June 19, 2010 — A bill was filed in Congress last week aimed at strengthening ties between the nonprofit sector and the federal government by establishing better communication with the federal government, improving coordination within government, and enhancing data collection.

The Nonprofit Sector and Community Solutions Act (H.R.5533), filed by Congresswoman Betty McCollum (D-MN) would do the following:

• Create a U.S. Council on the Nonprofit Sector and Community Solutions to advise the President and Congress about how the federal government can work more effectively with nonprofits to “address national and community challenges and maximize community opportunities.” The Council would study the relationship between nonprofits and government, including government contracting; the role of nonprofits in the U.S. economy; ways to eliminate barriers that inhibit nonprofits from bringing proven solutions to scale; as well as other issues. It would be required to provide an annual report to Congress and the President.

• Create an Interagency Working Group on Nonprofits and the Federal Government to coordinate administrative policies regarding contracting with, supporting, and managing relationships with nonprofits. The working group would include secretaries of each cabinet agency, and commissioners and directors of key agencies that interact with nonprofits, such as the IRS Commissioner, the Director of the Census Bureau; and the Chairs of the NEH and the NEA.

• Charge the Department of Commerce to gather data from other federal agencies on nonprofit employment, federal funding of nonprofits, nonprofit revenues, clients served by nonprofits, and the financial health of nonprofits. The Bureau of Economic Analysis at the Department of Commerce would be charged with recommending a set of metrics for measuring the scope, size and economic impact of the nonprofit sector.

• Create a Nonprofit Research Fund to support a broad range of basic and applied research on issues of critical importance to the sector; training in nonprofit research; and dissemination of research findings to government officials and nonprofit leaders.

The, Association for Research on Nonprofit Organizations and Voluntary Action, Independent Sector, and the National Council of Nonprofits have both endorsed the Nonprofit Sector and Community Solutions Act.