[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5533 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5533
To strengthen the partnership between nonprofit organizations and the
Federal Government, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 15, 2010
Ms. McCollum introduced the following bill; which was referred to the
Committee on Oversight and Government Reform, and in addition to the
Committees on Education and Labor and Science and Technology, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To strengthen the partnership between nonprofit organizations and the
Federal Government, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Nonprofit Sector
and Community Solutions Act of 2010''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Purposes.
TITLE I--UNITED STATES COUNCIL ON NONPROFIT ORGANIZATIONS AND COMMUNITY
SOLUTIONS
Sec. 101. United States Council on Nonprofit Organizations and
Community Solutions.
TITLE II--INTERAGENCY WORKING GROUP ON NONPROFIT ORGANIZATIONS AND THE
FEDERAL GOVERNMENT
Sec. 201. Interagency Working Group on Nonprofit Organizations and the
Federal Government.
TITLE III--DATA COLLECTION
Sec. 301. Collection and assembly of Federal data.
Sec. 302. Economic impact data.
Sec. 303. Data on Federal funding of nonprofit organizations.
Sec. 304. Employment data.
Sec. 305. Census data.
Sec. 306. Recommendations and assessment.
TITLE IV--RESEARCH
Sec. 401. Research.
TITLE V--NONPROFIT ORGANIZATION DEFINED
Sec. 501. Nonprofit organization defined.
SEC. 2. FINDINGS.
Congress finds the following:
(1) Each community in the United States is benefitted by
the work of nonprofit organizations, including in the areas
of--
(A) health and human services;
(B) education and worker training;
(C) the arts and culture;
(D) religion, faith, and spirituality;
(E) the environment, natural resources, and
recreation;
(F) justice and public safety; and
(G) civic organizations and social groups.
(2) Nonprofit organizations are a significant and highly
diverse sector of the economy of the United States that
includes 1,500,000 organizations, according to the Internal
Revenue Service, and that accounted for as much as 5 percent of
the Gross Domestic Product of the United States in 2008,
according to the Government Accountability Office.
(3) While no Federal agency regularly collects systematic
employment data on the nonprofit sector, the Congressional
Research Service estimates that nearly 10 percent of the
workforce of the United States is employed in the nonprofit
sector as a whole and more than 7 percent are employed by
501(c)(3) public charities.
(4) Most nonprofit organizations are small employers
focused on delivering vital services and creating opportunities
in communities and among groups of people and, according to the
National Center for Charitable Statistics, 93.3 percent of the
nonprofit organizations in the United States have an annual
budget of less than $1,000,000.
(5) Federal agencies, as well as State and local
governments, rely on nonprofit organizations to implement
government-funded initiatives at the community level to
accomplish public policy goals.
(6) The Federal Government provides significant support to
for-profit businesses through the Small Business Administration
and other agencies and programs that are not accessible to or
intended for nonprofit organizations.
(7) Despite the importance of the nonprofit sector to the
United States economy and to the success of many Federal,
State, and local policy initiatives, no Federal agency has
responsibility for evaluating, building, or maintaining the
capacity of the nonprofit sector and no congressional committee
has jurisdiction over the sector as a whole.
SEC. 3. PURPOSES.
The purposes of this Act are the following:
(1) To enhance the ability of the nonprofit sector to
address public challenges and maximize opportunities to improve
quality of life in the communities where nonprofit
organizations work.
(2) To strengthen communities across the United States by
making the Federal Government a more productive partner with
nonprofit organizations through the establishment of better
Federal coordination with respect to, enhanced transparency
with respect to, and greater support for the work of nonprofit
organizations.
(3) To collect, assemble, and make available Federal data
and research on the nonprofit sector and to generate new data
and research where necessary to support the development of
effective Federal policy.
(4) To raise awareness of the nonprofit sector and the
vital civic, social, and economic contributions nonprofit
organizations make to the United States.
