We’ve heard concerns from our community regarding H.R. 9495 and how it might affect nonprofit organizations. While the bill stalled in the U.S. Senate, similar proposals could resurface. At Community Initiatives, we remain informed and prepared to support our projects through any regulatory shifts.
Key Facts About H.R. 9495
H.R. 9495 proposed granting the Treasury Secretary unilateral authority to revoke the tax-exempt status of nonprofits suspected of supporting terrorist organizations.
- Concerns Raised: Critics argued that this broad authority could be used to chill free speech and disproportionately impact nonprofits providing humanitarian aid in politically sensitive regions.
- Existing Safeguards: Current laws, such as the Patriot Act and IRS Section 501(p), already allow for action against organizations with ties to terrorism but include additional procedural safeguards.
- Ongoing Scrutiny: While this bill has not passed, the current political climate suggests that nonprofits—particularly those engaged in DEI, humanitarian aid, and advocacy work—may continue to face increased scrutiny.
How We’re Addressing These Concerns
Community Initiatives is committed to ensuring compliance with all laws while doing our best to safeguard the sustainability of the projects we support. Our processes and systems are designed to protect our projects’ viability, and we are actively monitoring legislative developments to stay ahead of potential risks.
While we can’t predict the future of nonprofit regulations, we encourage our projects to stay informed, follow best practices, and proactively engage with expert guidance from our Client Services and Legal team.
Resources to Stay Informed
For further insights on H.R. 9495, we recommend expert perspectives such as those shared by Gene Takagi on the Nonprofit Law Blog. The National Council of Nonprofits has also created a General FAQ on Executive Actions Impacting Nonprofits, which is an excellent resource.
Additionally, our projects are encouraged to access resources available to them in the Project Portal for ongoing updates and resources related to the nonprofit sector.
Community Initiatives is here to be In Service to Great Ideas. Inquire today to learn how fiscal sponsorship can be a sustainable vehicle to lead a charitable endeavor in your community.