A Reflection on the 2025 ASAE Fly-In
From Austin to All of Texas: The Massive Economic Impact of Associations
As an Austin, Texas-headquartered company, I represented nearly 50 employees from Texas, 1,857 associations, and 27,650 association employees, according to a 2019 TSAE research study. Texas associations generated 3.2 billion dollars for the Texas economy, supported 124,430 jobs, and generated 2.5 billion in economic spending related to association meetings and events.
What happens when lawmakers need to find $4.5 trillion under the metaphorical couch cushions? If you’re a tax-exempt organization, the answer might be too close to home. As discussions heat up in Washington over extending the 2017 Tax Cuts and Jobs Act (TCJA), the nonprofit and association sectors are staring down a familiar barrel: becoming the next big “pay-for.”
Having participated in legislative action, advocacy, and fly-in days for over a decade at Personify, this year brought even greater significance to our thousands of association and non-profit clients and the 70,000+ association employees who use our solutions daily. As Mary Kate Cunningham of ASAE shared, “This is the potentially largest impact on associations in over 50 years!”
Meetings That Matter: How 20 Minutes Can Shape Policy
Even in these turbulent times, I have always approached this day with reverence and excitement. Part of it is seeing so many colleagues fly in from all over the country (300 this year with this sold-out event). The other is that my own efforts can make a difference and be part of the solution to move the industry forward and showcase the Power of Associations. Walking the halls of where our country’s most significant decisions are made is such a rush.
Each meeting with representatives and their staff is meticulously planned, and each delegation spends the day prior preparing talking points, understanding the issues, and genuinely delivering messages that matter to each member of Congress. Most meetings are roughly 20 minutes and allow each delegation member to share the potential impact on their organization or customers and, more importantly, the impact on each representative’s constituents.
Misunderstood and Under Fire: The Trillion-Dollar Question
So how did we get here, what’s at stake, and how you can—and must—respond? Let’s start with the elephant-sized spreadsheet in the room. Just extending the core provisions of the TCJA is estimated to cost over $4.5 trillion. That doesn’t even include the grab bag of additional tax priorities lawmakers want to cram into the package.
That kind of spending requires offsets, and some lawmakers have started considering tax-exempt organizations—yes, the very ones filling in where the government often falls short—as a source of revenue.
Jason Smith, Chair of the House Ways and Means Committee, and Scott Hodge, a familiar name in anti-tax circles, have both voiced skepticism about whether certain tax-exempt entities deserve their current status. From accusations of partisanship to complaints about unfair competition with for-profits, the narrative is shifting—and not in our favor.
Red Flags Are Waving
Here’s what ASAE leaders are seeing:
- Tax-exempt organizations were included in the House Oversight Plan—and not in a good way.
- The House Budget Committee’s “pay-for” list specifically mentions scaling back deductions for charitable contributions and targeting nonprofit revenue streams.
- Hill insiders report that lawmakers are being instructed to submit lists of potential revenue sources, including creative options like taxing nonprofit income at corporate rates.
In other words, a storm is forming, and we can’t afford to ignore it.
The Real Problem? A Serious Education Gap
“Don’t assume they know what you do,” warned Allie, a lead advocate with the Community Impact Coalition. She’s been on the front lines in DC, meeting with lawmakers and staffers who—frankly—don’t understand the nonprofit landscape beyond food banks and homeless shelters.
That’s not a knock. It’s a reality. With a wave of new lawmakers and even more new staffers, many weren’t around when the TCJA was first written (we witnessed this firsthand in many of our appointments). They don’t know the rationale behind tax exemption. They don’t see how associations support professional standards, research, public health, or industry safety. And they don’t understand the impact of those services disappearing. Associations offset and do the work where the government often doesn’t or can’t exist.
The Power of a Good Story (and a Good Analogy)
If data doesn’t move them, stories will. Allie shared examples that have created real lightbulb moments for staffers that we frequently use in our meetings:
- Goodwill vs. a retail clothing store: Both sell goods. Only one uses that revenue to provide community services. The other lines a shareholder’s pocket.
- YMCA vs. a for-profit gym: Sure, they both offer a place to sweat. But only the Y uses those fees to fund kids’ summer camps and community programming.
These analogies help demystify why tax-exempt orgs are… well, exempt. They serve a mission, not a bottom line.
Unity Over Division: No Picking Winners and Losers
Here’s where things get trickier. Some lawmakers want to play favorites—targeting advocacy organizations or politically active nonprofits while leaving others alone. That’s a dangerous precedent.
“We don’t want to start cherry-picking who gets to keep their status,” Allie stressed. Today, it might be groups you don’t align with. Tomorrow, it could be yours. The IRS determines tax-exempt eligibility, not politicians. That’s how it should stay.
What Happens Next (and Why YOU Should Care)
While the legislative process is still in its early stages, movement is underway. Ways and Means Republicans are holding closed-door sessions right now to workshop the framework of the next tax bill. The pressure is on to deliver a package—fast.
Advocacy doesn’t end after Fly-In Day is over. We must continue to advocate, educate, and communicate to our lawmakers about the Power of Associations and what we all do to support this vibrant and critical component of our world. Your stories make a difference, and regardless of your experience in advocacy, I encourage you to get involved!
You can also watch the day’s recap video here.