The Oregon Nonprofit Modernization Act

Origins of the NPMA and Latest News | Resources

One of the top obstacles standing in the way of nonprofits achieving their missions is government contracting practices and how they affect the wages of nonprofit workers. In 2023, Nonprofit Association of Oregon and Northwest Health Foundation convened a campaign team to explore a legislative fix to this issue. The 2023 campaign for Senate Bill 606, the Oregon Nonprofit Modernization Act, aimed to help Oregon’s nonprofits retain staff and continue providing essential services and promoting all Oregonians’ well-being.

With the passage of this law, a task force was formed to create recommendations to the legislature. You can read the Task Force’s full recommendations report here. These recommendations were then put into bill form, Senate Bill 602.

Unfortunately the 2025 Oregon legislative session ended without passage of SB 602. Despite strong advocacy and significant engagement and support from Oregon’s nonprofit community, the bill ultimately could not overcome fiscal concerns and timing challenges. The bill died in the Joint Ways & Means Committee, the legislature’s budget writing body.

Origins of the Oregon Nonprofit Modernization Act and Latest News

Four people wearing matching blue t-shirts sort food and clothes. One of the people holds a clipboard.

The State of Oregon relies on nonprofits to fill an essential role. Nonprofits promote the well-being of Oregonians every day, providing for basic needs like food and shelter, offering opportunities for education and economic advancement, supporting arts and culture, protecting our civil rights and so much more.

But nonprofits face a daunting barrier to fulfilling their essential role. Nonprofits cannot exist without nonprofit employees, and nonprofit employees have an incredibly high rate of burnout and turnover.

That’s why we campaigned for the Oregon Nonprofit Modernization Act during the 2023 legislative session.

The original Nonprofit Modernization Act included:

  • Easy and simple changes to government contracting practices that can be implemented right away and have an immediate impact.

  • A Nonprofit Task Force to take a close look at streamlining and simplifying contracting, improving payment delivery, reducing burdensome reporting requirements, and raising nonprofit wages to improve employee retention in the long-term.

  • A Workforce Retention Fund to help nonprofits retain employees in the short-term.

Resources