Text: H.R.5533 — 111th Congress (2009-2010)All Information (Except Text)

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Introduced in House (06/15/2010)


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.

Sec. 101. United States Council on Nonprofit Organizations and Community Solutions.

Sec. 201. Interagency Working Group on Nonprofit Organizations and the Federal Government.

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.

Sec. 401. Research.

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.

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.

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.

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.

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.

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.