WASHINGTON — The American Society of Association Executives (ASAE) today praised U.S. Representatives Greg Steube (R-FL) and Suzan DelBene (D-WA) for introducing the Safeguarding America's Nonprofits Act (H.R. 10148), bipartisan legislation clarifying that exemption from federal income tax does not constitute the receipt of "federal financial assistance."

The bill makes explicit that "federal financial assistance" does not include an exemption from federal income tax.

“Nonprofits across the country depend on their tax-exempt status to carry out their work. That status should never be treated as a form of government assistance,” said Rep. Greg Steube. “The Safeguarding America’s Nonprofits Act puts a clear, permanent rule in statute so nonprofits do not have to worry about their tax exemption being reinterpreted as a government handout.”

"Associations are among the most trusted institutions in American life. They set the standards that keep products safe and professions credible, train and credential the workforce, and convene the people who solve problems no single company or agency can solve alone. That work depends on their independence. The Safeguarding America's Nonprofits Act makes clear what has always been true: tax exemption is not federal financial assistance, and it should never become a lever for government control over organizations that accept no federal dollars. ASAE thanks Congressman Steube and Congresswoman DelBene for introducing this important legislation and urges members of Congress to support it," said ASAE President and CEO Michelle Mason, FASAE, CAE, AAiP.

Without statutory clarity, organizations that accept no federal dollars could find themselves subject to obligations Congress designed only for entities that receive federal funding. For associations, that uncertainty can impact activities like membership governance, professional certification and credentialing, continuing education, and the conferences and events that drive local economies in every state.

Associations directly support 1.1 million American jobs, provide $71.4 billion in wages, and contribute nearly $28 billion annually in federal, state, and local taxes. Each year, associations hold more than 272,000 events, drawing nearly 52 million participants and generating $42 billion in community spending.

ASAE has supported this clarification through its Community Impact Coalition, a group of more than 100 trade associations, charities, and professional societies formed to educate Congress on the role of the tax-exempt sector. ASAE urges members of both parties to support the Safeguarding America's Nonprofits Act

MEDIA CONTACT: Chris Vest, CAE, 202-626-2798, cvest@asaecenter.org

 

About ASAE

ASAE is a membership organization of more than 50,000 association executives and industry partners. Since it was established more than 100 years ago, its members have and continue to lead, manage, and work in or partner with organizations in more than a dozen association management disciplines, from executive management to finance to technology. With the support of the ASAE Research Foundation, a separate nonprofit entity, ASAE is the premier source of learning, knowledge, and future-oriented research for the association and nonprofit profession and provides resources, education, ideas, and advocacy to enhance the power and performance of the association and nonprofit community. Visit ASAE at Welcome to ASAE — American Society of Association Executives (asaecenter.org)