New Legislation Aims to Strengthen the Nonprofit Sector

The Nonprofit Sector Strength and Partnership Act of 2022 (H.R. 7587), was introduced by Rep. Betty McCollum (D-MN) and Rep. Fred Upton (R-MI), in order to establish a formal relationship for collaborative efforts between the U.S. government and the nonprofit sector. According to the proposed bill, “no Federal agency or office has responsibility for evaluating, building, or maintaining the capacity of the nonprofit sector” (HR 7587, 2022). To empower nonprofits to work collaboratively with federal officials to serve communities year-round, this bill will support structures that:

  • establish an interagency council for federal agencies to coordinate their work with the nonprofit sector;
  • institute a federal advisory board of nonprofit leaders, and;
  • secure a formal place for nonprofit expertise and input in the White House.

This bill also proposes policies that would:

  • provide a comprehensive set of employment data on the nonprofit sector;
  • create a simplified charitable registration system across states, and;
  • develop a commission on grant reform with representatives from nonprofits nationwide.

The bill has been endorsed, co-sponsored, and supported by a bipartisan cross-section of representatives, national nonprofit organizations, and government officials.

How will this affect my nonprofit?

Your nonprofit is likely one of the 92% of U.S. charitable organizations with budgets under $1mm. However, your organization likely needs access to federal investments to serve your community sufficiently and effectively. This legislation will give seats at the table to many nonprofits in the country seeking federal services, especially during times of crisis. The policies outlined in the bill will also reduce the barriers and burdens of government grants by facilitating collaboration.

To read more about this proposed legislation, please visit this link.