TITLE I--UNITED STATES COUNCIL ON NONPROFIT ORGANIZATIONS AND COMMUNITY
SOLUTIONS
SEC. 101. UNITED STATES COUNCIL ON NONPROFIT ORGANIZATIONS AND
COMMUNITY SOLUTIONS.
(a) Establishment.--There is established a council to be known as
the ``United States Council on Nonprofit Organizations and Community
Solutions'' (in this section referred to as the ``Council'').
(b) Membership.--
(1) Number and appointment.--The Council shall be composed
of 16 members as follows:
(A) Five members shall be appointed by the
President.
(B) Three members shall be appointed by the
majority leader of the House of Representatives.
(C) Two members shall be appointed by the minority
leader of the House of Representatives.
(D) Three members shall be appointed by the
majority leader of the Senate.
(E) Two members shall be appointed by the minority
leader of the Senate.
(F) The Chairperson of the Interagency Working
Group on Nonprofit Organizations and the Federal
Government (established under section 201) shall be a
member without voting rights.
(2) Qualifications.--
(A) Experience and expertise.--Each individual
appointed to the Council shall possess extensive
experience or expertise with respect to one or more of
the following areas:
(i) The management, operation, or support
of nonprofit organizations, including small and
midsize nonprofit organizations and volunteer
and national service nonprofit organizations.
(ii) Social entrepreneurship and
innovation.
(iii) Philanthropy, including the
philanthropic challenges of areas and groups
underserved by donors and government programs.
(iv) Qualitative and quantitative research.
(v) The management and operation of
businesses, including business partnerships
with nonprofit organizations and philanthropic
organizations.
(B) Other qualifications.--Individuals appointing
members to the Council shall ensure that the
individuals appointed, as a group, possess experience
or expertise in each of the areas specified in
subparagraph (A) and that, to the extent practicable,
the membership of the Council includes individuals from
geographic areas and ethnic and racial backgrounds that
represent the diversity of the United States.
(3) Timing of initial appointments.--Appointment of the
initial members of the Council shall be completed not later
than 60 days after the date of enactment of this Act.
(4) Terms.--
(A) In general.--Except as provided under
subparagraph (B), members of the Council appointed
under subparagraphs (A) through (E) of paragraph (1)
shall be appointed for a term of 3 years.
(B) Initial members.--The individual making
appointments--
(i) under paragraph (1)(A) shall designate
3 of the initial members appointed by that
individual to serve a term of 4 years;
(ii) under paragraph (1)(B) shall designate
2 of the initial members appointed by that
individual to serve a term of 4 years;
(iii) under paragraph (1)(C) shall
designate one of the initial members appointed
by that individual to serve a term of 4 years;
(iv) under paragraph (1)(D) shall designate
2 of the initial members appointed by that
individual to serve a term of 4 years; and
(v) under paragraph (1)(E) shall designate
one of the initial members appointed by that
individual to serve a term of 4 years.
(5) Vacancies.--A vacancy in the Council shall be filled in
the manner in which the original appointment was made.
(6) Basic pay and travel expenses.--The members of the
Council shall serve without pay. The members of the Council
shall receive travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of business
in the performance of services for the Council.
(c) Chairperson and Vice Chairperson.--The President shall select,
from among the voting members of the Council, a Chairperson of the
Council and a Vice Chairperson of the Council, who may not be members
of the same political party.
(d) Meetings.--
(1) In general.--The Council shall meet at the call of the
Chairperson at least 5 times each year. One meeting of the
Council each year shall be a joint meeting with the Interagency
Working Group on Nonprofit Organizations and the Federal
Government (established under section 201).
(2) Initial meeting.--Not later than 60 days after the
first date on which 11 of the initial members of the Council
have been appointed, the first meeting of the Council shall
take place.
(e) Quorum.--A majority of the members of the Council shall
constitute a quorum, but a lesser number may hold hearings.
(f) Duties.--
(1) Study activities.--
(A) In general.--The Council shall study how the
Federal Government can work more efficiently and
effectively with nonprofit organizations to achieve
better outcomes in addressing national and community
challenges.
