Policy Principles and Priorities

Maryland faces a major budget gap in the coming year as the state has not adjusted its revenue structure to cover its commitments, including for the Blueprint for Maryland’s Future. Moreover, Maryland’s current tax structure is unfair. Low- and moderate-income Marylanders and small businesses pay more in state and local taxes than higher-income Marylanders and big for-profit corporations.  

The Fair Share Maryland Plan provides common sense solutions for a future that looks better than the past – for economic growth and well-being of our residents. The Fair Share Maryland Plan will help address the fiscal deficit and lower taxes for 850,000 Marylanders by expanding access to the child tax credit and the earned income tax credit. This is achieved through modest increases in tax rates for wealthy Marylanders and closing a major tax loophole by instituting combined reporting for for-profit corporations – a strategy that is used in red and blue states alike to ensure for-profit companies doing business in Maryland also contribute to the public services they benefit from here by paying taxes.  

Maryland Nonprofits urges support for the Fair Share Maryland Plan as well as other sensible measures to tax polluters and address revenue gaps without burdening low-income Marylanders with regressive tax measures.

Doing business with governments can be perilous for some nonprofits, but without that partnership, critical community needs would go unmet. Maryland Nonprofits continues to advocate for a more accessible and efficient system of government grants and contracts-streamlining processes, ensuring upfront and timely payments, equitably covering administrative costs, and providing sufficient funding to enable nonprofit providers to compete for and sustain a qualified workforce. 

State agencies must be adequately staffed to ensure effective service delivery and better coordination with nonprofit providers. Efforts begun by the Moore-Miller Administration to achieve better coordination and more efficient use of both state and provider resources must be continued. 

Maryland Nonprofits is also seeking funding in the FY2026 State Budget to continue the Nonprofit Accelerator Program, launched in FY2022 with a 3-year grant of $5 million. The Accelerator provides critical back-office services for smaller nonprofits, develops new resources for nonprofits, offers services and assistance in grant-seeking, and provides intensive training in nonprofit basics and nonprofit leadership.

The program is designed to support small and mid-sized organizations, with an emphasis on organizations led by people of color, rural organizations, and others who otherwise would not be able to afford the back-office, consulting, and mentoring services they need to sustainably grow their organizations. The Accelerator creates lasting capacity within Maryland for more organizations to leverage additional funding into the state from federal and philanthropic sources. 

We support measures to preserve and protect charitable nonprofit nonpartisanship, enhance incentives for equitable charitable giving and volunteerism, and expand government support for nonprofit capacity building. Additionally, we advocate for ensuring that tax credits available to for-profit businesses are equitably extended to nonprofits. 

As our state grapples with the sunsetting of COVID-19 relief funding, and uncertainties with federal policy in the future, nonprofit sustainability and community resiliency are ever more critical to build a strong and inclusive economy and communities. 

Maryland’s nonprofits are vital to our state’s economic and community well-being but face challenges in securing and managing government grants. New Office of Management and Budget (OMB) guidance is a positive step, but more is needed. Key issues include a lack of awareness among government agencies, inequitable cost-sharing and reimbursement requirements, underfunding of essential “indirect” costs, complex grant application processes, insufficient technical assistance, and limited accessibility for non-English speakers. 

Nonprofits need representation at policymaking tables to highlight their contributions and needs. Eliminating matching fund requirements and providing upfront funding are crucial to ease financial burdens on smaller nonprofits. Covering all indirect costs without preset limits is essential for sustainability.  

The Empowering Nonprofits Act (H.R.787) aims to lower matching funds requirements. Simplifying and standardizing grant processes, as proposed in the Streamlining Federal Grants Act of 2023 (S.2286) and the Grant Transparency Act of 2023 (S.2260), would improve efficiency and transparency. Federal funding for nonprofit capacity building and inclusion in small business support programs is also crucial. Ensuring grant information is accessible to individuals with limited English proficiency is addressed by the Federal Grants Language Accessibility Act of 2023 (S.2471). 

Maryland Nonprofits supports a comprehensive congressional approach to make grantmaking more equitable. Addressing these challenges through legislative and policy reforms will improve collaboration between nonprofits and government agencies, enhancing the efficiency, transparency, and impact of grant programs.

Charitable giving is a cornerstone of nonprofit funding, yet donation incentives have waned since the expiration of the non-itemizer charitable deduction introduced under the CARES Act in 2020. This provision significantly boosted donations, particularly from lower and middle-income households. In 2020, over 42.5 million taxpayers utilized this deduction, contributing $10.9 billion in charitable giving. 

