Spring Special: $0 Incorporation Service

Legislation would create ‘Small Business Administration for nonprofits’

Posted On:

A bill proposed by Minnesota Congresswoman Betty McCollum would create a 16-member bipartisan council to represent nonprofit organizations in Washington D.C., according to the Nonprofit Times.

“Even though the nonprofit sector plays a critical role in the success of federal, state and local programs, the federal government currently has a minimal relationship with it,” McCollum told the paper.

The legislation says that council members would be made up of people with extensive business experience and familiarity with nonprofits. Council members – who would not be paid – would be appointed by the president and congressional leaders. The council’s executive director would be paid at the same level as the administrator of the SBA.

The bill would also require the Commerce department to compile data on the heath of the nonprofit sector, like it already does for other business types.

Nonprofit organizations play a significant role in the nation’s economy. The National Center for Charitable Statistics says that there are more than 1.5 million nonprofits in the country, which control $3.8 trillion in assets.