(B) Matters studied.--The matters studied by the
Council under this paragraph shall include--
(i) the role of nonprofit organizations in
the United States economy and the role of
nonprofit organizations in addressing
challenges of national interest and otherwise
strengthening communities, including with
respect to--
(I) health and human services;
(II) education and worker training;
(III) the arts and culture;
(IV) religion, faith, and
spirituality;
(V) the environment, natural
resources, and recreation;
(VI) justice and public safety; and
(VII) civic associations and
community development organizations;
(ii) how the Federal Government interacts
with nonprofit organizations and, where
applicable, how the Federal Government
interacts with nonprofit organizations in
partnership with State and local governments,
philanthropic organizations, or businesses to
address national and community challenges;
(iii) how the Federal Government can
support and build the capacity of nonprofit
organizations, including nonprofit
organizations assisting the implementation of
programs funded by a government and nonprofit
organizations attempting to expand programs
that have proven effective in addressing
national and community challenges;
(iv) how the process for nonprofit
organizations, including small and midsize
nonprofit organizations, to obtain Federal
grants and contracts can be streamlined to
eliminate unnecessary, inconsistent, or
contradictory requirements to increase the
effectiveness of Federal programs and enhance
the accountability of nonprofit organizations;
(v) how Federal Government policies and
procedures relating to contracting with
nonprofit organizations can be improved,
including by expanding eligibility for small
nonprofit organizations, streamlining
procurement processes to promote efficacy and
fairness, eliminating wasteful oversight
requirements to enhance accountability for the
use of Federal funds, increasing transparency
by establishing a searchable online database of
Federal contracts held by nonprofit
organizations, and mandating full and prompt
payment for direct and indirect costs incurred
by nonprofit organizations to manage and
administer Federal grants and contracts;
(vi) how to reduce barriers that hinder the
participation of small and midsize nonprofit
organizations in Federal programs;
(vii) how to reduce barriers that hinder
the expansion of effective strategies
implemented by nonprofit organizations to
address national and community challenges;
(viii) how and how often innovative
nonprofit organizations share effective
strategies for addressing national and
community challenges with other nonprofit
organizations, Federal, State, and local
governments, and philanthropic organizations;
(ix) the potential for creating an online
database for use by nonprofit organizations and
governments throughout the United States to
facilitate the sharing of effective strategies
and for other purposes;
(x) how the Federal Government supports
research on nonprofit organizations and the
opportunities for and benefits of increasing
such support;
(xi) how the Federal Government can--
(I) improve the quantity, quality,
and timeliness of data on nonprofit
organizations, including data with
respect to nonprofit organizations as
employers, the impact of nonprofit
organizations on the economy, and
Federal direct and indirect contracting
with and grants made to nonprofit
organizations;
(II) address gaps in data and data
in need of enhancement with respect to
nonprofit organizations;
(III) make use of and supplement
State and local data on nonprofit
organizations; and
(IV) improve the public
accessibility and usefulness of data on
nonprofit organizations; and
(xii) the staffing and leadership
challenges of nonprofit organizations,
including the causes of the challenges and how
nonprofit organizations and governments can
address the challenges together.
(2) Advice on grants.--The Council shall provide advice to
the President and Congress on the establishment of new grant
programs and the enhancement of existing grant programs--
(A) to build the capacity of nonprofit
organizations;
(B) to support research and the reporting of data
on nonprofit organizations; and
(C) to assist the Federal Government to effectively
address national and community challenges by supporting
nonprofit organizations, encouraging social innovation,
and enabling nonprofit organizations to replicate and
expand the use of effective strategies for addressing
such challenges.
(3) Advice on social innovation.--The Council shall provide
advice to the President and Congress on how innovation can
enhance the impact of nonprofit organizations.