Restoring this deduction is crucial to sustaining and increasing donation levels, particularly for smaller contributions that significantly impact many nonprofits. The Charitable Act (S.566/H.R.8152) aims to reinstate a non-itemizer charitable deduction, capped at a third of the amount of the standard deduction, for the 2023 and 2024 tax years.  

This legislation aims to extend giving incentives to a broader base of donors and expand the reach of charitable services. All taxpayers, not just the 10% who itemize, should have the opportunity to offset their taxable income by supporting the essential work of charities in their communities.

The IRS sets the business mileage rate annually based on various factors, currently at 67 cents per mile, while the volunteer mileage rate is fixed at 14 cents per mile and has not changed since 1997. The Volunteer Driver Tax Appreciation Act (S.3020/H.R.3032) would increase the mileage reimbursement rate for volunteers. 

In-kind good-faith donors to animal shelters are not protected from liability as donors to food pantries are. The Bringing Animals Relief and Kindness (BARK) Act (S.2370/H.R.4750) would extend that protection to donors to animal shelters. 

Nonprofits should not be burdened with complying with data privacy laws that do not account for their unique operations, such as receiving donations and managing volunteers.

Maryland Nonprofits supports a broad range of public interest issues. These include ensuring individuals with limited English proficiency may access public services, addressing the disproportionate impact of environmental hazards and the climate crisis, improving public health infrastructure to expand healthcare access and address health disparities, and fostering a thriving democracy.

We will support measures to assure, for every person and family in Maryland, equitable access to government services, benefits, and protections.

Economic justice requires continued enhancement of income supports including earned income and child tax credits, removal of all forms of discrimination or other barriers to education and employment (including barriers for returning citizens) and remediating the ongoing systemic effects of discrimination on the basis of race, sex, class, gender, sexual orientation, immigration status, language ability, country of origin, religion and other areas. 

We will prioritize language access for programs and services across governments. We will seek ways to protect Maryland’s residents without legal status by ensuring access to resources and legal protections, removing barriers to their participation in society and the economy, and upholding the citizenship rights of their children.

We will champion measures that strengthen democratic institutions and ensure that government processes are accessible, transparent, and accountable, prioritizing equity and the inclusion of historically marginalized communities.

Inadequate, unsafe, or unhealthy living conditions can destabilize or disrupt employment, the education of children, physical and mental well-being, and the connection of individuals and families with community and society.

We will seek effective implementation of Governor Moore’s housing and community development initiatives begun this year. Governments must also do more to increase the supply of affordable, decent homes in all parts of Maryland and assist those immediately in need of rental assistance and eviction prevention services. 

A healthy environment, including clean air, clean water, and equitable and just climate-friendly policies are critical to the health and sustainability of our community. We support the establishment of a state funding program to assist nonprofits with energy efficiency and renewable energy improvements, efforts to protect our Chesapeake Bay watershed, as well as justice for communities disproportionately affected by climate change, pollution, poor water quality, urban heat effects, and dumping in their neighborhoods. 

Beyond the classroom, the circumstances of poverty, housing, health care, nutrition, and treatment are all important determinants of educational attainment and social development. Child welfare systems are strained to meet the needs of Maryland’s children and youth who are most vulnerable, requiring resources and systems change to address significant disparities for children of color, those with disabilities, and LGBTQIA+ youth. 

We support the Blueprint for Maryland’s Future in education and must also focus attention on children with special needs and the state’s child welfare system, and on ensuring that government-funded service providers receive reimbursement rates sufficient to pay living wages.

In the aftermath of the COVID-19 pandemic, the shockingly disparate rate of mortality experienced among communities of color demonstrates the health impacts of social and financial inequities on access to care. Healthcare access and public health services are critical supports for our families, communities, and economy. 

Public policy must commit to the health and well-being of all by continuing efforts to expand access and reduce healthcare costs, including reproductive and gender-affirming healthcare, reasonable regulation of the price of prescription pharmaceuticals, and ensuring strong implementation of the Access to Care Act.

Efforts must continue to address the violence, mistreatment, and unfairness that continues in our communities, and in our system of criminal justice, as does abuse and neglect in too many family settings. Support for public policy, programs, and services for violence prevention, and assistance and protection for victims, must be sustained.