I loved Saturday morning cartoons, and one of my favorites was “SchoolHouse Rock” – especially the classic episode “I’m Just a Bill.” Many of us learned how the legislative branch works (or sometimes doesn’t) by watching this episode in our social studies classes. Right now, we’re living that episode in real life. As you likely have heard, the U.S. House of Representatives passed its version of the “One Big Beautiful Bill Act” and has sent it to the Senate for consideration. Senators are now weighing the impact of the bill – especially on their states – and closely listening to constituents.
What’s in the Bill and Why It Matters to Nonprofits
Nonprofit champions – including the National Council of Nonprofits – have flagged concerning provisions that could significantly affect the nonprofit sector. Here is a breakdown:
Charitable Giving
- New and expanded taxes on foundations and nonprofits could divert resources away from essential services.
- New limits to charitable donations could discourage donations by corporations and individuals.
Some senators are concerned and are pushing for expanded tax incentives for charitable giving instead.
Medicaid and Social Support Programs
- Cuts to Medicaid would impact 13.7 million recipients, potentially increasing costs for local and state governments as individuals rely on hospital emergency rooms for healthcare.
- Reductions to the Child Tax Credit, limiting support for low-income families, could mean less money available for household necessities that support strong families.
- A 30% cut to Supplemental Nutrition Assistance Programs (SNAP) could increase pressure on local food banks already struggling to assist families, seniors and Americans who have been recently laid off.
For more detailed analysis or the latest update, go to the National Council of Nonprofits briefing page.
What You Can Do
Step 1: Educate Yourself
My ask today is that you spend 5 minutes educating yourself on the bill’s provisions and how they might impact you and your work. The National Council of Nonprofits does a great job of summarizing everything so you can make an informed decision as an individual or organization.
Step 2: Take Individual Action
Take it from a former lobbyist – senators want to hear from their constituents about local impact and how to balance community needs with economic stability. While the bill aims to reduce federal spending in the short term, it could increase pressure on the social sector (e.g., local governments, hospitals, donors) to pick up the tab in increased costs for the long term. Some provisions could also reduce charitable donations, which is a double hit. As nonprofit leaders, your stories of impact and return on investment are powerful tools – sharing them with your senators can help shape better policy.
A number of leading philanthropic organizations (e.g., Council on Foundations, Independent Sector, National Council of Nonprofits and United Philanthropy Forum) have developed a letter you can sign about the tax provisions that could hurt the social sector:
For Medicaid, SNAP and other rollbacks, learn more and consider signing onto letters from advocacy groups, such as NAMI, AARP, Feeding America and others.
Step 3: Consider Collective Action
We have spoken many times about why nonprofits should consider advocacy as a strategy. Now is an apt time to consider this in your upcoming strategic plans or retreats. Here are some throwbacks to assist you:
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- Elevating Policy as a Priority: How Advocacy Adds Value to Your Organization & the Greater Good
- Why Now Is the Perfect Moment to Showcase Your Nonprofit to Policymakers
- The Five C’s of an Effective Policymaker Meeting
- Can Nonprofits Lobby? The Answer is YES!
- How Coalition Building and Grassroots Campaigns Can Boost Your Nonprofit’s Advocacy
Now is the time to review this bill, reflect on its implications for your community, and decide how your agency will engage in advocacy efforts. If you have any questions, please let us know.
Excellent article, Suzanne. Very practical and allowed me to easily take action! Thanks.