February is Library Lover’s Month, a time to recognize the vital role libraries play in our communities — but they’re just one example of how the charitable sector strengthens society. Nonprofits, including many libraries, rely on a mix of public funding and private giving to provide essential services, from literacy programs to food assistance and housing support. Congress plays a key role in shaping policies that impact charitable organizations, from tax incentives for giving to funding programs that help them serve communities effectively. As we celebrate Library Lover’s Month, it’s also a reminder to advocate for legislation that supports the broader charitable sector, ensuring these institutions can continue their important work.
Legislators Reintroduce the Charitable Act to Expand Giving Incentives
On January 28, 2025, Representatives Blake Moore (R-UT), Danny Davis (D-IL), Carol Miller (R-WV), and Chris Pappas (D-NH) reintroduced the Charitable Act in the House, followed by Senators James Lankford (R-OK) and Chris Coons (D-DE) reintroducing it in the Senate on January 29. This bipartisan legislation would restore and expand the non-itemized deduction for charitable giving, ensuring that all Americans — regardless of whether they itemize — can deduct donations to charities, houses of worship, religious organizations, and other nonprofits from their taxes.
“Charitable giving supports lifesaving work, provides essential services, and strengthens our communities. The past few years have offered incontrovertible proof that tax incentives impact giving: When everyday Americans had access to the charitable deduction, they gave more generously. Fortunately, Congress has a rare opportunity to strengthen the work of charitable organizations and the fabric of our nation by passing the Charitable Act this year,” said Independent Sector President and CEO Dr. Akilah Watkins.
The Charitable Act ended the 118th Congress with 24 cosponsors in the Senate and 65 in the House. As the 119th Congress begins, it has already gained 19 cosponsors in the Senate and 14 in the House. Independent Sector encourages you to reach out to your Senators and Representatives to urge them to cosponsor this critical legislation if they haven’t already. You can check the current list of House cosponsors and Senate cosponsors to see which members of Congress from your state are already on the bill.
Federal Appropriations and Budget Reconciliation: What’s Next?
In December, Congress passed a Continuing Resolution (CR) to keep the government funded through March 14. With that deadline fast approaching, uncertainty remains about how lawmakers will proceed. A final spending deal has yet to be reached, leaving open the possibility of another short-term CR or the passage of a full FY25 budget.
Beyond government funding, Republicans in Congress also plan to use the budget reconciliation process at least once — potentially twice — this year. Reconciliation allows legislation affecting revenue and mandatory spending to pass the Senate with a simple majority, bypassing the need for Democratic support. However, the process must adhere to strict rules that limit what can be included.
In February, Congress began the reconciliation process with the House proposing a single bill and the Senate considering a two-bill strategy. Among other things, the House’s budget resolution includes provisions to:
- Extend expedited provisions of the 2017 Tax Cuts and Jobs Act, allocating up to $4.5 trillion.
- Raise the national debt limit by $4 trillion.
- Require at least $1.5 trillion in mandatory spending cuts over the next decade, which could affect programs such as the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF). These cuts may also impact nonprofits that play a role in connecting recipients with these programs.
While reconciliation technically allows passage without Democratic support, the GOP’s narrow three-seat majority in the House presents a challenge. Just two Republican defections could derail a reconciliation bill, meaning some level of bipartisan cooperation may be necessary.
As negotiations continue, we will provide updates on how these decisions may impact the charitable sector and the communities we serve.
Navigating Executive Orders: What Nonprofits Need to Know
Since taking office, the Trump-Vance administration has issued dozens of executive orders covering a wide range of topics from diversity, equity, and inclusion (DEI) to immigration and birthright citizenship. Many of these actions could have significant implications for the charitable sector, particularly for nonprofits that partner with federal agencies or receive federal funding. These organizations may experience longer wait times and slower processing for critical funds while the government begins to implement these executive orders.
The president has signed many executive orders, but legal challenges have blocked several from taking effect pending litigation. The evolving legal landscape adds further uncertainty for nonprofits navigating federal regulations.
To help organizations understand these developments, the National Council of Nonprofits hosted a webinar on February 7, discussing the administration’s executive actions and their potential impacts on the charitable sector. For those who missed it, a recording is available with more information and key takeaways from the discussion.
New Polling Highlights Strong Voter Support for Nonprofit Policy Priorities
On February 18, Independent Sector released new public polling results reflecting registered voters’ views on key nonprofit and public policy issues. The findings underscore broad bipartisan support for strengthening the charitable sector, ensuring fair funding practices, and preserving nonprofits’ ability to serve their communities effectively.
Key Takeaways:
- Restoring the Universal Charitable Deduction: 88% of voters support permanently restoring the universal charitable deduction, with 51% expressing strong support.
- Expanding the Deduction: Support for increasing the universal charitable deduction up to $5,000 has hit a four-year high of 83%, with at least 81% of Republicans, Democrats, and Independents in favor.
- Opposition to Taxing Nonprofits: 63% of voters oppose additional taxes on nonprofits to fund other tax legislation, including majorities of both Trump (58%) and Harris (67%) voters.
- Preserving the Johnson Amendment: 75% of voters — including 69% of frequent churchgoers — believe nonprofits should remain prohibited from endorsing or opposing political candidates.
- Ensuring Full, On-Time Reimbursements: 82% of voters support federal grant and contract reforms to ensure nonprofits are fully paid on time for delivering vital services.
- Strengthening the Nonprofit Workforce: At least 70% of voters support policies such as increasing the volunteer mileage reimbursement rate (82%), improving federal nonprofit workforce data (81%), funding national service programs (78%), extending tax credits to nonprofit employers (74%), and preserving the Public Service Loan Forgiveness Program (70%).
Nonprofits and Public Engagement:
- Trust in Nonprofit Policy Work: 81% of voters trust nonprofits to engage in policy efforts that rise above partisan politics and serve their communities effectively.
- Nonprofits Filling the Gap: 81% believe nonprofits address needs that government either cannot or should not handle, with both Trump (82%) and Harris (83%) voters recognizing
Encouraging Volunteerism: More than half of voters are more likely to volunteer with nonprofits that:
- Educate lawmakers about local community needs (60%)
- Promote community engagement and belonging (58%)
- Advocate for underserved populations (57%)
- Provide tools to help people contact lawmakers on issues they care about (54%)
- Offer resources to help people support nonprofits in their communities (51%)
These findings demonstrate overwhelming public support for policies that empower nonprofits to continue their mission-driven work. To explore the full polling results, visit TargetPoint Consulting Charitable Giving National Survey.
Travis Swanson is the Government Relations Manager at Independent Sector
