In mid-June, Congresswoman Betty McCollum, D-Minn., announced the introduction of groundbreaking legislation, the Nonprofit Sector and Community Solutions Act (H.R. 5533), which is one of the first federal initiatives to holistically address the nonprofit sector. McCollum hopes the bill will take the first steps toward integrating the nonprofit sector into the federal policymaking process, by establishing formal structures in Congress and federal administrative agencies focused on the success of nonprofits.
“As powerful and productive as nonprofit organizations are, their needs are not being addressed by Congress or the Administration. That must change,” Congresswoman McCollum said in a statement.
“This legislation is the beginning of a new, positive conversation about the nonprofit sector in Washington and across the country. If Congress can work with leaders in the nonprofit and foundation communities we can build a stronger nonprofit sector, craft smarter federal policy, and create more vibrant communities in every state.”
According to McCollum officials, H.R. 5533 proposes the creation of a bipartisan United States Council on Nonprofit Organizations and Community Solutions, composed of leaders from nonprofits, foundations, businesses and all levels of government to identify high-priority issues and make formal recommendations to Congress and the administration.
The legislation will also establish the Interagency Working Group on Nonprofit Organizations and the Federal Government to improve policy coordination among agencies in their dealings with nonprofit organizations to enhance outcomes and accountability.
Finally, the Nonprofit Sector and Community Solutions Act would assign the Department of Commerce the task of compiling data on nonprofits and develop metrics for performance, establish reporting requirements, and expand information, so Congress can make well-informed policy decisions on nonprofit legislation.
“Today,” McCollum said in her remarks, “nonprofits are regulated by the IRS but poorly represented in Congress. No committee in the House or Senate has responsibility for the success of the nonprofit sector.
No federal agency is focused on making nonprofit organizations more effective. Washington needs to start caring as much about strengthening nonprofit organizations as it does about regulating them.”
A number of nonprofit organizations have supported the legislation, including the Independent Sector, which said on its website it has been working with McCollum’s office since last fall. To read more about the Independent Sector’s role, read " IS endorses H.R. 5533, examines elements of bill" in our current issue of Nonprofit Business Advisor.
To read the complete Nonprofit Sector and Community Solutions Act of 2010, visit www.mccollum.house.gov/images/stories/Statements2010/hr%205533.pdf
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