Senator San Nicolas Proposes GovGuam Agencies Allow Payroll Deductions for Those Who Want to Donate to Non-Profits

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Guam – Senator Michael San Nicolas has introduced a bill to address the up to 20% reduction in federal funding for various non-profit programs on Guam.

Bill #214 would require all government of Guam agencies to offer payroll deductions to 501(c)(3) organizations so that GovGuam employees can donate directly to the island non-profits.

READ Bill #214 HERE

In addition, Senator San Nicolas says he is working with Assistant Attorney General Carol Sanchez to begin establishing more non-profit 501(c)(3) organizations within GovGuam agencies that receive federal grants in order to boost their ability to generate donations.

San Nicolas says in a release that it seems likely that the federal government will continue to cut spending by reducing grants Guam needs “to be prepared to offset the loss or reduction of federal grants with local support in order to protect and continue critical government and non-profit services to our community.”

READ Senator San Nicolas’ release below:

Senator San Nicolas Seeks Solution to Federal Funding Cuts

In a roundtable discussion held by Senator San Nicolas and the Legislative Committee on Future Generations on Wednesday Oct. 23 with various government and non-profit Youth Service providers, it was determined that programs dependent on federal funding have seen a reduction in federal monies to support their programs over the last few years, in some cases up to 20%.  Senator San Nicolas is concerned that this trend will continue.

“The budgetary environment of the federal government appears to be on a long-term trend to reduce expenses, to include grant awards. We need to be prepared to offset the loss or reduction of federal grants with local support in order to protect and continue critical government and non-profit services to our community.”

One of the programs at risk of being eliminated is Sanctuary’s Transitional Living Program, which helps transition homeless youth into stable environments.  The roundtable also revealed that TRIO programs that help our youth attend the University of Guam, as well as programs within Child Protective Services, and Guam Behavioral Health and Wellness are all at risk of service reductions as a result of lower federal grants.

Other programs throughout the Government of Guam and the non-profit community are likely facing similar funding threats.

To address this issue, Senator San Nicolas has enlisted the support of the Attorney General’s Office through attorney Carol Sanchez to begin establishing non-profit 501(c)(3) organizations within government agencies that receive federal grants, in order to boost their ability to generate donation based revenue. Additionally, Senator San Nicolas has introduced Bill 214-32 (COR) that would require all government of Guam agencies to offer payroll deduction services to 501(c)(3) organizations for their employees so that they can donate directly to these non-profits.

“The people of Guam are extraordinarily generous, especially when it comes to causes championed by our non-profit organizations. The best response to lower federal grants is a community response where we are able to match our generosity with the causes we support. Establishing 501(c)(3) non-profit channels in our government agencies will provide a new way for community support to go directly to the agency mission they support. Additionally, facilitating the donation process through payroll deductions makes it easier for donors to directly support our local 501(c)(3) non-profit organizations, track donor donations for tax filing purposes, and provide a steady stream of cash that would be consistent for the organizations to plan around,” stated Senator San Nicolas.

In addition to Bill 214-32 (COR) that will enable non-profit donations to be payroll deducted in the Government of Guam, Senator San Nicolas hopes to further expand this payroll deduction drive to include federal employees and the private sector.