Bipartisan Bill to Enhance Nonprofits’ Fundraising Capabilities Stalls in Pennsylvania House - fundsforNGOs

A bipartisan bill aimed at enhancing the fundraising capabilities of nonprofits, particularly volunteer fire companies, has stalled in the Pennsylvania House of Representatives. The legislation, which would allow these organizations to accept cashless payments for raffle ticket sales, was not brought up for a final vote before lawmakers adjourned for the year. Advocates argue that the current law, which only permits cash and checks, is outdated and hinders the financial sustainability of these essential community services.

Key Takeaways

The bill would enable nonprofits to accept credit, debit, and mobile payments for raffle ticket sales.
Current law restricts nonprofits to cash and checks, which is increasingly seen as outdated.
The bill passed the state Senate and House Commerce Committee but was not considered by the state House before the session ended.
The legislation will need to be reintroduced in 2025.

Background

The proposed legislation, co-sponsored by State Senator Devlin Robinson (R-Allegheny) and State Senator Wayne Fontana (D-Allegheny), is seen as critical for the financial survival of volunteer fire companies and similar organizations. These groups rely heavily on fundraising events, such as raffles, to support their operations. The inability to accept cashless payments limits their ability to adapt to changing consumer preferences, especially as cash usage declines.

Legislative Journey

The bill successfully passed through the GOP-controlled state Senate and the House Commerce Committee earlier this year. However, it faced a roadblock in the state House, which is narrowly controlled by Democrats. According to Elizabeth Rementer, a spokesperson for the state House Democrats, there was no significant feedback from nonprofits indicating that this was a pressing issue, although they are open to revisiting it in the next session.

Implications for Nonprofits

The inability to accept cashless payments has significant implications for nonprofits, particularly in the wake of the COVID-19 pandemic, which forced many organizations to shift their fundraising efforts online. Some fire companies received warnings from county treasurers about potential violations of their licenses when attempting to accept electronic payments. This has created a climate of uncertainty, with some organizations hesitant to embrace cashless options due to fears of fines or losing their permits.

Financial Challenges

The Howard Volunteer Fire Company in Centre County, for example, operates on an annual budget of approximately $140,000. Their fundraising efforts, including events like the Punkin‘ Chunkin‘ Fall Festival, are vital for maintaining operations. The most recent festival raised an estimated $30,000, but rising utility costs, expensive fuel, and high equipment training expenses continue to strain their finances.

Mark Ott, a fire police captain at the Howard Volunteer Fire Company, expressed frustration over the stalled legislation, stating, "Approving cashless payments won’t solve every challenge these groups face, but it’s one way lawmakers could help. To me, it’s a no-brainer. Just pass it."

Next Steps

With the legislative session concluded, the bill will need to be reintroduced in 2025. Advocates for the bill continue to lobby for its passage, emphasizing the need for modernization in fundraising practices to ensure the sustainability of nonprofits that serve critical roles in their communities. The ongoing dialogue around this issue highlights the importance of adapting to contemporary payment methods to support the financial health of these organizations.