11/14/2024

ASAE is Building Support for an Industry Tax Reform Coalition

OSAP is committed to helping our members challenge nonprofit tax changes

As Congress prepares to pursue major tax legislation next year, the American Society of Association Executives (ASAE) has formed a Tax Reform Coalition to aggressively defend the tax-exempt sector from increased taxation.

With sweeping tax breaks established in the 2017 Tax Cuts and Jobs Act (TCJA) set to expire in 2025, major tax changes are undoubtedly on Congress' agenda next year.

• Congressional leaders on both sides of the aisle have called for next year’s tax package to be fully funded at a cost of $3-4 trillion.

• ASAE is sounding the alarm that the tax-exempt sector could be targeted by lawmakers to help offset the cost of tax legislation.

Some legislators and policy think tanks have called for taxing all tax-exempt organizations across the board, applying the 21 percent corporate tax rate to all non-donation net revenue. Membership dues, sponsorships, investment income and educational program revenue are only a few examples of what is potentially at risk.

House Speaker Mike Johnson (R-LA), who was nominated this week to retain the speaker’s gavel, and Sen. John Thune (R-SD), who was elected the next Senate majority leader, both have prioritized tax legislation next year.

• ASAE is positioned to invest $1 million in strategic advocacy and communications counsel in this tax fight.

• ASAE is seeking additional contributions from coalition members to ensure a full-throated industry response to this threat.

• Read more about the coalition and membership levels.

Go deeper: Read more about this important issue in the Associations Now article, The Looming Threat to Associations of Tax Reform.

This article was provided to OSAP by ASAE's Power of Associations and Inroads.