The Proposed S.E.A.T. Act – Panacea or Blueprint for an Enhanced Federal Government and Non-profit Partnership?
The views expressed are those of the author and do not necessarily reflect the views of ASPA as an organization.
By Stephen R. Rolandi
April 22, 2024
“I have spoken of a thousand points of light, of all the community organizations that are spread like stars throughout the Nation, doing good. We will work hand in hand , encouraging, sometimes leading, sometimes being led, rewarding.”— President George H. W. Bush, Inaugural Address, January 20, 1989
The not-for-profit (independent) sector in the United States comprises a significant and growing part of the American economy. It currently employs more than 14 million persons in approximately 2 million organizations and associations, and constitutes more than $2 trillion in revenue (or roughly 10 percent of the national GDP). The overwhelming percentage of NFP organizations are tax-exempt entities; a heavy percentage of NFPs are engaged in educational, social service, charitable and educational missions.
Historically, non-profits (initially referred to as “charities”) in the United States have played a key role in addressing society’s needs and providing services when government could not or would not do so.
In more recent years, however, both the private and public sectors (including the NFP sector), are increasingly faced with more complex problems and challenges that cannot be solved on their own, and require cross sector partnerships on a larger scale, particularly between the Federal government and the independent sector in our own country. Indeed, many start-up NFP organizations often rely on government partnerships for outreach and program delivery.
However, what do we mean exactly when we speak of “government partnerships’? Countless metrics and frameworks have been developed over the years to measure growth, programmatic impact and financial viability. But what tools are utilized when evaluating the value and nature of NFP-government partnerships?
It is in this context that this month’s column focuses on the proposed “Nonprofit Stakeholders Engaging and Advancing Together Act of 2023 (S.E.A.T.),” introduced in the 118th Congress (2023-2024) as H.R. 3245. The sponsors of this House legislation are: Representatives Betty McCollum (D-MN-04) and Nancy Mace (R-SC-01). More recent co-sponsors include: Representatives Thomas Kean, Jr. (R-NJ 17); Josh Gottheimer (D-NJ5) and Jill Tokuda (D-HI 2). The proposed legislation has been referred to the House Committee on Oversight and Accountability. The proposed S.E.A.T. Act has the support of the National Council of Nonprofits and the Independent Sector, as well as several hundred NFP and community organizations.
This proposed legislation would, if passed into law, accomplish the following:
- Establish a White House Office on Nonprofit Sector Partnership (to be led by an Assistant to the President-level appointed official), as well as an Interagency Council on Nonprofit Sector Partnership;
- Create an advisory commission (with members appointed by the President and the leadership of the House and Senate) to promote enforcement of protections in the OMB Uniform Guidance (OMB set of rules and requirements for government wide financial grants);
- Propose multiple tasks for Federal agencies to maximize opportunities to improve the communities that nonprofit organizations serve. For example, AmeriCorps, the Federal agency for national service and volunteerism, would be required to produce a biennial report on ways to support non-paid volunteers and provide suggestions on improving public interest in volunteering and charitable giving. The Treasury Department would also be tasked with evaluating and understanding the impact of new government regulations on the NFP sector;
- The SEAT Act would also mandate collection of data regarding the not-for-profit sector; currently, no Federal agency collects employment date for this sector. Agencies that would be required to be part of this effort include: Commerce; Labor (Bureau of Labor Statistics); OMB; GAO; and the Bureau of Economic Analysis.
This proposed legislation would create mechanisms that leverage the mission, knowledge and impact of non-profit organizations to help government and the independent sector work more closely and effectively in pursuit of shared goals.
The price tag for the proposed S.E.A.T. Act would be $50 million in public funds for each of four years from FFY 2025 through FFY 2028, or $200 million in total expenditure outlays.
Current Outlook for Passage:
This proposed legislation was first introduced in May of 2023 by Representatives Mace and McCollum. Additional co-sponsors came on board in late 2023 and early 2024; it is now being considered by the House Oversight and Accountability Committee (note: a similar bill was introduced by Representative McCollum in 2022, which was not passed by the prior Congress). A good sign for the future of this bill is that it enjoys some measure of bi-partisan support in the House. Once passed, implementation would have to ensure that the S.E.A.T Act does not duplicate the work of the current Points of Light Foundation.
Given that this is a Presidential election year and the current House’s lackluster performance on many issues, passage this year appears to be doubtful. I remain hopeful that, given Congress’ pending approval of the $95 billion foreign aid assistance legislation for Ukraine, Israel and Taiwan, both House and Senate may consider the S.E.A.T. Act.
Time will tell.
