In early 2024, the Treasurer’s Office asked Forefront to support his proposal to create a nonprofit investment pool similar to Illinois Funds. After vetting the concept with our policy committee and other stakeholders, Forefront’s policy team helped negotiate and advocate for this bill, because it offered a practical tool to help nonprofit organizations reduce fees and earn more interest on their own money. Unfortunately, despite the fact that hundreds of organizations supported the bill with witness slips and in a joint letter, the Governor vetoed SB246, arguing that it may help bad actors earn more money.

Forefront generally disagrees with the decision to veto the bill, even while we share the Governor’s legitimate concerns about extremist groups. Nonprofits are facing federal grant terminations and budget cuts, layoffs, and delayed government contract payments while simultaneously trying to meet increased demand for services and planning for an uncertain future due to the impact of HR1 and forthcoming federal funding recissions.

While this is not the outcome we hoped for related to SB246, and Forefront will continue working with our national partners, members, the Governor’s Office, and other policy makers to solve tenacious problems facing the nonprofit sector. This includes offering training and technical assistance to support government contractors, supporting favorable charitable tax policy, and advocating for government contracting reform. And yes, it also includes continuing to root out corruption and extremism within the tax-exempt sector. For example, for over ten years, National Council of Nonprofits and its state affiliates like Forefront have called upon Congress and the IRS to eliminate Form 1023-EZ, which may be abused by bad actors seeking tax-exempt status.

The truth is, most nonprofits are small, local, and do the work that government has outsourced. Nonprofits get it done in every community in Illinois and that’s what should be called out. The fringe groups that were the focus of the Governor’s unfortunate decision to veto SB246 cast a bad light on the vast majority of organizations that support well-being for every Illinoisan.

We are grateful to the Treasurer and Chief Sponsors Sen. Adriane Johnson and Rep. Rita Mayfield for looking for ways to proactively support nonprofit businesses. We look forward to working with any policy maker in the future that is willing to do the same.