January is National Soup Month, a celebration of how diverse ingredients come together to create something greater — a fitting metaphor for the partnership between Independent Sector and the charitable sector. As the 119th Congress convenes, advocacy takes center stage to shape policies that support our sector’s needs, while the charitable sector continues our essential work of service and impact. Together, these efforts create something truly nourishing for all.
The 119th Congress: A New Chapter in American Governance
The 119th Congress commenced with several notable changes and developments in its early weeks. Leadership elections were conducted smoothly, with minimal drama. In the Senate, Senator John Thune (R-SD) assumed the role of Majority Leader, succeeding Senator Mitch McConnell (R-KY) as the top Senate Republican. Thune’s elevation brings a seasoned perspective to Senate leadership and sets the tone for the chamber’s legislative priorities in the months ahead.
The Senate has also seen turnover since the start of the session. Senator JD Vance (R-OH) resigned on January 10, 2025, to prepare for his swearing-in as Vice President. Shortly afterward, Senator Marco Rubio (R-FL) stepped down on January 20, 2025, upon being confirmed as Secretary of State. Ohio Governor Mike DeWine appointed his Lieutenant Governor Jon Husted (R) to replace Vance, and Florida Governor Ron DeSantis appointed Florida Attorney General Ashley Moody (R) to fill Rubio’s seat.
In the House of Representatives, this Congress is starting with one of the most closely divided chambers in a century. Republicans hold a slim majority, which has already been tested by recent resignations. Representative Matt Gaetz (R-FL) resigned on November 13, 2024, and chose not to assume the seat to which he was reelected. Additionally, Representative Michael Waltz (R-FL) resigned on January 20, 2025, to accept the role of National Security Advisor. Special elections for both Florida districts are scheduled for April 1, 2025.
Further changes may soon follow. Representative Elise Stefanik (R-NY) is expected to resign in the coming weeks if confirmed as Ambassador to the United Nations. New York Governor Kathy Hochul would then schedule a special election for her seat. Until these vacancies are filled, House Republicans will remain at a narrow one-seat majority, which could present challenges in advancing legislative priorities during the early months of the new administration.
Proposed FARA Rule Changes Could Expand Compliance Burdens, Raise Concerns About Enforcement
On January 2, 2025, the Justice Department’s National Security Division issued a proposed rule to amend exemptions under the Foreign Agents Registration Act (FARA). Enacted in 1938, FARA aims to ensure transparency by requiring individuals acting as agents of foreign principals to disclose their activities influencing public opinion or government policy. The proposed rule seeks to narrow the exemption for commercial activities, exclude certain tourism promotion efforts, and modernize labeling requirements for informational materials. If adopted, these changes could substantially expand the scope of entities and activities subject to FARA registration and increase compliance obligations for registrants.
While the Justice Department argues that these updates will address gaps in the law and enhance transparency, advocates for the charitable sector worry the vagueness of these new provisions could lead to overreach or politically motivated enforcement. Concerns have been raised by people across the political spectrum that broad interpretations of the new rules could be weaponized against organizations, including small nonprofits and grassroots movements, increasing their financial and administrative burdens. With compliance costs set to rise and enforcement becoming more complex, it remains to be seen how these changes will balance transparency with fairness. It also remains unclear whether the Trump-Vance Administration will allow this rule, initially published under the Biden-Harris Administration, to take effect, or how it might choose to enforce it if implemented. The rule is open for public comment, offering stakeholders an opportunity to weigh in on its potential impacts.
National Taxpayer Advocate Makes the Case for a Uniform Standard Mileage Deduction
On December 31, 2024, the Office of the National Taxpayer Advocate released the 2025 Purple Book, outlining 69 legislative recommendations to Congress aimed at strengthening taxpayer rights and improving tax administration. Among these recommendations is a call to establish a uniform standard mileage deduction rate. This proposal addresses a long-standing discrepancy in mileage reimbursement rates for personal vehicle use. While the 2025 rate for business purposes is 70¢ per mile, the rate for charitable purposes remains at just 14¢ per mile.
The National Taxpayer Advocate highlighted the inequity and confusion caused by the current rates, noting that the costs of operating a motor vehicle are the same regardless of whether it’s being used for business or charitable purposes. They also pointed out that the charitable mileage rate of 14¢ per mile was set 27 years ago and no longer reflects the actual expenses of operating a vehicle. The recommendation calls for a uniform mileage rate that is indexed for inflation, ensuring that taxpayers are fairly compensated for their out-of-pocket costs when using their vehicles to support charitable organizations. Additionally, a single rate would simplify tax filing and reduce the risk of taxpayers mixing up the rates, which could lead to tax penalties.
This proposed change is a longstanding priority for Independent Sector, and we’re thrilled to see the National Taxpayer Advocate continue to weigh-in on this issue. By creating a fair and consistent standard mileage rate, Congress has an opportunity to acknowledge the essential role of charities while supporting taxpayers who give their time and resources to make an impact in their community. IS will continue advocating for this change, and we look forward to engaging with lawmakers to ensure this important reform is realized.
New Tool Highlights the Impact of the Nonprofit Sector Across the U.S.
Independent Sector is excited to announce the launch of our Nonprofit Sector State Profiles, an innovative tool designed to empower legislative advocacy at every level of government. This interactive dashboard provides a comprehensive look at the scope, diversity, and impact of the U.S. nonprofit sector by the numbers. Whether you’re making the case for nonprofit priorities to policymakers or exploring how nonprofits contribute to your state’s economy, this tool has you covered.
The profiles include the most up-to-date data from trusted sources like the Internal Revenue Service (IRS), Bureau of Labor Statistics (BLS), Census Bureau, AmeriCorps, and Independent Sector’s own research. You’ll find insights on the size of the sector, its economic contributions, the paid workforce, and the role of volunteers in all 50 states, the District of Columbia, and nationwide. While anyone is welcome to explore the dashboard, full printable versions of these profiles are available exclusively for IS members.
We encourage you to take advantage of this resource to inform your advocacy and elevate the voice of the nonprofit sector. Visit our website today to explore the Nonprofit Sector State Profiles!
Foundations on the Hill 2025
The 22nd Annual Foundations on the Hill, hosted and presented by IS Members United Philanthropy Forum and the Council on Foundations in partnership with Independent Sector, will be held in Washington, DC from February 23-26, 2025. For more than two decades, Foundations on the Hill has brought philanthropies, foundations, charitable sector leaders, and advocates to strengthen our collective impact on federal policy. Foundations on the Hill provides a unique opportunity to engage with policymakers and build relationships with partners across the sector. Registration for this signature event is now open with an early bird rate of $297 until Friday, January 31, and $397 thereafter. Register today — and we hope to see you in Washington in February.
Travis Swanson is the Government Relations Manager at Independent Sector
