New Executive Order Restricts Voting Access and Nonprofit Advocacy Rights

President Donald Trump on March 25 signed an Executive Order that seeks to change the way federal elections are administered and targets federally funded nonprofits’ lobbying rights. It prioritizes enforcement of a federal statute that prohibits nonprofits and businesses from using federal funds to influence federal funding decisions.

But key parts of the EO are of highly questionable legal basis and it will likely be challenged in court, Nonprofit VOTE Executive Director Brian Miller and NC Center for Nonprofits Vice President of Public Policy and Advocacy David Heinen write in this blog post. 

Call Congress! Ask Them to Protect Nonprofits and Philanthropy in the Upcoming Tax and Spending Debate

Wondering how you can advocate for your organization and the nonprofit and philanthropic sector right now? Call your members of Congress and ask them to protect nonprofits in the upcoming tax and budget debate.

In the coming months, Congress will consider tax reform and budget proposals that could help—or harm—charitable nonprofits. Lawmakers can help nonprofits by co-sponsoring the bipartisan Charitable Act, (S. 317/ H.R. 801), which would create a non-itemizer, universal charitable deduction. Specifically, the bill would enable taxpayers who take the standard deduction (about 88% of taxpayers) to deduct charitable donations of up to one-third of the standard deduction, or about $4,500 for individuals and $9,000 for married couples based on the current standard deduction. 

And they can protect nonprofit nonpartisanship by preserving an important provision of the tax code requiring that, in exchange for tax-exempt status, a charitable nonprofit, foundation, or religious organization may not engage in partisan political activity.

Advocacy Step-by-Step

· Find your member at this link: https://www.usa.gov/elected-officials

· Tell them you are a constituent. Ask to speak to the tax staffer.

· Follow the script below:

· Ask them to protect nonprofits doing irreplaceable work in the district and state in

upcoming spending and tax debates.

· Keep the call to less than five minutes.

Need a Script?

· Explain what your organization does for constituents in the district and state.

· Share that you are professionals and volunteers working and serve the people in your district and state.

· Use 1-2 memorable numbers. Invite them for an on-site visit.

· Ask: “Can we have the representative/senator’s support in upcoming tax and spending debates that impact us and his/her constituents?”

AZIFG’s Qualifying Charitable Organization Tax Credit Bill Advances

The Arizona House Ways and Means Committee on March 26 passed AZ Impact for Good-supported legislation to aid qualifying charitable organizations on a party-line vote of 5-2, with two members absent.

Sen. J.D. Mesnard, R-Chandler, introduced SB 1496 – tax credit; qualifying charitable organizations at AZIFG’s request to clarify the qualifying charitable organization statute following the Arizona Department of Revenue’s publication last year of final Tax Credit Guidelines for Qualifying Charitable Organizations. 

In a February 2024 informational session, ADOR staff noted public comments they incorporated into the final guidelines, as well as those that would require amendments to the governing statute, ARS 43-1088.

AZIFG supports SB 1496 to help prevent certain QCOs from being decertified for technical reasons and to improve ADOR’s ability to administer the tax credit. The bill aims to:

• Ensure Donations to “Pass-Through” Organizations Continue to Qualify for the Tax Credit. It amends the definition of “Qualifying charitable organization” to include an organization that “directs” or spends at least 50% of its budget on services for low-income people. This change would allow donations to “pass-through” organizations—those that collect qualifying donations and then arrange for the delivery of services through outside providers (Delta Dental of Arizona Foundation, for example)—to continue to qualify for the tax credit. The Senate adopted a floor amendment adding a definition of “direct.”

• Clarify Definition of “Services.” The bill amends the definition of “Services” to apply to both QCOs and QFCOs to create parity between the two tax credits.



• Clarify “Job training services.” It modifies the definition of “Job training services” to include job “placement” and “work activities…and any other preparation and training used toward obtaining a high school equivalency diploma” to better describe the services relevant QCOs provide. 

During the hearing, a representative of a qualifying foster care organization spoke against the bill as currently written, citing concerns about changing the definition of “services” as described above. Sen. Mesnard, AZIFG, and Ways and Means Committee Chairman, Rep. Justin Olson, R-Mesa, committed to meeting with QFCO stakeholders about floor amendments to address those objections.

One member of the committee voiced concerns about SB 1496’s potential fiscal impact—something legislative staff have struggled to estimate—but voted yes to keep it moving.

Because tax credits affect state revenue, lawmakers will consider the bill in the context of fiscal year 2026 budget negotiations before it advances to the full House for consideration.