(g) Personnel.--
(1) Executive director.--The Chairperson of the Council
shall appoint an individual to serve as the Executive Director
of the Council and that individual shall be paid at a rate
equivalent to the rate provided for level III of the Executive
Schedule under section 5314 of title 5, United States Code.
(2) Staff.--The Executive Director may appoint and fix the
pay of additional personnel to administer the Council and
provide staff support to the Interagency Working Group. Such
employees may be appointed without regard to the provisions of
title 5, United States Code, governing appointments in the
competitive service and may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of
that title relating to classification and General Schedule pay
rates.
(3) Experts and consultants.--The Executive Director may
procure the temporary and intermittent services of experts and
consultants in the same manner as an agency under section
3109(b) of title 5, United States Code.
(4) Staff of federal agencies.--The head of any Federal
department or agency may detail to the Council on a
reimbursable basis, or on a nonreimbursable basis for a period
not to exceed 180 days during any fiscal year, as agreed upon
by the Executive Director and the head of the department or
agency, any of the personnel of the department or agency to
assist the Council in carrying out the duties of the Council
under this section. Any such detail shall not interrupt or
otherwise affect the civil service status or privileges of the
Federal employee.
(h) Powers of the Council.--
(1) Hearings.--The Council may hold hearings, sit and act
at times and places, take testimony, and receive evidence as
the Council considers appropriate to carry out this section,
including holding hearings throughout the United States.
(2) Obtaining data.--
(A) In general.--Except as otherwise prohibited by
law, the Council may secure directly from any Federal
department or agency information the Council considers
necessary to carry out this section.
(B) Agency cooperation.--Upon the request of the
Chairperson of the Council, the head of any Federal
agency shall furnish information requested under this
paragraph to the Council.
(3) Mails.--The Council may use the United States mails in
the same manner and under the same conditions as other agencies
of the Federal Government.
(i) Contracting for Research.--The Council may enter into contracts
for research to inform the deliberations of the Council.
(j) Reporting.--
(1) In general.--Not later than one year after the first
meeting of the Council, and annually thereafter, the Council
shall submit to the President and Congress, including the
majority leader and the minority leader of the House of
Representatives and the majority leader and the minority leader
of the Senate, a report that includes the results of study
activities under subsection (f), advice provided under
subsection (f), and recommendations of the Council relating to
such activities.
(2) Advice on implementation.--At the request of Congress
or the head of any Federal department or agency, the Council
shall provide advice on the implementation of any
recommendation included in a report under paragraph (1).
(k) Annual Summit.--
(1) In general.--Not later than 6 months after the
submission to Congress of the first report of the Council under
subsection (j), and annually thereafter, the Council shall
organize and carry out a national summit on nonprofit
organizations to inform the public and the Members of Congress
of the results of study activities of the Council under
subsection (f).
(2) Testimony.--In carrying out a summit under paragraph
(1), the Council shall invite testimony from experts on
nonprofit organization effectiveness and innovation.
(3) Report.--Not later than 60 days after a summit under
paragraph (1), the Council shall submit to the President,
Congress, and the chief executive of each State a report
describing the activities and findings of the summit.
(l) Federal Advisory Committee Act.--Section 14(a)(2) of the
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the
Council.
(m) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary.
TITLE II--INTERAGENCY WORKING GROUP ON NONPROFIT ORGANIZATIONS AND THE
FEDERAL GOVERNMENT
SEC. 201. INTERAGENCY WORKING GROUP ON NONPROFIT ORGANIZATIONS AND THE
FEDERAL GOVERNMENT.
(a) Establishment.--The President shall establish an Interagency
Working Group on Nonprofit Organizations and the Federal Government (in
this section referred to as the ``Interagency Working Group'').
(b) Membership.--The Interagency Working Group shall be composed of
the following members:
(1) The head of each Federal department specified in
section 101 of title 5, United States Codes.
(2) The Assistant to the President for Domestic Policy.
(3) The Executive Director of the United States Council on
Nonprofit Organizations and Community Solutions (established
under section 101).
(4) The head of the Office of Faith-Based and Neighborhood
Partnerships.
