freezes, in which district court judges have issued nationwide preliminary injunctions.
    [Read more]

  • Lawmakers Respond to Administration Threats to Withhold Funds: Several Republicans have voiced growing concern over threats from the White House that it is open to unilaterally withholding or freezing funding Congress approves in upcoming FY26 spending bills.
    [Read more]

  • Medicaid, Food Security Programs Cut: Two House Committees voted last week to make significant changes to Medicaid and the Supplemental Nutrition Assistance Program (SNAP, previously known as food stamps), as part of the larger tax reconciliation package.
    [Read more] 

State & Local News

Regulations Affecting Charitable Nonprofits

Several bills seek to or will change nonprofit regulations and oversight by state law enforcement.

  • Indiana: A bill signed by the Governor restricts community benefits for certain nonprofit hospitals.
  • Montana: A bill sent to the Governor’s desk would exempt nonprofit officers at small nonprofits with 10 or fewer employees from personal liability for unpaid tax withholding.
  • Rhode Island: A troublesome bill has resurfaced to require nonprofits, as a condition for requesting state funds from the General Assembly, to post on their website the salaries, costs, and benefits provided to their ten highest-paid directors, officers, and employees.

[Read more]

 
Updates on Tax Legislation

Two new laws in Maryland will now impose a special-rate real property tax on property, including nonprofit property, and authorize localities to exempt large family child care homes from property tax, respectively. North Dakota’s Governor signed a bill that creates a 50% tax credit for qualified employers for child care contributions.

[Read more]


Read the full newsletter for additional quotes, research, Numbers in the News, and upcoming advocacy events to put the news in greater context and help you frame the debate.

Read more

Nonprofit Library

On Budget Reconciliation

  • Initial Analysis of the 2025 Tax Bill and Its Impact on Charitable Nonprofits, National Council of Nonprofits, Updated May 19, 2025.
  • Nonprofits Under Threat: What’s in the House Tax Bill and How You Can Help, National Council of Nonprofits, Updated May 15, 2025.
  • Transparency, Evidence, and Rule of Law: Protecting Nonprofits from Executive Branch Overreach, National Council of Nonprofits, May 2025.
  • Protecting Nonprofits in Tax Reconciliation – America’s Nonprofits: Essential Community Partners, National Council of Nonprofits, May 2025.
  • Charitable Giving Incentives, National Council of Nonprofits, May 2025.
  • Letter: Nonprofits are Under Attack by the Trump Administration — And so is the Well-Being of Us All, Jill Bennet, CEO of the Utah Nonprofits Association, The Salt Lake Tribune, May 7, 2025.
  • Opinion: Congress Must Protect Iowa’s Nonprofits in Tax Policy, Kimberly Kolakowski, Executive Director of Firefly and board member at the Iowa Nonprofit Alliance, The Daily Nonpareil, May 6, 2025.

On the Importance of Nonprofits

  • Trump's Tax Fight with Harvard Sends Chill Through Nonprofit Sector, Axios, May 5, 2025, quoting Diane Yentel, president and CEO of the National Council of Nonprofits.
  • It All Started with Gerry: Celebrating 50 Years of Impact Within the Sector, Bill Yelenak, President and CEO, Providers’ Council, The Provider, May 2025.
  • Opinion | Connor Daley: Vermont’s Nonprofits are the Backbone of our Communities. Let’s Support Them Like it, Connor Daley, VT Digger, May 9, 2025.
  • It’s Personal: Why Nonprofits Matter to Everyone, The Foraker Group, May 7, 2025.
  • Navigating New Times: A Heart-to-Heart on Supporting Delaware’s Nonprofits (14:46), Delaware House Democrats, May 2, 2025, featuring Sheila Bravo, President & CEO of the Delaware Nonprofit Alliance.

On Spending Cuts

  • New York’s Food Banks Brace for Triple Whammy of Federal Cuts, Tariffs, and Even Higher Costs, Jie Jenny Zou, New York Focus, May 14, 2025.
  • Arts Groups for People of Color Steel Themselves After Trump’s NEA cuts: ‘They Poked the Bear’, Gloria Oladipo, The Guardian, May 11, 2025.
  • Federal Impacts Survey Results, Massachusetts Nonprofit Network, Boston Foundation, and MassINC Polling Group, May 2025.
  • How Your Local Arts Nonprofit Could Suffer from Federal Grant Cancellations (18:21), Ericka Cruz Guevarra, Sarah Hotchkiss, Mel Velasquez, Alan Montecillo, Jessica Kariisa, KQED, May 9, 2025.
  • Colorado Nonprofits Work to Overcome Cuts; What ‘Climate Realism’ Means for Green Energy (49:31), Chandra Thomas Whitfield, CPR News, May 6, 2025, featuring Paul Lhevine, President and CEO of the Colorado Nonprofit Association.

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