WASHINGTON— ASAE-led coalitions successfully advocated for important policy advancements in the tax bill passed by Congress last week.
“The investment by our members and other nonprofit organizations in ASAE’s coalitions was critical for ensuring that the voices of the association community were heard in the 2025 tax reform debate,” said ASAE President and CEO Michelle Mason, FASAE, CAE. “We thank Congress for their engagement with association leaders in shaping this tax bill. Coalitions like these will continue to be essential in educating members of Congress about the important role associations play in our economy.”
The Community Impact Coalition (opens in a new tab), launched by ASAE in January, led advocacy to Congress on preserving the current tax treatment of nonprofit organizations. Thanks to the coalition’s advocacy, sweeping tax increases on the nonprofit sector were never introduced in draft legislation, and two narrower tax provisions were removed during the legislative process:
- Taxing nonprofit organizations’ expenses on parking and transportation fringe benefits
- Taxing royalties generated from a nonprofit’s name and logo
Nonprofit organizations – including associations, professional societies, and charities – operate in the private sector to deliver services that help people meet their basic needs and ensure they are well equipped to succeed in today’s economy. Preserving their current tax treatment allows nonprofit revenues to continue to be dedicated to that mission.
Additionally, this legislation provides Americans with new tools to access the skills and knowledge they need to be successful in today’s economy.
Thanks to advocacy from ASAE’s Tomorrow’s Workforce Coalition (opens in a new tab), the final bill includes the Freedom to Invest in Tomorrow’s Workforce Act. This bill expands the use of 529 plans to cover postsecondary training and credentialing, such as licenses and nongovernmental certifications. It transforms these college savings plans into career savings plans and creates more viable pathways to career success.
ASAE applauds the approach of Congress in these two critical areas, and we encourage Members of Congress to continue engagement with the association community as we work together to strengthen our economy.