I 
118TH CONGRESS 
1ST SESSION H. R. 3245 
To strengthen the partnership between the nonprofit organizations and the 
Federal Government, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 11, 2023 
Ms. MACE (for herself and Ms. MCCOLLUM) introduced the following bill; 
which was referred to the Committee on Oversight and Accountability, 
and in addition to the Committees on Education and the Workforce, and 
Ways and Means, 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 the nonprofit organi-
zations and the Federal Government, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Nonprofit Stakeholders 
Engaging and Advancing Together Act of 2023’’. 
SEC. 2. FINDINGS. 
The Congress finds that: 
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(1) The nonprofit sector is a trusted partner in 
working with American communities, strengthening 
civil society, and ensuring that all people living in 
the United States have the opportunity to thrive. 
(2) The Nation relies on the nonprofit sector 
for its ability to harness and direct the generosity, 
service, and volunteerism of the American people. 
(3) Nonprofit organizations are a significant 
and highly diverse sector of the United States econ-
omy that includes 1,800,000 organizations as of 
2020, according to the Internal Revenue Service. 
United States nonprofit organizations contributed 
$1.5 trillion to the economy in 2022 and accounted 
for 5.6 percent of the Gross Domestic Product of the 
United States, according to Bureau of Economic 
Analysis data interpreted by Independent Sector. 
(4) Collectively, the nonprofit sector engages 
through and is supported by more than 12.5 million 
workers, 20 million board members, 60 million vol-
unteers, and millions more donors. In 2017, United 
States nonprofit organizations paid over $670 billion 
in wages. 
(5) 92 percent of the 501(c)(3) public charities 
in the United States have an annual budget of less 
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than $1,000,000 according to data provided by the 
Internal Revenue Service. 
(6) While no Federal agency regularly collects 
systematic employment data on the nonprofit sector, 
at the local level, nonprofits are a time-tested mech-
anism for delivering critical community services. 
(7) In order to maximize the nonprofit sector’s 
ability to utilize Federal investments to respond to 
community needs, the Federal Government should 
take steps to encourage, support, and promote vol-
unteerism and charitable giving. 
(8) National service programs provide an essen-
tial vehicle for Americans of all ages eager to serve 
their communities and transform their own lives in 
the process. Service programs also provide a critical 
pipeline of emerging leaders into the workforce, in-
cluding the nonprofit workforce. 
(9) Like for-profit entities, the nonprofit sector 
is challenged during times of economic downturns. 
As employers and providers of services to countless 
people, the sustainability of this sector is of great 
national importance, yet the Federal Government 
provides significant support to for-profit businesses 
through the Small Business Administration and 
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other agencies and programs that nonprofit organi-
zations are not able to access. 
(10) Despite the importance of the nonprofit 
sector to the United States economy and to the suc-
cess of many Federal, State, and local policy initia-
tives, no Federal agency or office has responsibility 
for evaluating, building, or maintaining the capacity 
of the nonprofit sector. 
SEC. 3. PURPOSES. 
The purposes of this Act are the following: 
(1) To enhance the ability of the nonprofit sec-
tor to address public challenges and maximize oppor-
tunities 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 organiza-
tions through the establishment of better Federal co-
ordination with respect to, enhanced transparency 
with respect to, and greater support for the work of 
nonprofit organizations. 
(3) Collect, assemble, and make available Fed-
eral data and research on the nonprofit sector and 
to generate new data and research where necessary 
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to support the development of effective Federal pol-
icy. 
(4) Raise awareness of the nonprofit sector and 
the vital civic, social, and economic contributions 
nonprofit organizations make to the United States. 
SEC. 4. WHITE HOUSE OFFICE ON NONPROFIT SECTOR 
PARTNERSHIP. 
(a) ESTABLISHMENT.—There is established in the 
Executive Office of the President an Office on Nonprofit 
Sector Partnership (in this section referred to as the ‘‘Of-
fice’’). The Office will be led by a Nonprofit Advisor. 
