A Day on the Hill

Advocating for Nonprofit Associations

In 1830, French statesman and author Alexis de Tocqueville toured the United States, trying to understand why democracy was so successful in this young country. He concluded that the American form of government, and the engaged populace that supported it, worked because Americans were forming associations. 

Recently, I had the privilege of representing Indiana at an annual Day on the Hill event organized by the American Society of Association Executives (ASAE). Alongside three association executive colleagues, we joined forces with other ASAE members to advocate for the importance of nonprofit associations.

During our time in Washington, D.C., we participated in more than 170 meetings with members of Congress and their staff. These meetings were an opportunity to discuss the significance of nonprofits and to stress the importance of their tax-exempt status.

Nonprofit organizations gain tax-exempt status by serving the public good. Our associations support needs of the general public and professionals in all industries, vocations, and avocations. Without nonprofits, many essential services would fall to the government to address. Professional development opportunities required for professional licenses, offered only by for-profit businesses, would become so expensive as to be out of reach for some workers. Nonprofits respond in countless ways where the government and for-profit businesses can’t or won’t.

After the event, many of my colleagues expressed surprise that so many of the legislative staff did not understand that nonprofits actually do pay federal, state, and local taxes. Nonprofit organizations are heavily regulated and transparent. We comply with numerous other IRS requirements to ensure we are not maximizing profits for stakeholders, and instead support the mission, vision, and values of our clients and members. 

Congress is putting the final touches on a tax package that will likely be announced in the coming weeks. It is paramount that the association community continues to advocate for all nonprofits. My Day on the Hill with association colleagues was a powerful reminder of the impact that dedicated advocacy can have.