08/16/2024

There is No Association Community Without Unity

Associations protect, educate and elevate countless industries – we must protect them

This past week, I was lucky enough to attend the 2024 ASAE Annual Meeting & Expo in Cleveland. The meeting brought more than 5,000 professionals together to learn from one another and to strengthen the acumen of those leading the nonprofit industry.

As I spoke with OSAP members, Association Societies Alliance (ASA) colleagues and staff from ASAE, I was reminded of all of the amazing work associations are doing – not just in Ohio – but around the nation and our world. Our organizations strive to help our members – no matter the niche – do their jobs more effectively and protect the communities in which they operate.

Very few people realize or even know that associations are the largest post-secondary providers of education in the United States. Through the special certifications, accreditations and designations associations and other nonprofits provide, countless lives are impacted whether through improved access to knowledge, stronger earning opportunities or expanded job skills. Each year, in Ohio alone, the industry employs nearly 6,900 people and is responsible for more than $332 million in annual wages. Those are wages being spent in our communities, with retailers and driving economic expansion in Ohio and beyond.

During the conference, the Public Policy team at ASAE, led by Mary Kate Cunningham, CAE and her talented staff, including Jeff Evans and Burcu Sahmali, informed association leaders of the latest threat to associations – the threat of extreme tax reform policies designed to strip nonprofit organizations – any in the 501(c) designation – of the tax-exempt protections they have known for decades and rely upon for operation. This is considered the greatest threat to nonprofits in more than 50 years. Let that sink in for a second – organizations who exist to help alleviate government of jobs training programs, food security initiatives, emergency access to healthcare and much more – are being told they don't do enough for the communities in which they operate often on shoestring budgets. I don't know about you, but this infuriates me and makes me want to knock on every lawmaker's door in our country to explain the invaluable work being done by nonprofits.

What has created this attack on our community? Although there are many factors, major Trump-era tax cuts expire in 2025; thus, tax reform is coming next year regardless of election results in November. In fact, if a single party captures both the White House and Congress, tax legislation could move blindingly fast.

In the past year, several high-profile members of Congress and individuals leading economic think tanks have publicly and explicitly called for taxing the entire 501(c) sector. The financial risk to associations and other nonprofits could be existential. For example, the Tax Foundation issued a report urging Congress to tax our community across the board. Members of the Ways & Means Committee, the entity that writes tax legislation, have echoed this perspective.

This means that every source of these organizations’ non-charitable revenue (translation: membership dues, tradeshow income, education/training dollars and even monies earned through credentialing) is at risk of the 21 percent federal corporate income tax. The only thing safeguarded would likely be charitable donations. 

It is for this reason that OSAP will be joining ASAE in a coalition of associations and other nonprofits to advocate against harmful and misguided taxes on the tax-exempt community. We strongly encourage all tax-exempt organizations to join the fight and help protect our mission-driven community. We will share with all of you how you, too, can get involved.

OSAP recognizes the phenomenal work nonprofits spearhead on behalf of their communities, their members and the countless lives they strengthen no matter their mission or cause. Without our tax-exempt status, many organizations simply would cease to exist. This is why we’re going to go to the forefront and champion the cause of you – ourmembers. You and the work you do cannot be put at risk simply because Congressional leaders and think tanks see an opportunity for balancing budgets on the back of those already putting their noses to the grindstone on behalf of our nation’s citizenry and communities.

I hope you’ll join me in the fight to protect Ohio’s nonprofit community as we face down this legislation. As more developments occur, you will be hearing from me and other leaders in OSAP’s leadership about ways you can get involved and champion the great work we do.

In unity, we now must engage as a community to help ensure this does not happen – today, tomorrow or in the next 50 years. Thank you for support and engagement with OSAP – your association.

In Service,
Jarrod A. Clabaugh, CAE
President, Ohio Society of Association Professionals (OSAP)
Immediate Past-chair, Association Societies Alliance (ASA)