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Nonprofit leaders defend tax-exempt sector as GOP lawmakers threaten revocations and cuts
Summary
At a House Oversight subcommittee hearing, nonprofit advocates warned that threats to revoke tax-exempt status and broad funding cuts would harm local services, while Republican members argued for transparency and tighter controls on federal grants to politically active nonprofits.
Diane Yentel, president and CEO of the National Council of Nonprofits, used her opening statement to lay out the sector's role in communities and to push back on committee members’ allegations that most nonprofits are partisan or corrupt. "Nonprofits are local, accountable, transparent, and are nonpartisan by law and in practice," Yentel told the subcommittee.
Why it matters: Members on both sides framed the hearings around oversight of federal dollars — Republicans argued for transparency and restraint of perceived cronyism, and Democrats warned that illegal or retaliatory targeting of charities would reduce services for vulnerable communities and could itself be unlawful.
What nonprofit leaders said
- Yentel said most charities are small: "92% have…
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