Behind nearly every safety standard, technical innovation, and workforce development program lies an inconvenient truth for critics of associations: these organizations allow American industries to lead globally.
By bringing together common industry interests, associations provide infrastructure that the government cannot. Unlike corporations that maximize profits for shareholders, these mission-driven organizations reinvest every dollar into advancing their industries, ensuring businesses of all sizes thrive.
Trade associations and professional societies function as specialized knowledge hubs across sectors, pooling expertise from thousands of industry professionals to solve complex problems. From healthcare protocols and construction safety guidelines to the cleaning and disinfectant products that kept us safe during COVID-19, these organizations create frameworks that make modern commerce thrive.
Consider what is at stake. Who ensures buildings meet rigorous safety codes? Who safeguards food quality? Who sets the best standards for cybersecurity practices? Associations do.
Yet, proposed tax reforms threaten this vital ecosystem. Legislative proposals to tax non-donation revenue, including membership dues, educational programs, and certification fees, would diminish associations’ abilities to function effectively. The result? Fewer industry standards, reduced workforce training, and a loss of critical support services for businesses.
Beyond technical expertise, associations are also vital bridges between industry and government. They provide expert testimony grounded in real-world knowledge at congressional hearings, advise regulatory bodies, and serve as trusted resources for policymakers as they craft industry-specific policies. Without their insights, lawmakers risk creating ineffective policies that stifle innovation, business growth, and economic stability.
Taxing association revenue might seem like a way to offset tax breaks elsewhere, but it would weaken the organizations sustaining industry progress and workforce development. Associations reinvest in resources, training, and standards that benefit entire sectors. Stripping them of these funds would slow innovation, create gaps in professional education, and force government agencies to take on regulatory roles they aren’t equipped to handle. Undermining their financial foundation is short-sighted and dangerous. Instead of generating meaningful revenue, such taxation would place a heavier burden on businesses and workers, ultimately hindering economic progress rather than advancing it.
A BABY BONUS WON’T SOLVE OUR FERTILITY CRISIS, MARRIAGE WILL
Not only do mission-driven associations serve as vital bridges between industry innovation and the public good, but they are also critically important to America’s job market, directly supporting over one million jobs, generating $27.4 billion in annual taxes, and contributing more than $71 billion in wages across all 50 states.
The path forward is clear: We must protect and strengthen associations’ abilities to succeed and drive American industrial competitiveness, public safety, and economic growth. Eroding these organizations’ financial foundations will have wide-ranging and potentially dangerous ripple effects throughout society and the economy. Now is the time to reaffirm our commitment to these organizations and the indispensable role they play in shaping our nation’s future. The question is not whether we can afford to support them, but whether we can afford not to.
Stephen Caldeira is President and CEO of the Household and Commercial Products Association and Cochairwoman of the Community Impact Coalition.
Jennifer McNelly is CEO of the American Society of Safety Professionals.