May 3, 2024

What's Happening This Week...

• News from the Council
• What We're Tracking in DC
• Federal Government Engagement Opportunities
• Happening in the States
• News, Resources, and Events

News from the Council

We hope you can join some upcoming webinars the Council is hosting:

• On May 15, hear about how foundations are supporting nonpartisan voter engagement in communities across the country - and learn how your foundation can do the same.
• On May 16, join a discussion with FEMA staff to learn more about the draft National Resilience Guidance and share your reactions about what this guidance could mean for your communities.

What We're Tracking in DC

Updates on Donor-Advised Funds Regulations

On April 19, a bipartisan group of Members of Congress sent a letter to Treasury Secretary Janet Yellen regarding Treasury and the IRS’s proposed donor-advised fund regulations. They expressed that the draft DAF regulations are overly broad and could infringe upon charitable giving. They also reiterated that the proposed effective date is too soon.

On May 6 and 7, Treasury and the IRS will hold a public hearing on the draft regulations. Jenn Holcomb will join to share comments on behalf of the Council focusing on the concerns we have heard from our members. As a reminder, we shared comments with Treasury and the IRS on their draft regulations in February.

House Acts on Election Integrity and Foreign Influence in the U.S.

Earlier this week, Rep. Jared Golden (D-ME) introduced several bills aimed at protecting U.S. political processes from foreign influence. Among these is the Fighting Foreign Influence Act, which would require nonprofits to disclose some contributions from foreign governments or political parties. Rep. Golden, along with Sen. Sheldon Whitehouse (D-RI), also introduced the Crack Down on Dark Money Act, which would limit the ability of 501(c)(4) organizations to influence elections.

Federal Government Updates and Opportunities

• The IRS released an update to its strategic operating plan, outlining its objectives through 2025.
• The Department of Labor released final updates to overtime rules. The updated regulations increase the salary threshold for employees who receive overtime and adjust them for inflation starting in 2027. They also increase the threshold for highly compensated employees. Read analysis from the National Council of Nonprofits, and join Independent Sector’s webinar on May 8 to learn more.
• The Department of Education announced it will take over management of the Public Service Loan Forgiveness program from one of its student loan servicers. Processing of student loan forgiveness through this plan—which employees of nonprofits are eligible to receive—is paused until the transition is complete.
• The White House announced new workforce hubs throughout the country. They are aimed at advancing high-quality workforce development.  

Happening in the States

American Rescue Plan Act Data and Nonprofit Projects

As of December 31, 2023, state and local governments report that they collectively obligated an estimated $11.9 billion of State and Local Fiscal Recovery Funds (SLFRF) on charitable nonprofits, which is approximately 5.1% of their total SLFRF dollars. An estimated $80 to $90 billion remain unspent and must be obligated by the end of 2024. The SLFRF Final Rule makes it clear that charitable nonprofits are eligible for these funds as beneficiaries and providers of services. However, nonprofits are not automatically entitled to these funds, so advocacy is essential to secure investments before the end of the year.

Lawmakers Pass Positive Employment Policies

As nonprofits continue to struggle with the sector’s ongoing workforce shortage crisis, state policymakers are pushing employment policies to help alleviate some of the burdens. Examples from Kentucky, Maryland, and Nebraska address child care and recovery from the Baltimore Key Bridge collapse.

Webinar: OMB Uniform Guidance: What the Updates Mean for Nonprofits

The networks of the National Council of Nonprofits are hosting a special nationwide webinar on May 30 at 3:30pm ET to make sure charitable nonprofits know about the improvements to federal grantmaking rules and what the changes mean for their missions. Officials with the Office of Management and Budget will provide an overview of the Uniform Guidance, the recent significant improvements, and the implementation timeline. Additional experts from will share real-life examples of improvements for charitable nonprofits.

News & Resources

• What Higher Foundation Payout Rules Would Mean for Charities, Philanthropy Roundtable
• 10 Major Legal Threats to U.S. Civil Society, International Center for Not-for-Profit Law
• Can this firm invest in only Black women? This case will decide, Washington Post 

Keep in Touch!

Please feel free to reach out to any of us on the Government Relations Team with comments or concerns, or to share an issue, article, event, or op-ed you would like to see covered in a future Washington Snapshot.

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