News from the National Council of Non-Profits

Federal News

Senate Expected to Pass a Major Tax Package Directly Impacting Nonprofit Organizations

After months of debate and negotiations, the Senate is expected to vote today to approve the “One Big Beautiful Bill Act,” a major tax package that directly impacts the nonprofit sector and its ability to serve communities nationwide. For more details, see NCN’s full analysis of the bill and updated chart of tax provisions.

While the final bill includes both helpful and harmful provisions and is a marked improvement over earlier versions, it will ultimately reduce resources available to nonprofit organizations, negatively impacting their ability to provide essential services to their local communities. The bill creates a new universal charitable deduction that is estimated to generate approximately $74 billion over 10 years for nonprofit organizations. The bill also includes several provisions that disincentivize charitable giving by individuals and corporations, which are estimated to reduce resources for nonprofit organizations and their communities by at least $81 billion over 10 years. The bill also harms millions of people by taking away their access to healthcare and food assistance.

Because the Senate revised the bill, it will need to receive another vote in the House of Representatives before it can head to the President’s desk for his signature and enactment. The House is expected to vote on the bill before the July 4th holiday.

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Tax Reconciliation Package Chart

Chart tracking the changes from the House version to the Senate version of the tax reconciliation package and its impact on charitable nonprofits.

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Tax Reconciliation Package
One-Pager

Updated brief resource summarizing the impacts of the tax reconciliation package on nonprofits and calls to action.

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Tax Reconciliation Package Blog Post

Timely blog post summarizing the Senate bill and current successes seen in advocacy work.

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SCOTUS Limits Universal Injunctions

On the last day of its term, the U.S. Supreme Court issued an opinion limiting the ability of a single lower court judge to issue universal injunctions (sometimes referred to as “nationwide injunctions”). Universal injunctions have become a key legal tool to challenge unlawful actions by the executive branch, including two issued in response to litigation brought by the National Council of Nonprofits. The Court cited class action lawsuits as the better form of legal challenge for nationwide rulings, which can be more costly and time-consuming. “While disappointing and yet another obstacle to the ability of the American people to swiftly protect their Constitutional rights, the Court limited its decision and a number of pathways remain for individuals to obtain relief from the courts,” said Skye Perryman, President and CEO of Democracy Forward in a press statement.

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White House Signals Further Efforts to Cancel Federal Funding As Rescission Packages Advances in Congress

White House officials are signaling interest in using pocket rescissions to achieve some of the spending cuts identified by the Department of Government Efficiency (DOGE). The U.S. Government Accountability Office (GAO) found pocket recessions to be illegal, citing U.S. Supreme Court precedent. The move could trigger a legal battle over presidential powers. Under the maneuver, the White House would send a rescission request to Congress so that the deadline for congressional approval expires after the start of the new fiscal year on October 1. Senate Appropriations Chair Collins (R-ME) stated, “Pocket rescissions are illegal, in my judgment and contradict the will of Congress and the constitutional authority of Congress to appropriate funds.”

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In Focus: Congress Launches Investigations into Nonprofit Organizations

Earlier this month, several congressional committees and Members of Congress announced actions to investigate nonprofit organizations serving immigrant communities. Senator Hawley (R-MO), Chair of the Senate Judiciary Subcommittee on Crime and Terrorism, announced an investigation into nonprofit organizations involved in the Los Angeles protests. On the same day, the House Homeland Security Committee and its Subcommittee on Oversight, Investigations, and Accountability announced a probe into 215 nonprofit organizations working with immigrants. Senator Hagerty (R-TN) introduced legislation to revoke nonprofit status from organizations “facilitating illegal immigration.” NCN is closely monitoring these developments.

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Federal FastView

SCOTUS Decision to Protect Religious Tax Exemption: Earlier this month, the U.S. Supreme Court ruled unanimously in Catholic Charities Bureau, Inc. v. Wisconsin Labor and Industry Review Commission that the State of Wisconsin impermissibly denied unemployment insurance tax exemption to a religiously-affiliated nonprofit because it did not proselytize nor limit services to its congregants.
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HHS Seeks Comments on Regulation Cuts: The Department of Health and Human Services (HHS) published a Request for Information seeking “input from the American public on how to dramatically deregulate across all the areas the Department touches,” which it calls “the largest deregulatory effort in its history,” as part of the Administration’s efforts to eliminate many federal regulations. Comments are due by July 13, 2025.
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USPS SERVES US Act: Rep. Sam Graves (R-MO) introduced the USPS SERVES US Act (H.R. 3004) to require the Postal Regulatory Commission to keep rates within price caps, ensure accountability for meeting performance targets, and limit rate increases to no more than once a year. Nonprofit mailers have already borne the brunt of rising postal costs. Without action, nonprofit customers may be paying 50-60% more than they did before the rate hikes began a few years ago.
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Senate Confirms Billy Long to Lead Internal Revenue Service (IRS): The Senate voted along party lines to approve the nomination of Billy Long to lead the IRS.
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Charitable Giving Increased in 2024