Postscript:
For further reading on this topic, I would recommend:
- Lester M. Salamon, “The Resilient Sector Revisited: The New Challenge to Nonprofit America,” Second Edition (Brookings, 2015);
- Steve Schmida, “Partner with Purpose: Solving 21st Century Business Problems through Cross-Sector Collaboration,” (Rivertowns Books, 2020);
- Elizabeth Boris (ed.), C. Eugene Steuerle (ed.), “Nonprofits and Government: Collaboration and Conflict,” (Urban Institute Press, 3rd Edition, 2016)
Author: Stephen R. Rolandi retired in 2015 after serving with the State and City of New York. He holds BA and MPA degrees from New York University, and studied law at Brooklyn Law School. He teaches public finance and management as an Adjunct Professor of Public Administration at John Jay College of Criminal Justice (CUNY) and Pace University. He is a Trustee of NECoPA; President-emeritus/Senior Advisor of ASPA’s New York Metropolitan Chapter and past National Council Representative; he has also has served on many association boards, and is a frequent guest commentator on public affairs and political issues affecting the nation and New York State. You can reach him at: [email protected] or [email protected] or 914.441.3399 or 212.237.8000.
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The Proposed S.E.A.T. Act – Panacea or Blueprint for an Enhanced Federal Government and Non-profit Partnership?
The views expressed are those of the author and do not necessarily reflect the views of ASPA as an organization.
By Stephen R. Rolandi
April 22, 2024
“I have spoken of a thousand points of light, of all the community organizations that are spread like stars throughout the Nation, doing good. We will work hand in hand , encouraging, sometimes leading, sometimes being led, rewarding.”— President George H. W. Bush, Inaugural Address, January 20, 1989
The not-for-profit (independent) sector in the United States comprises a significant and growing part of the American economy. It currently employs more than 14 million persons in approximately 2 million organizations and associations, and constitutes more than $2 trillion in revenue (or roughly 10 percent of the national GDP). The overwhelming percentage of NFP organizations are tax-exempt entities; a heavy percentage of NFPs are engaged in educational, social service, charitable and educational missions.
Historically, non-profits (initially referred to as “charities”) in the United States have played a key role in addressing society’s needs and providing services when government could not or would not do so.
In more recent years, however, both the private and public sectors (including the NFP sector), are increasingly faced with more complex problems and challenges that cannot be solved on their own, and require cross sector partnerships on a larger scale, particularly between the Federal government and the independent sector in our own country. Indeed, many start-up NFP organizations often rely on government partnerships for outreach and program delivery.
However, what do we mean exactly when we speak of “government partnerships’? Countless metrics and frameworks have been developed over the years to measure growth, programmatic impact and financial viability. But what tools are utilized when evaluating the value and nature of NFP-government partnerships?
It is in this context that this month’s column focuses on the proposed “Nonprofit Stakeholders Engaging and Advancing Together Act of 2023 (S.E.A.T.),” introduced in the 118th Congress (2023-2024) as H.R. 3245. The sponsors of this House legislation are: Representatives Betty McCollum (D-MN-04) and Nancy Mace (R-SC-01). More recent co-sponsors include: Representatives Thomas Kean, Jr. (R-NJ 17); Josh Gottheimer (D-NJ5) and Jill Tokuda (D-HI 2). The proposed legislation has been referred to the House Committee on Oversight and Accountability. The proposed S.E.A.T. Act has the support of the National Council of Nonprofits and the Independent Sector, as well as several hundred NFP and community organizations.
This proposed legislation would, if passed into law, accomplish the following:
This proposed legislation would create mechanisms that leverage the mission, knowledge and impact of non-profit organizations to help government and the independent sector work more closely and effectively in pursuit of shared goals.
The price tag for the proposed S.E.A.T. Act would be $50 million in public funds for each of four years from FFY 2025 through FFY 2028, or $200 million in total expenditure outlays.
Current Outlook for Passage:
This proposed legislation was first introduced in May of 2023 by Representatives Mace and McCollum. Additional co-sponsors came on board in late 2023 and early 2024; it is now being considered by the House Oversight and Accountability Committee (note: a similar bill was introduced by Representative McCollum in 2022, which was not passed by the prior Congress). A good sign for the future of this bill is that it enjoys some measure of bi-partisan support in the House. Once passed, implementation would have to ensure that the S.E.A.T Act does not duplicate the work of the current Points of Light Foundation.
Given that this is a Presidential election year and the current House’s lackluster performance on many issues, passage this year appears to be doubtful. I remain hopeful that, given Congress’ pending approval of the $95 billion foreign aid assistance legislation for Ukraine, Israel and Taiwan, both House and Senate may consider the S.E.A.T. Act.
Time will tell.
Postscript:
For further reading on this topic, I would recommend:
Author: Stephen R. Rolandi retired in 2015 after serving with the State and City of New York. He holds BA and MPA degrees from New York University, and studied law at Brooklyn Law School. He teaches public finance and management as an Adjunct Professor of Public Administration at John Jay College of Criminal Justice (CUNY) and Pace University. He is a Trustee of NECoPA; President-emeritus/Senior Advisor of ASPA’s New York Metropolitan Chapter and past National Council Representative; he has also has served on many association boards, and is a frequent guest commentator on public affairs and political issues affecting the nation and New York State. You can reach him at: [email protected] or [email protected] or 914.441.3399 or 212.237.8000.
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