Washington, DC, Jan. 15, 2025 (GLOBE NEWSWIRE) -- Anticipating significant tax legislation in 2025, ASAE announced today the launch of the Community Impact Coalition — a unified initiative dedicated to educating 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 Trump administration. Members of Congress, their staff, and key influencers in Washington have turned their attention to a variety of potential resources that could be tapped for tax revenue in 2025 to fund priorities, including the resources of the entire 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,” said Steve Caldeira, President and CEO, Household & Commercial Products Association, a past Chair of ASAE and co-chair of the Community Impact Coalition. “Eroding the financial foundation of these organizations will have wide ranging and potentially dangerous ripple effects throughout the economy. The nonprofit community cannot stand by while these critical contributions that affect all Americans are jeopardized by punitive taxation. This is an existential threat to the tax-exempt sector and the vital services it provides.”
ASAE is joined by numerous highly respected trade associations, charities, and professional societies in committing financial support to the new coalition’s advocacy and communications efforts. In 2022, 501(c)(3) nonprofits alone accounted for 12.8 million jobs, 9.9% of private sector employment, according to the Bureau of Labor Statistics. Additionally, associations directly support more than 1 million jobs throughout the country.
“Faith-based and other charities and nonprofits have always been woven into the fabric of our nation,” said Brian Walsh, Executive Director, Faith & Giving. “The earliest commentators on America – most famously, Alexis de Tocqueville – underscored the necessity of guardrails between government and civil society. These guardrails preserve Americans’ ability to exercise their First Amendment rights to freedom of religion and association – and thus to support the charitable organizations we form without fear of government intervention. Moreover, if charitable organizations’ tax-exempt status does not remain protected, gaps in services and community support will only grow. As we face historic declines in both charitable giving and participation, now would be the worst time to impose new taxation that would undermine the charitable and nonprofit sector.”
“This challenge goes beyond associations—it strikes at the core of the industries, professions, and communities we serve,” said ASAE President and CEO Michelle Mason, FASAE, CAE. 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.”
About the Community Impact Coalition
The Community Impact Coalition is committed to ensuring lawmakers understand the value of 501(c) organizations and advocating against proposals that would eliminate their tax-exempt status. The Community Impact Coalition is supported by a wide range of trade associations, charities, and professional societies.
