Public Policy Director
Minnesota Council of Nonprofits
Wide, diverse set of Minnesota’s nonprofit organizations aligned against harmful federal tax bill
The Minnesota Council of Nonprofits (MCN), representing over 2,000 nonprofits, is categorically opposed to this federal tax bill. Minnesota’s nonprofit community, a sector that employs nearly 12 percent of Minnesota’s workforce and partners with millions, is aligned in its opposition to the harmful and unprecedented tax bill.
“The harm caused by this tax proposal will be dramatic, particularly to children, retirees, people with disabilities, workers, and families,” says Rebecca Lucero, Public Policy Director for MCN. “And it is a perfect storm for nonprofits which is hurt by changes that reduce charitable giving and a repeal of the Johnson Amendment.”
Repealing, or even just weakening the Johnson Amendment, which prohibits tax-exempt nonprofits from participating in political campaigns, will undermine the promise of nonpartisanship within the nonprofit community.
The repeal of restrictions on political activity by any tax exempt organization is problematic. The government should not be providing exemptions for dollars used to campaign in support of or in opposition to a candidate for public office or a particular political party. Taxpayers should not be subsidizing electioneering.
It is in the best interest of the nonprofit sector, and the communities we partner with, for 501(c)(3)s to remain nonpartisan. The Johnson Amendment helps to assure our donors, volunteers, and communities that nonprofits are acting out their missions, not serving political ends.
With trillions of dollars over the next decade at risk and impacts spanning all sectors, the tax bill under consideration and the budget resolution passed earlier this fall have vast negative consequences that will affect millions of Minnesotans well into the future. Minnesota’s nonprofit community agrees this tax bill does not represent the values of Minnesotans, and urge Congressional representatives to reject it.