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Combined Federal Campaign (CFC) Update
The Trump Administration announced recently that it had planned to decommission the CFC charity portal this week. The National Council of Nonprofits learned that they will temporarily keep the portal open until today to allow nonprofits to download their resources and materials. Please continue to let your members of Congress know if you oppose this decommission.
Proposed Changes Harming Federal Grantees and Their Communities
The General Services Administration (GSA) has proposed changes to the System for Award Management (SAM). The GSA is proposing to require all federal grantees, including nonprofits, to sign new certifications as a prerequisite to apply for or receive federal financial assistance. For more information, read the proposed changes and supporting materials.
If implemented, the proposed changes would directly impact nonprofits, state and local governments, tribes, and other entities that apply for or receive federal financial assistance, including discretionary, mandatory, block, and formula grants, cooperative agreements, loans, insurance, and direct appropriations.
Under the proposed changes, applicants and recipients of federal financial assistance would be required to sign new certifications under penalty of criminal and civil law. These certifications align with President Trump’s executive order and the U.S. Department of Justice guidance, which misrepresents “illegal” diversity, equity, and inclusion (DEI). The revised certification also includes provisions on undocumented immigration and anti-terrorism.
The proposed changes are vague and complex, making it nearly impossible for nonprofits to know whether they are in compliance. Moreover, it exposes nonprofits to possible legal harassment by the Administration. Nonprofits wrongfully accused would have to spend an enormous amount of staff time and resources defending themselves in audits, investigations, and court. With the new certifications, nonprofits may decide that it is not worth the risk and will forgo applying for federal funds altogether, leading to service disruptions. Ultimately, the proposed rule will harm the people and communities that rely on nonprofit organizations and the essential services they provide.
ACTION ALERT: The public has until March 30 to submit public comments in opposition to the proposal. The National Council of Nonprofits has created several tools to help you make your voice heard.
Treasury Proposes to Collect COVID-Era Program Information
The U.S. Department of Treasury is proposing to require grantees of American Rescue Plan Act (ARPA), including states, territories, local governments, Tribes, nonprofits and others, to report retroactively on personal identifiable information (PII) for beneficiaries of the funds. If implemented, the changes would require grantees to report to Treasury PII - including addresses, phone numbers, and social security numbers, for example - for staff, board members, and community members. The deadline to submit public comments is March 6.
This change, if implemented, would place an enormous administrative burden on grantees. Many COVID-era programs were designed to streamline and expedite the delivery of federal resources, while keeping reporting requirements to a minimum. Most grantees have already expended their COVID-era funds, so there are no new resources to offset the costs to collect such data. Moreover, there is concern that this effort comes at a time when the Trump Administration has increased its focus on alleged claims of fraud and abuse.
For more information, see these resources:
DOL Issues Proposed Rule on Worker Classification
Last week, the U.S. Department of Labor (DOL) published a proposed rule on the Federal Register that would make it easier for employers – including both nonprofits and businesses – to classify many of their workers as independent contractors instead of employees under the Fair Labor Standards Act (FLSA).
The proposed rule, which would be the third change in DOL worker classification regulation in the past six years, would establish two “core factors” in determining whether workers are employees or independent contractors:
- The nature and degree of control over the work; and
- The worker’s opportunity for profit or loss based on initiative and/or investment.
Other factors – including the amount of skill required for work, the degree of permanency of the working relationship, and whether the work is an integrated unit of production – would carry less weight in assessing worker classification. The proposed rule is very similar to a previous DOL worker classification rule that took effect at the beginning of 2021.
The current DOL worker classification rule, which took effect on March 11, 2024, uses a six-factor “economic realities” test that considers:
- Opportunity for profit or loss depending on managerial skill;
- Investments by the worker and the employer;
- Degree of permanence of the work relationship;
- Nature and degree of control by the employer;
- Extent to which the work performed is an integral part of the employer’s business; and
- The worker’s skill and initiative.
Nonprofits, businesses, and others can submit public comments on the proposed rule through April 28th.
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