(b) FUNCTIONS.—The Office shall— 
(1) strengthen and develop policies and actions 
which enhance the sector’s ability to address na-
tional and community priorities; 
(2) identify and promote policies that increase 
and sustain charitable giving, volunteerism, and na-
tional service to support the capacity of the non-
profit sector; 
(3) publish, based upon regular consultation 
with the nonprofit sector, policy options and rec-
ommendations for leveraging the unique partnership 
between the Federal Government and the nonprofit 
sector to accelerate repair and rebuilding across 
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America, particularly with respect to underserved 
and marginalized communities; 
(4) identify barriers and policies that hinder, 
increase, or sustain opportunities for nonprofits to 
operate internationally both on their own or in part-
nership with the Federal Government; 
(5) coordinate, across relevant Federal agen-
cies, the task of compiling, producing and making 
publicly available key existing Federal data sources 
of relevance to the nonprofit sector. This will include 
data on the economic health and impact of the non-
profit sector (including employment and wage data), 
data on Federal funding of the nonprofit sector (in-
cluding grants and contracts), Census data, and 
data on aggregated types of revenue, volunteering 
and civic engagement and be published publicly an-
nually; 
(6) direct a Federal agency, to be determined 
by the Nonprofit Advisor within 180 days, to ini-
tiate, in consultation with States, a competitive 
grant process to build a single online portal, such 
that charities can fulfill State registration and re-
porting requirements for States that choose to par-
ticipate through a single filing. An eligible grant re-
cipient must be a nonprofit organization with gov-
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erning board members possessing experience working 
to align charitable registration requirements across 
States. In evaluating applications for this portal, the 
Federal agency shall consider whether the applica-
tion will— 
(A) enable smaller charities to respond to 
disasters in their communities by raising funds 
from multiple States; 
(B) empower the public to make respon-
sible donations, especially to help those in need 
during natural disasters or other crises of na-
tional significance; 
(C) eliminate costly inefficiencies for char-
ities operating or fundraising in multiple 
States; 
(D) help nonprofits meet existing registra-
tion and filing requirements; 
(E) 
ensure 
appropriate 
cybersecurity 
standards are being met or exceeded; 
(F) preserve the public’s trust in non-
profits; and 
(G) establish a sustainable funding mecha-
nism that is not reliant on Federal funding for 
ongoing costs; and 
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(7) convene a commission on Federal grant re-
form composed of individuals representing Federal 
grantmaking agencies, pass-through entities, and 
nonprofit grantees and subgrantees to offer rec-
ommendations to streamline and improve the oper-
ational relationship between all levels of government 
and the nonprofit sector. In addition, the sector’s ac-
cess to, participation in and performance in Federal, 
State, and local government contracting and funding 
shall be assessed— 
(A) the commission members shall be ap-
pointed by the President and be drawn from the 
nonprofit sector to include designees with sub-
stantial and diverse experience in Federal, 
State, and local governmental grantmaking 
processes, and shall include proportional rep-
resentation from small, medium, and large non-
profit organizations as determined by annual 
expenses, and include meaningful racial, gender, 
ethnic and geographic diversity; 
(B) the report of the commission shall in-
clude recommendations on— 
(i) improving provisions of the Uni-
form Administrative Requirements, Cost 
Principles, and Audit Requirements for 
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Federal Awards (OMB Uniform Guid-
ance), (2 C.F.R. 200), related to racial, 
gender, ethnic inclusion in grantmaking 
processes, and to negotiation of indirect 
costs, including a de minimis indirect cost 
rate; 
(ii) promoting Federal agency compli-
ance with the OMB Uniform Guidance to 
preserve the integrity of Federal programs 
while 
allowing 
nonprofit 
organizations 
streamlined access to Federal funding op-
portunities, expressly in the areas of pay-
ment by pass-through entities and others 
of indirect cost rates and establishment of 
a clearinghouse of agency decisions or 
other means for maintaining consistent in-
terpretation of the OMB Uniform Guid-
ance; 
(iii) reviewing Federal statutes and 
regulations to identify inconsistent require-
ments and restrictions on payment of ‘‘ad-
ministrative costs’’ and other terms and 
definitions, and consider the impact of in-
consistent or conflicting rules on organiza-
tions seeking Federal and State pass- 
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