As Congress undertakes one of the most sweeping tax and spending reform efforts in recent memory, the voices of associations have played a pivotal role in shaping the legislative process. With the expiration of key provisions from the 2017 Tax Cuts and Jobs Act looming, lawmakers are working to extend these measures while advancing many of the president’s domestic policy priorities through a comprehensive bill. 

ASAE Coalitions Lead the Charge 

Two coalitions organized by the American Society of Association Executives (ASAE) have been at the forefront of advocacy on Capitol Hill: The Community Impact Coalition and Tomorrow’s Workforce Coalition. These groups have mobilized hundreds of nonprofit organizations and associations to ensure that the unique needs and contributions of the nonprofit sector are recognized in the tax reform debate. 

The Community Impact Coalition: Protecting Nonprofits 

The Community Impact Coalition, representing over 100 nonprofit organizations, has worked tirelessly to educate lawmakers about the vital role nonprofits play in American society. In January, ASAE launched this coalition to advocate for nonprofit organizations faced with the threat of a significant increase in their tax burden. Through meetings, letters, earned media, advertising, and grassroots campaigns, the coalition successfully advocated for the removal of several problematic provisions from early drafts of the reconciliation bill that would have increased taxation of nonprofits. These provisions included: 

• Taxing nonprofit organizations’ expenses on parking and transportation fringe benefits 
• Applying a tax to royalties generated from a nonprofit’s name and logo 

By highlighting the ways in which these measures would divert resources away from nonprofit organizations dedicated to serving their communities, the coalition ensured that lawmakers understood the broader impact on activities that benefit the public good and promote societal well-being. 

Tomorrow’s Workforce Coalition: Investing in Career Growth 

The Tomorrow’s Workforce Coalition, which now includes over 900 member organizations, has focused its advocacy on the inclusion of the Freedom to Invest in Tomorrow’s Workforce Act in the reconciliation bill. This bipartisan provision would expand qualified expenses under 529 savings plans to cover postsecondary training and credentialing, such as licenses and nongovernmental certifications. The change would provide valuable tax-advantaged resources to workers seeking career advancement, mid-career changes, or alternative pathways, helping to build a more resilient and adaptable workforce. 

Grassroots Advocacy and Ongoing Efforts 

Both coalitions have demonstrated the power of coordinated advocacy, drafting letters, holding meetings, and sending thousands of grassroots messages to lawmakers to ensure that the final tax bill contains positive policies that would support the work of associations and bolster the nation’s workforce. As Congress aims to complete the legislation before August, ASAE’s coalitions remain committed to representing the interests of the nonprofit sector throughout the legislative process. 

Beyond the current legislative debate, some members of Congress and outside voices will continue to raise the threat of increased taxation on associations and other nonprofits. ASAE is implementing strategies to continue the coalition’s efforts aimed at educating lawmakers about the critical role associations play in lifting up communities and growing the economy. 

In this critical moment, the collective efforts of associations are ensuring that the voices of the nonprofit community are heard — and that tax policy continues to support their essential work.