Member Legislation Education: The Basics of H.R. 9495
You may have heard about H.R. 9495, a bill that has the potential to impact nonprofits across the board, including those in the arts, culture, and history sectors. Staying informed about this legislation is crucial, as it could affect how organizations like ours operate and serve our communities.
The Basics of H.R. 9495
H.R. 9495, also called the "Stop Terror-Financing and Tax Penalties on American Hostages Act," has sparked concern within the nonprofit community. While its stated aim is to prevent nonprofits from being used to fund terrorism, the bill includes measures that give the U.S. Treasury Secretary broad authority to designate nonprofits as “terrorist-supporting organizations” and strip them of their tax-exempt status with minimal due process.
This is alarming for nonprofits because the bill:
- Allows accusations without requiring full disclosure of evidence.
- Shifts the burden of proof onto nonprofits to disprove allegations.
- Applies retroactively with a three-year lookback period.
While there are positive provisions in the bill, such as tax relief for Americans wrongfully detained or held hostage, the nonprofit sector sees significant risks in its current form.
Where Things Stand
On November 21, the U.S. House of Representatives passed H.R. 9495 by a narrow margin of 219-184, following a prior vote on November 12. Here’s how some South Jersey representatives voted:
- District 1 (Norcross): Changed from Yes (Nov. 12) to No (Nov. 21)
- District 2 (Van Drew): Yes on both votes
- District 3 (Kim): Not Voting (Nov. 12), No (Nov. 21)
- District 4 (Smith): Yes on both votes
The bill now heads to the Senate, facing a less certain future.
Why This Matters for Arts and Culture Nonprofits
If this bill becomes law, it could create challenges for nonprofits, including those in the arts and culture sector. The Treasury Secretary's ability to revoke tax-exempt status without due process could place unnecessary and burdensome risks on organizations that are already working tirelessly to serve their communities.
What’s Next?
While it’s unlikely the Senate will take up the bill in its current form before the end of the session, now is the time to stay informed and connected.
If you’d like to learn more about the implications of H.R. 9495 or how to take appropriate action:
- ArtPride NJ (artpridenj.org) and the New Jersey Center for Nonprofits (njnonprofits.org) are excellent resources for understanding what this bill could mean for our sector. They can also help answer specific questions or guide you on calls to action if you want to engage further.
- Reach out to Senators Cory Booker and George Helmy to share your concerns. Let them know how this legislation could impact your work and the communities you serve.
For more information on this bill and its potential effects, we recommend you read the analysis provided by organizations like the National Council of Nonprofits.
Stay informed! Together, we can navigate these changes and continue to support the vibrant New Jersey arts, culture, and history landscape of South Jersey.
