Speaking to a room of dozens of people representing Kentucky nonprofits, Democratic Rep. Morgan McGarvey of Louisville expressed his concerns about how decisions in Washington D. C. are impacting local groups.
“I look around this room and it is both so inspiring and really sad right now,” McGarvey said. “I see the people who take care of our parks, who take care of our kids, who take care of women who've been abused, who take care of veterans, who feed people, and we're in a town right now that knows the value of nonprofit.”
Cuts to funding at the federal level have impacted nonprofits across interests and groups with a focus on diversity, equity and inclusion are impacted by laws and executive orders that essentially ban their missions.
The Kentucky Nonprofit Network hosted a meeting with McGarvey Wednesday to help leaders get an understanding of what steps they can take.
The group released an impact report in the wake of the federal funding cuts that shows two-thirds of Kentucky-based nonprofits could face loss of federal funding. Nonprofits in the commonwealth received $834 million directly through the federal government via grants and contracts.
While there has been some headway in reinstating funding for some groups, nonprofit organizations remain uncertain about what’s to come.
Some nonprofit leaders are worried about criticizing the federal government, as it may worsen things, said Danielle Clore, chief executive officer of the Kentucky Nonprofit Network.
“I think nonprofits are afraid. People are afraid,” Clore said. “When we talk about nonprofits, we're talking about people. Nonprofits exist to serve people, to serve our communities. And when we're at risk, people are at risk.”
Still, McGarvey encouraged nonprofit leaders to speak out and contact their congressional representatives, despite possible consequences.
“We can't stay silent. This is a time I truly believe our kids, our grandkids, they're going to ask us what we did,” McGarvey said. “I don't think complacency is a correct answer.
McGarvey advocated for the passage of H.R.3435, also known as the Charitable Act, to be reconsidered in the upcoming Congressional session. The bill would allow taxpayers who don’t typically itemize their deductions to receive a deduction for charitable contributions.
Clore said the act would go a long way in helping secure smaller donations from more people.
“It is important because donations are down... and so a lot of folks here who rely on those $100 donors, $500 donors, $1,000 donors, are really struggling,” Clore said.
While it didn’t pass during the last Congress term, McGravey said he believes it has the potential to make a return in the upcoming session.
“It should have passed last Congress,” McGarvey said. “It still has bipartisan support. I'm supportive of our nonprofits. I'm supportive of the policy, so I don't really care when it passes. I just want it to pass, and I hope it gets through this time.”
He said he believes that nonprofits are a core part of the body of society.
If government is the skeleton, he said nonprofits are the tissue.
“The muscles that bind us together and allow us to move and allow us to grow, to fill in those gaps when we so desperately need to,” McGarvey said.
