The Roundtable is proud to support the Safeguarding Charity Act (H.R. 2896, S.1428), which will protect nonprofit organizations from government overreach. All too often, nonprofits that do not seek out government funding are targeted for their very existence.
This vital legislation, introduced by Rep. Greg Steube (R-FL) and Sen. James Lankford (R-OK) would reaffirm that the unique tax status of nonprofit organizations does not equate to accepting government funding. Regardless of who occupies the White House it is essential to safeguard the independence of nonprofit organizations that are not over-reliant on government funding and ensure they are not subject to unnecessary government requirements.
Importantly, this legislation would also protect nonprofit organizations and religious institutions from heavy-handed judicial activism seeking to redefine their status for political reasons. Freedom of association is a constitutional right and a cornerstone of American society, and it must be safeguarded. Nonprofits are the embodiment of private individuals coming together to address challenges in our communities.
As we noted in our support of this bill in the last Congress:
“In Buettner-Hartscoe v. Baltimore Lutheran High School and E.H. v. Valley Christian Academy, the courts ruled tax-exempt status is a form of federal financial assistance. These decisions threaten tax-exempt organizations such as charities, private schools and churches with the unnecessary regulatory burden traditionally reserved for entities that receive government assistance.
These rulings not only contradict legal precedent and congressional intent, they threaten a wide range of tax-exempt organizations that do not accept federal financial aid. The Safeguarding Charity Act would clarify that tax-exempt status alone does not meet the definition of federal financial assistance.”
Nonprofits throughout our country fill critical gaps and deliver services quickly to those who need them most. While President Donald Trump and his team are doing necessary work to rein in out-of-control government spending, it’s more important than ever that Americans remain free to form associations and advance the causes they care most about. This bill is an important step in advancing that goal. We thank Steube and Lankford for their unwavering dedication to ensuring our nation’s nonprofits can continue to do their important work free of government intrusion.
