H.R. 9495 Update
NAO has been closely monitoring the progress of H.R. 9495, the “Stop Terror-Financing and Tax Penalties on American Hostages Act,” since it was passed by a narrow margin in the U.S. House last month. While this bill intends to provide relief for hostages of terrorism, it would also grant the Secretary of the Treasury the authority to revoke the tax-exempt nonprofit status of any organization deemed a supporter of terrorism with minimal due process and without disclosing evidence. The burden of proof would be on the nonprofit to disprove any allegations of terrorism. This broad and unchecked power raises serious concerns about potential political misuse, threatening nonprofits engaged in legitimate humanitarian missions, both domestically and internationally.
While this bill has understandably drawn significant attention from the nonprofit sector, and speculation about its potential trajectory and implications has been running high, NAO recognizes that further legislation movement this year and next is highly unlikely.
Our partners at the National Council of Nonprofits recently released a statement on the issue, emphasizing that “the action alerts and advocacy from the charitable and philanthropic communities have turned an under-the-radar bill into an extremely controversial and high-profile measure that cannot advance without generating even greater outrage. Thanks to that advocacy to date, the proponents of the legislation have very few – if any – realistic options for securing enactment of the bill either this year or next; significant procedural burdens and the very slim margins in the House and Senate make passage virtually impossible.”
Legislation such as H.R. 9495 provides a sobering glimpse into the types of challenges that the nonprofit sector could face in the future. The Nonprofit Association of Oregon remains vigilant and committed to protecting the integrity and mission of our sector. We will continue to advocate for positive policy solutions while standing firm against any attempts to undermine the critical work of nonprofits in our communities.
Credit goes out to CalNonprofits and the National Council of Nonprofits for sharing this message.
Federal Government Faces Potential Shutdown
The federal government faces a pending shutdown at 12:01 a.m. this Saturday if Congress does not pass a continuing resolution. The original deal was scuffled after President-elect Trump and Elon Musk rejected it publicly despite a bipartisan agreement. There is a new proposal on the table that was just released this afternoon by House Republicans. It’s too soon to tell if there is support for it. The proposal would fund the federal government through mid-March 2025 and include raising the debt ceiling.
Congress Passes Hurricane Relief Package Without Nonprofit Tax Incentives
President Biden signed into law a package of legislation to provide relief for communities hit hard by hurricanes this year. The package did not include reinstating the non-itemizer tax deduction as proposed in one of the earlier companion bills. The National Council of Nonprofits has been told that the legislation will be reintroduced in the next Congress.