The latest data from Giving USA on charitable giving in 2024 show that total giving increased to $592.5 billion and the 6.3% increase outpaced inflation increases for the first time in three years. Giving by individuals, foundations, and corporations increased, while bequests decreased by 4.4% after adjusting for inflation. Subsectors that saw increases in giving were education, health, arts, culture & humanities, and environment/animals.

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State and Local News

New Laws Going into Effect

Alaska: The state minimum will increase to $13 per hour due to a ballot measure passed in 2025.
Indiana: Employers cannot retaliate against workers that take time off from work to attend school conferences.
Vermont: Employers with five or more employees must include wage ranges in job postings.
Washington: As of July 27, the state’s paid sick leave will include time off for employees to “prepare for, or participate in certain, any judicial or administrative immigration proceeding involving the employee or employee’s family member.”

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Pending Legislation Affecting Charitable Nonprofits

Delaware: The House passed a bill that would require state-based employers with 25 or more employees to disclose compensation information.
Illinois: A bill would authorize the State Treasurer to establish and administer a nonprofit investment pool.
Rhode Island: Pending legislation would require employers to provide new employees a written notice with pay rates, calculations, and leave.

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Read the online version of the newsletter for greater context and help you frame the debate.

Nonprofit Library

On charitable giving incentives

Let’s Make Sure the Tax Bill is Big and Beautiful for Nonprofits, Too, Oklahoma Center for Nonprofits, June 24, 2025.

Is the Good News From ‘Giving USA’ Momentum for 2025?, Chronicle of Philanthropy, June 24, 2025, quoting Jim Klocke, CEO of the Massachusetts Nonprofit Network.

Charitable Giving Coalition Applauds $592 Billion in Giving in 2024, Calls on Congress to Expand and Protect Incentives for Donors, Charitable Giving Coalition, June 24, 2025.

On the importance of nonprofits

Opinion: Why nonprofits deserve our protection — and our action, Deseret News, Jill Bennet, CEO of Utah Nonprofits Association, June 16, 2025.
Nonprofits are Essential to Kentucky – And They Need Our Help, Kentucky Nonprofit Network, May 28, 2025.

On budget reconciliation

Letter to Senate Leaders on Reconciliation Updates, signed by National Council of Nonprofits, Independent Sector, Council on Foundations, and United Philanthropy Forum, June 20, 2025.
UPDATED: National Joint Letter to Congress, signed by nearly 2,300 organizations, updated June 19, 2025.
New Research: Congressional Tax Proposals Would Eliminate Billions in Charitable Giving, Independent Sector, June 26, 2025.

Big Beautiful Bill’s Ugly Impact On Corporate And Foundation Giving, Forbes, June 9, 2025, explaining the various giving provisions in the tax bill.
Treasury Considers Ending Tax-Exempt Status for Colleges That Consider Race, Todd Gillespie and Janet Lorin, Governing, June 12, 2025.
Letter to Congress, Evangelical Council for Financial Accountability and more than 650 Leaders in Faith-Based Organizations, June 18, 2025, explaining how the unrelated business income tax on transportation benefits was a failure in 2017 and should not be resuscitated.

On federal policy affecting nonprofits

EO Impact: Is There an Existential Threat to Nonprofit Status?, American Alliance of Museums, June 26, 2025.

On nonprofit data

2025 State of the Nonprofit Sector Survey, Nonprofit Finance Fund, June 2025.
National Taxpayer Advocate Objectives Report to Congress Fiscal Year 2026, Office of the Taxpayer Advocate, June 2025.

Advocacy in Action

The Impacts of Lobby Days

Lobby Days at the federal, state, and local levels are invaluable opportunities for nonprofits to be involved in the legislative process and influence policies that affect them and their communities. Meetings with elected officials and staff also give nonprofits more moments to share their mission and impact while strengthening relationships. Lobbying is one form of advocacy and the ongoing conversations in Congress show why nonprofits should continue to do it to make a difference.