(5) The head of the Office of Social Innovation and Civic
Participation.
(6) The Chief Executive Officer of the Corporation for
National and Community Service.
(7) The Director of the Office of Management and Budget.
(8) The Commissioner of Internal Revenue.
(9) The Director of the Census.
(10) The Chairperson of the National Endowment for the
Humanities.
(11) The Chairperson of the National Endowment for the
Arts.
(c) Chairperson.--The Assistant to the President for Domestic
Policy shall be the Chairperson of the Interagency Working Group.
(d) Duties.--The Interagency Working Group shall--
(1) consult and develop recommendations on Federal policies
relating to--
(A) contracting with nonprofit organizations;
(B) making grants to nonprofit organizations; and
(C) the availability to nonprofit organizations of
Federal funding provided to State and local
governments, including as a result of varying State and
local interpretations of Federal law;
(2) consult and develop recommendations on enhancing the
effectiveness of Federal support for organizational development
assistance for building the capacity of nonprofit
organizations;
(3) identify effective strategies for managing
relationships with nonprofit organizations;
(4) provide, including upon request, to the Executive
Director of the United States Council on Nonprofit
Organizations and Community Solutions (established under
section 101) information on the operations of the Federal
Government, including recommendations for issues to be
addressed by the Council; and
(5) coordinate and assist the implementation of
recommendations of the United States Council on Nonprofit
Organizations and Community Solutions specified in a report of
the Council under section 101(j).
(e) Meetings.--The Interagency Working Group shall meet at the call
of the Chairperson at least 5 times each year. One meeting of the
Interagency Working Group each year shall be a joint meeting with the
United States Council on Nonprofit Organizations and Community
Solutions (established under section 101).
(f) Reporting.--Not later than 18 months after the date of
enactment of this Act, and annually thereafter, the Interagency Working
Group shall submit to the President and Congress a report describing
actions taken by Federal agencies in response to recommendations of the
United States Council on Nonprofit Organizations and Community
Solutions specified in a report of the Council under section 101(j).
(g) Federal Advisory Committee Act.--Section 14(a)(2) of the
Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the
Interagency Working Group.
(h) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary.
TITLE III--DATA COLLECTION
SEC. 301. COLLECTION AND ASSEMBLY OF FEDERAL DATA.
(a) In General.--The Secretary of Commerce shall collect and
assemble all data in the possession of a Federal department or agency
relating to nonprofit organizations.
(b) Report.--Not later than one year after the date of enactment of
this Act, and annually thereafter, the Secretary of Commerce shall make
publicly available and submit to Congress, the United States Council on
Nonprofit Organizations and Community Solutions (established under
section 101), and the Interagency Working Group on Nonprofit
Organizations and the Federal Government (established under section
201) a report including and summarizing the information collected and
assembled under subsection (a).
SEC. 302. ECONOMIC IMPACT DATA.
Not later than 18 months after the date of enactment of this Act,
the Secretary of Commerce, acting through the Bureau of Economic
Analysis, shall submit to Congress, the United States Council on
Nonprofit Organizations and Community Solutions (established under
section 101), and the Interagency Working Group on Nonprofit
Organizations and the Federal Government (established under section
201) a report that includes recommendations for the establishment of
measures to assess and track the economic impact of nonprofit
organizations in the United States, including the scope and size of
such organizations.
SEC. 303. DATA ON FEDERAL FUNDING OF NONPROFIT ORGANIZATIONS.
The Director of the Office of Management and Budget shall ensure
accurate and timely data on direct and indirect funding provided to
nonprofit organizations by the Federal Government, including through
contracts and grants.
SEC. 304. EMPLOYMENT DATA.
The Secretary of Labor shall take steps to ensure that employment
data provided by the Bureau of Labor Statistics includes nonprofit
organizations as a distinct category of employer.
SEC. 305. CENSUS DATA.
