A New Federal Agency for Nonprofits?

This week Rep. Betty McCollum (D-Minn.) introduced “The Nonprofit Sector and Community Solutions Act” (H.R. 5533). The purpose of this bill is to improve coordination between the nonprofit sector and the federal government by establishing a bipartisan, 16-member U.S. Council on Nonprofit Organizations and Community Solutions, as well as the Interagency Working Group on Nonprofit Organizations and the Federal Government. It would also compile data on the health of the nonprofit sector.

Currently no federal agency or congressional committee has responsibility for evaluating, building, or maintaining the capacity of the nonprofit sector.

According to Diana Aviv, CEO and President of Independent Sector, the federal legislation would: “produce annual reports and recommendations and convene summits; create interagency coordination by being located in the White House (e.g. similar to the Social Innovation Fund); and require the Department of Commerce to collect the kind of data it compiles about the for-profit sector and make it available to the nonprofit sector.” Data provided by the Bureau of Labor Statistics would include nonprofits as a distinct category of employer.

Rep. McCollum stated, “Even though the nonprofit sector plays a critical role in the success of federal, state and local programs, the federal government currently has a minimal relationship with it. The bill aims to not only build a strong relationship between the federal government and the nonprofit sector but also give the nonprofit sector a voice to raise concerns and propose solutions to our nation’s challenges.”

To read more about the legislation, click here: http://www.councilofnonprofits.org/nscsact.

To read Congresswoman McCollum's press release click here:http://mccollum.house.gov/index.php?option=com_content&task=view&id=948&Itemid=146.

Read below for more specific details about the bill:

• Working Group
  • Study how the federal government can “work more effectively with  nonprofits to achieve better outcomes in addressing national and community challenges”
  • Will include: head of the White House Office of Faith-based and Neighborhood Partnerships, head of the Office of Social Innovation and Civic Participation, CEO of the Corporation for National and Community Service (CNCS), Internal Revenue Service commissioner, and chairman of the National Endowment for the Humanities and the chairman of National Endowment for the Arts, director of the Census and the director of the Office of Management and Budget.
  • Chairman of the working group will be a nonvoting member of the Council
• Council
  • Charged with providing cabinet members, White House officials, and heads of federal agencies “a venue to eliminate conflicting and inconsistent federal policies that relate to nonprofits”
  • Of the 16 members, five would be appointed by the president, three by the House majority leader, two by the House minority leader, three by the Senate majority leader and two by the Senate minority leader
  • Members of the council would have experience or expertise in management, operation or support of nonprofits, social entrepreneurship and innovation, philanthropy, qualitative and quantitative research, or management and operation of businesses.
  • Members of the council would be unpaid
• Report on Health of Nonprofit Sector:
  • Existing federal agency would be tasked with compiling data on nonprofits and developing metrics for performance, establishing reporting requirements, and expanding information to better inform Congress on the impact of nonprofit organizations
  • Creates a $5 million federal matching grant program to promote research on improving data collection, enhancing the effectiveness of nonprofit organizations, and building the capacity of nonprofits for greater performance

Source: Nonprofit Times