As Congress prepares to debate the expiration of the 2017 Tax Cuts and Jobs Act (TCJA), the tax-exempt sector faces a significant threat. Major think tanks have called for taxing 501(c) organizations, and with a $4.6 trillion tax cliff looming, lawmakers are increasingly scrutinizing the sector as a potential source of revenue. These are the initial ways to raise federal revenue identified by House Republicans on the Budget Committee. There will be more.

To combat this threat, the American Society of Association Executives [ASAE] is forming a coalition of tax-exempt organizations to take an aggressive stand against all proposals that would burden 501(c) organizations with increased taxation. ASAE is positioned to invest $1M in strategic advocacy and communications counsel.

The Threat

• Increased Scrutiny: Lawmakers are questioning the value of tax-exempt status and considering whether organizations should pay more in taxes.
• Revenue Proposals: Think tanks have proposed taxing all non-donation income and eliminating tax-exempt status. This includes membership fees, investment income, trade show income, and fees for service.
• Lack of Understanding: Many lawmakers are unfamiliar with the scope and impact of the tax-exempt sector and need additional education on its economic value to the U.S. economy.

The Need for Action

• Coordinated Effort: A united front is essential to protect the ASAE’s 50,000 association executives and their organizations that represent trade associations, professional societies, and industry partners from harmful legislation that constitutes the tax-exempt sector.
• Education and Advocacy: We must have an ongoing and strategic campaign to further educate lawmakers about the benefits of the sector and advocate for policies that support its mission.

The Institute of Hazardous Materials Management [IHMM] has voted to contribute $25,000 to this national coalition and to be a part of the ASAE Executive Steering Committee on behalf of all of IHMM’s certificates. Our voices in Washington are critically important, more than ever in 2025 as Congress begins debating new federal budget and tax measures. IHMM’s Executive Director Eugene A. Guilford, Jr., CAE already serves on the ASAE Advocacy Council and now on the ASAE Executive Steering Committee on Tax Reform.

Gene Guilford worked for House Republican Leadership in 1981 and worked on passing President Reagan’s first tax cut legislation, and worked on his second 1986 tax bill as well. For other associations, he worked on tax legislation in 1993, 1997, 2001, 2010, 2012, and 2017.