Anticipating significant tax legislation in 2025, ASAE launched the Community Impact Coalition, an initiative intended to educate members of the 119th Congress about the social and economic benefits of associations, charities, and other tax-exempt organizations.
With Republicans assuming control of the White House, Senate and House of Representatives, GOP leaders have signaled that they will prioritize tax reform within the first 100 days of the new administration of President Trump. Members of Congress, their staffs and key influencers have turned their attention to a variety of potential resources that could be tapped for tax revenue to fund priorities, including the resources of the 501(c) community. Concerns are rising that tax-exempt organizations may be at risk with some calling for a 21% corporate tax rate on all net, non-donation income.
“Associations and other nonprofit organizations are granted tax-exempt status by the IRS to encourage and support activities that benefit the public good and promote societal well-being. Their tax-exempt status strengthens lives by providing services and responding in countless ways where the government and for-profit businesses cannot. Through volunteerism, creating industry standards, advancing medical research, supporting veteran’s-related groups, and providing aid following natural disasters, nonprofits serve critical roles in the daily lives of every American,” Steve Caldeira, president and CEO, Household & Commercial Products Association, a past chair of ASAE and co-chair of the Community Impact Coalition, said in a statement.
The coalition launched with 58 trade associations, charities, and professional societies. All have committed financial support to the coalition’s advocacy and communications efforts. In 2022, 501(c)(3) nonprofits accounted for 12.8 million jobs, 9.9% of private sector employment, according to the U.S. Bureau of Labor Statistics. Additionally, associations directly support more than 1 million jobs throughout the country, according to data from ASAE.
“This challenge goes beyond associations. It strikes at the core of the industries, professions, and communities we serve,” ASAE president & CEO Michelle Mason, FASAE, CAE, said in a statement. “Through the Community Impact Coalition, we aim to further educate policymakers about our sector’s vital role. Nonprofits uniquely leverage their expertise to solve complex challenges that would otherwise fall to government, reinvesting revenues directly into their missions to drive lasting impact across society.”