• Defending Nonprofit Nonpartisanship: For nearly 70 years, an important provision in the federal tax code Section 501(c)(3), sometimes called the Johnson Amendment, has provided that in exchange for tax-exempt status, a charitable nonprofit, foundation, or religious organization may “not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.” This language serves to protect charitable nonprofits, houses of worship, and foundations – and the donating public by ensuring organizations dedicated to the public good remain above the political fray. Nonprofits operate as safe havens from the caustic partisanship that is bedeviling our country, places where people can come together to solve community problems. Repeal or revision of the law would damage the integrity and effectiveness of all charitable nonprofits and foundations.  Click here for KNN’s one-page summary on why this matters to nonprofits. And click here to learn about KNN’s opposition to the “Free Speech Fairness Act” (S.1205/H.R. 2501).
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• Protecting Nonprofits from Executive Overreach: While language based on the Stop Terror- Financing and Tax Penalties on American Hostages Act (H.R. 9495) was removed from the tax bill, KNN and our state association partners remain vigilant on its return in separate legislation. The law would give unprecedented authority to the Executive Branch to revoke tax- exempt status from charitable nonprofits without due process or basic protections. While nonprofits unequivocally oppose terrorism in all forms, any enforcement action must be grounded in transparency, evidence, and the rule of law. If enacted, the provision could allow any Administration targeting nonprofits based on ideological grounds. Click here to learn more.

• Charitable Giving Tax Incentives: Kentucky’s charitable nonprofits continue to experience growing demand for their services, yet costs continue to rise due to inflation while private donations and the number of donors are declining. The new federal tax bill includes both good news and bad news for charitable giving tax incentives. The language used in the tax bill is based largely on The Charitable Act (H.R. 801/S. 317), which was co-sponsored by Kentucky Congressmen Andy Barr, Brett Guthrie, and Morgan McGarvey.

• Protecting Nonprofits in the Tax Debate: Congress recently enacted and the President has signed into law one of the most consequential tax bills in a generation. KNN worked in partnership with the National Council of Nonprofits and our state association colleagues around the nation to promote fundamental tax policy proposals that enhance the abilities of organizations to advance their missions in communities while working to ensure that adverse policies, including benign proposals with identifiable, adverse consequences, are not adopted.  Click here for a summary of the good news and bad news for nonprofits in the final tax bill.
  • One-pager on our top priorities
  • Letter sent to KY Senators and national letter sent to all Senators
  • Updated analysis of the tax bill
  • Chart of the tax provisions

Protect Nonprofit Partisanship

Nonprofits Get it Done. Across the country, nonprofits step in where no one else can or will. But now, some policymakers are questioning the integrity of the sector, jeopardizing funding for vital services.