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Policy Update: Supreme Court Ruling, Infrastructure Bill & More

Policy Update: Supreme Court Ruling, Infrastructure Bill & More

Nonprofit Connect works to keep Members updated on policy changes that affect nonprofits through Policy Updates. These messages provide brief information on what is going on in federal government and policy that may be of interest to the nonprofit community.

Supreme Court Rules 6-3 in Favor of Donor Privacy for California Charities
The case before the Supreme Court challenged a California state law that required charities soliciting contributions in the state to report the identities of their major donors. The majority opinion, written by Chief Justice John G. Roberts Jr. said the law violated the first amendment’s protection of the freedom of association. The three dissenting liberal judges were concerned the decision could erode disclosure laws concerning political campaigns, too.
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Bipartisan Agreement Reached on $1 Trillion Infrastructure Bill
On June 24th, President Biden announced his support for the Senate-negotiated Bipartisan Infrastructure Framework, which would invest in roads, bridges and other traditional “hard” infrastructure projects. Notably, clawing back some of the Coronavirus State and Local Fiscal Recovery Funds is not included as a method for paying for the bill. The President, however, also stated he would abandon the compromise if other Democratic spending priorities, such as shoring up the social safety net, were not sent to him in a second bill.
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Advocacy Opportunity - Governments Making Decisions about Spending Coronavirus State and Local Fiscal Recovery Funds
State, county, and city governments have discretion in how to appropriate Coronavirus State and Local Fiscal Recovery Funds provided by the American Rescue Plan. The Council of Nonprofits released a report with guidance to governments and solutions for nonprofits seeking support from these funds. Nonprofits can use this report to advocate for investment in local nonprofits and nonprofit programs as part of COVID-19 recovery.
View the report.

New Legislation would Impact Donor Advised Funds (DAFs)
S. 1981, the Accelerating Charitable Efforts (ACE) Act, would modify existing rules for DAFs, make changes to the rules for the excise tax on undistributed income of private foundations, and exempt certain private foundations from the excise tax on investment income. Supporters argue the bill is necessary to make philanthropic funds available to working nonprofits within a more reasonable period of time. Opponents argue DAFs have been a lifeline for charities during the pandemic and there is no evidence that these restrictions are needed to ensure philanthropic dollars are reaching nonprofits. The bill has not yet had a hearing.
Learn more.

This post was written by Kristen Wood, Nonprofit Connect's Advocacy Contributor.
Kristen is an avid participant in Kansas City’s nonprofit community and a self-proclaimed ‘lifetime learner’. In addition to working for Goodwill of Western Missouri & Eastern Kansas, she enjoys following nonprofit policy issues.

If you have any questions on Policy Updates, please reach out to Nonprofit Connect’s Marketing Manager, Colin Bennett, at cbennett@npconnect.org.


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