Not later than one year after the date of enactment of this Act,
and annually thereafter, the Director of the Census shall submit to the
President and Congress a comprehensive report on nonprofit
organizations, including subcategories of nonprofit organizations.
SEC. 306. RECOMMENDATIONS AND ASSESSMENT.
(a) Recommendations.--Not later than one year after the date of
enactment of this Act, the Executive Director of the United States
Council on Nonprofit Organizations and Community Solutions (established
under section 101), in cooperation with the Chairperson of the
Interagency Working Group on Nonprofit Organizations and the Federal
Government (established under section 201), shall submit to the
President and Congress recommendations for the assembly of improved and
timely Federal data with respect to the following:
(1) The types of clients served by nonprofit organizations,
including data on the race, gender, age, income level, and
geographic location of such clients.
(2) The financial health of nonprofit organizations.
(3) Philanthropic contributions to nonprofit organizations
made by foundations, corporations, and individuals.
(4) The volunteer hours contributed to nonprofit
organizations by individuals in the United States.
(b) Assessment.--Not later than 2 years after the date of enactment
of this Act, the Executive Director of the United States Council on
Nonprofit Organizations and Community Solutions (established under
section 101) shall submit to the President and Congress a report
assessing the availability, quality, and timeliness of Federal data on
nonprofit organizations, which shall include an assessment of any
actions Federal departments and agencies have taken to improve such
data.
TITLE IV--RESEARCH
SEC. 401. RESEARCH.
(a) Establishment.--Not later than one year after the date of
enactment of this Act, the Director of the National Science Foundation
shall establish a program to improve information and knowledge with
respect to nonprofit organizations.
(b) Grant Authority.--In carrying out the program under subsection
(a), the Director is authorized to make grants to entities carrying
out--
(1) research on issues of importance to nonprofit
organizations;
(2) doctoral training with respect to research on nonprofit
organizations and the activities of nonprofit organizations;
(3) the dissemination, to government officials, leaders of
nonprofit organizations, leaders of philanthropic
organizations, and others with an interest in nonprofit
organizations and the activities of nonprofit organizations, of
research findings with respect to nonprofit organizations and
activities of nonprofit organizations; and
(4) other activities determined by the Director to
strengthen research on nonprofit organizations.
(c) Research Priorities.--A grant under subsection (b)(1) may
support research relating to nonprofit organizations and the activities
of nonprofit organizations, including research with respect to one or
more of the following:
(1) How the Federal Government can strengthen partnerships
with nonprofit organizations.
(2) How all levels of government can enhance the
effectiveness and accountability of nonprofit organizations,
including by streamlining or standardizing, where appropriate,
the processes by which nonprofit organizations apply for and
report on Federal contracts and grants.
(3) The operation of nonprofit organizations and the role
of nonprofit organizations in the United States.
(4) How the Federal Government can improve the quality and
timeliness of data on nonprofit organizations.
(5) How the Federal Government can more effectively partner
with nonprofit organizations after an emergency or disaster to
address the needs of affected communities.
(6) How to expand the participation of small nonprofit
organizations in government programs.
(7) The effectiveness of Federal Government support for
building the capacity of nonprofit organizations and
recommendations on additional programs or policies to enhance
that effectiveness.
(8) The effective strategies for addressing community
challenges utilized by innovative nonprofit organizations.
(9) How nonprofit organizations can respond to anticipated
staffing and leadership shortages.
(d) Matching Requirement.--The federal share of the cost of an
activity carried out with the assistance of a grant under subsection
(b) shall not exceed 70 percent.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for fiscal year 2011
and such sums as may be necessary for subsequent fiscal years.
TITLE V--NONPROFIT ORGANIZATION DEFINED
SEC. 501. NONPROFIT ORGANIZATION DEFINED.
In this Act, the term ``nonprofit organization'' means an
organization that is described in section 501(c)(3) of the Internal
Revenue Code of 1986 and is exempt from taxation under section 501(a)
of such Code, including religious organizations and philanthropic
organizations that meet such requirements.
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