NAM Testifies Before Appropriations Committee on LR 475, Highlighting Nonprofits’ Impact

NAM Testifies Before Appropriations Committee on LR 475, Highlighting Nonprofits’ Economic Impact and Accountability

On Friday, October 9, the Nonprofit Association of the Midlands (NAM) testified before the Nebraska Legislature’s Appropriations Committee on Legislative Resolution 475 (LR 475), an interim study examining state funding provided to nonprofit organizations.

NAM CEO Anne Hindery represented Nebraska’s nonprofit sector, highlighting the significant economic contributions nonprofits make across the state, the essential programs and services they provide, and the accountability measures already in place for organizations receiving public funds.

“Nebraska’s nonprofit sector is a significant part of our state’s economy,” Hindery told the committee. NAM’s 2025 Economic Impact Report found that Nebraska nonprofits generated $23.1 billion in revenue and spent approximately $20 billion in 2023. Nonprofits also employ approximately 10 percent of Nebraska’s workforce, or roughly 100,000 individuals.

“Nonprofits are not operating on the margins of our economy,” Hindery emphasized. “They are major employers and economic drivers, providing healthcare, human services, education, childcare, arts and culture, workforce development, and other essential services across Nebraska.”

These organizations play a vital role in strengthening communities, supporting local economies, and ensuring Nebraskans have access to the services they need.

During her testimony, Hindery also underscored the extensive reporting, oversight, and accountability requirements that apply to nonprofits receiving government funding. These include financial and program reporting, allowable-use requirements, and agency oversight, alongside internal governance practices and organizational accountability.

NAM promotes transparency within its own operations by making its annual reports, independent audits, and IRS Form 990 available on its website. The association also supports nonprofit accountability through its Guidelines and Principles Assessment, a tool designed to help organizations evaluate their governance practices, identify strengths and challenges, and plan for the future.

Through its Best Practice Partners program, NAM recognizes organizations that demonstrate a commitment to nonprofit organizational best practices.

“We recognize that a robust oversight framework is essential while recognizing the formal and informal structures already in place,” Hindery said. “We recommend that any changes improve nonprofits’ ability to deliver programs and services vital to Nebraskans while ensuring that tax dollars are spent appropriately.”

NAM believes transparency and accountability are essential for every organization receiving public dollars. At the same time, any new policies should recognize existing requirements and strengthen—not unnecessarily hinder—the ability of nonprofits to serve their communities.

NAM thanks Senator Andersen for meeting with the association and for engaging in a conversation about LR 475. We also appreciate Chairman Clements and the members of the Appropriations Committee for the opportunity to share our perspective and highlight the work of Nebraska’s nonprofit sector.

As the interim study moves forward, NAM looks forward to working with Senator Andersen and the committee to answer questions, provide additional information, and ensure policymakers understand the essential role nonprofits play in Nebraska’s economy and communities.

Our goal remains clear: to strengthen the nonprofit sector and the essential programs and services it provides to Nebraskans every day.

Watch the hearing: https://video.legislature.ne.gov/Wll0VmBgVFc.
Anne Hindery’s testimony begins at 15:11.

Learn more about NAM and our work to strengthen Nebraska’s nonprofit sector at nonprofitam.org