Nonprofit Sector Strength and Partnership Act (H.R. 7587)
On April 26, 2022, Representatives Betty McCollum and Fred Upton introduced the Nonprofit Sector Strength and Partnership Act (H.R. 7587), a bill to ensure that the nonprofit sector had a “seat at the table” via three newly-established entities at the Federal level. H.R. 7587 hoped to help nonprofits and the government work more effectively together to pursue common goals, increase the amount of data collected on the nonprofit sector, and streamline the processes by which nonprofits can fundraise and apply for grants. The United Philanthropy Forum and Independent Sector led and supported the legislation. SCG joined its partners and hundreds of other nonprofits, philanthropic organizations, and PSOs in taking a position of support on H.R. 7687 – solidifying the commitment to building a strong and thriving nonprofit sector that will allow us to continue to advance transformative change in our communities. Unfortunately, the bill died in Congress after being referred to the Committee on Oversight and Reform, the Committee on Education and Labor, and the Committee on Ways and Means.
Why It Matters
The nonprofit sector plays a critical role nationwide in helping people access resources and services, supporting the economic mobility of historically underserved communities, and identifying and responding to immediate and long-term needs. During the height of the COVID-19 pandemic, nonprofits continued to coordinate efforts and provide for their communities, even as they navigated economic hardship.
The pandemic made clear the need for the federal government to rethink how it can better support and collaborate with the nonprofit sector to help decrease the barriers to accessing funding and ensure that policies are created specifically with the needs of the sector in mind. Many nonprofits feel as though they are treated like an afterthought, often lumped in with small businesses but not afforded the same opportunities for funding or economic data collection to learn about growth in their sector. At the most basic level, the pandemic demonstrated why the nonprofit sector — which accounts for 6% of the country’s GDP and employs over 12 million workers — must have a voice and decision-making power at the federal level.