Federal agencies are now working to streamline the federal grants process. We are conducting an online survey of nonprofits to provide input to the agencies on priorities. In 1999, Congress passed the Federal Financial Assistance Management Improvement Act, Public Law 106-107 initiating a process to create uniform grant applications and reports. (The law is the result of nonprofits advocating for this streamlining process and passed Congress unanimously.) Federal agencies are now working to implement the law, and a major focus of the program is E-Grants.

The faith-based initiative compromise bill introduced in the Senate by Sens. Joe Lieberman (C-CT) and Rick Santorum (R-PA) is expected to come before the Senate Finance Committee before Memorial Day, and rumors about substitute bills and amendments continue to circulate.

The Federal Election Commission (FEC) has published its first proposed rules implementing the new Bipartisan Campaign Finance Reform Act of 2002 (BCRA). They address soft money issues, which primarily impact political parties and campaign committees. However, nonprofits are impacted by new restrictions on some donations to 501(c) and 527 organizations involved in voter education and get-out-the-vote (GOTV) activities.

While the Internal Revenue Service (IRS) still has not issued general guidance on how tax applies to exempt organizations' use of the Internet, a new rule on links for corporate sponsors may provide a clue on what direction the IRS will take.