PANO Goes to DC

On June 10, 2026, PANO joined nonprofit leaders from across Pennsylvania and fellow state nonprofit associations in Washington, D.C. for a day of advocacy, coalition building, and conversations with members of Congress. Through meetings on Capitol Hill and engagement at a national conference, Pennsylvania’s nonprofit community made its voice heard alongside partners from across the country — 10 meetings in all, spanning both parties and both chambers. 

We came with a clear agenda: make the case for Pennsylvania’s nonprofit sector at a moment when federal policy decisions are reshaping the landscape faster than at any point in recent memory. We left more committed than ever to continuing that work. 

Here’s what we brought to Washington — and why it matters. 

1.H.R. 1 Is Not a Neutral Bill for Nonprofits

The reconciliation package moving through Congress carries real consequences for the organizations that serve Pennsylvania communities — and we made sure lawmakers heard that directly. 

On one hand, we were glad to see H.R. 1 include a universal charitable deduction available to all taxpayers, not just those who itemize. That provision is estimated to add over $4 billion in annual giving, and we support it. But that good news is undercut by other provisions in the same bill: a 0.5% floor on itemized charitable deductions, a 35% cap on deductions for top-bracket filers, and a 1% floor on corporate charitable deductions. Combined, those provisions are estimated to reduce giving by more than $10 billion annually. The net impact on charitable giving: -$5.7 billion per year.  

That number matters because individual giving is already under pressure. According to Giving USA’s 2025 report, the share of charitable giving coming from individuals has declined from over 70% to 66% — and nonprofits have traditionally leaned on individual donations to fill gaps when other funding sources fall short. A further erosion of giving incentives, at this moment, adds strain to organizations already absorbing increased demand and reduced federal funding. 

Beyond charitable giving, H.R. 1’s proposed cuts to Medicaid and food assistance have direct operational implications for Pennsylvania nonprofits. At least 47 Pennsylvania-based hospitals and hundreds of free clinics and other organizations that receive Medicaid reimbursements stand to see significant revenue reductions. And when more than 300,000 Pennsylvanians are at risk of losing health coverage, the demand for community-based services doesn’t disappear — it shifts to nonprofits. 

We will continue to advocate for provisions that protect — and strengthen — the incentives that make charitable giving possible. 

2. Broad Oversight Is Not the Same as Accountability 

Pennsylvania nonprofits believe in transparency, accountability, and the responsible stewardship of public and charitable dollars. We said so in every meeting. But we also raised a concern that is growing harder to ignore: the trend toward broad, sector-wide federal scrutiny that risks creating more administrative burden than it does accountability. 

In recent months, the nonprofit sector has seen a wave of federal activity — congressional hearings on foreign influence, proposals to expand Form 990 reporting requirements, a new congressional task force examining nonprofit activities, and an IRS whistleblower initiative encouraging reports of potential misuse of federal funds. Individually, some of these measures have legitimate aims. Collectively, they are landing on organizations that are already operating with limited staff and resources while meeting growing community needs. 

The ask we brought to Capitol Hill was straightforward: focus enforcement where problems actually exist, rather than imposing new compliance requirements on an entire sector of nearly 1.5 million organizations nationwide. In Pennsylvania alone, 49,000 active nonprofits employ 817,300 workers — 15.7% of the state’s private sector workforce — and contribute nearly $140 billion to the state’s economy. They are delivering food assistance, housing support, healthcare access, victim services, and essential community programs every single day. Broad new reporting requirements divert capacity away from exactly that work. 

We will keep making this case as federal oversight proposals move forward. 

 3.The Johnson Amendment Protects Everyone — Including Nonprofits 

For more than 70 years, the Johnson Amendment has kept charitable nonprofits out of partisan politics. PANO and Pennsylvania’s nonprofit community want to keep it that way — and we made that clear on Capitol Hill. 

The Free Speech Fairness Act (H.R. 2501 / S. 1205) would allow charitable nonprofits, foundations, and houses of worship to make partisan campaign statements and spend a de minimis amount on political activities. PANO opposes this bill. Nonpartisanship isn’t a constraint on nonprofits — it’s a cornerstone of what makes us effective. It’s what allows nonprofits to serve all community members regardless of political affiliation, to partner with elected officials across the aisle, and to maintain the public trust that charitable work depends on. 

Recent developments make this issue more urgent. In March 2026, a federal court dismissed a proposed settlement that would have barred the IRS from enforcing the Johnson Amendment — for now, a key protection remains in place. But the case is being appealed to the Fifth Circuit, and the IRS has announced plans to remove these protections administratively in the interim. The issue is live, and the stakes are high. 

We asked members of Congress to understand the difference between political activity — endorsing a candidate or party — and advocacy work, which nonprofits engage in every day on behalf of the communities they serve. We need partners in Washington who can hold that distinction clearly, and we will continue pressing for it. 

What Comes Next 

Our work in Washington doesn’t end when the meetings do. In the weeks ahead, we’ll be following up with the offices we met with, sharing our 2025 Economic Impact of Pennsylvania Nonprofits Report, and continuing to track the federal issues most likely to affect Pennsylvania’s nonprofit sector this year. 

We’re also continuing to build the infrastructure for sustained federal advocacy — through PAAN, through coalition partnerships with fellow state associations, and through the regional Legislator Breakfast series that is bringing nonprofits and elected officials together at the district level ahead of budget season. 

The challenges facing Pennsylvania nonprofits right now are significant: federal funding uncertainty, the potential erosion of charitable giving incentives, and a policy environment that is moving quickly. But the sector is not sitting still. We went to Washington because these conversations matter — and we’ll keep having them.  

If you’d like to get more involved in PANO’s advocacy work, email anna@pano.org or visit pano.org/paan to learn more about the Policy, Advocacy, and Action Network.