At the Center’s recommendation, both the House and Senate included a provision in their regulatory reform bills that could save money for many small nonprofits with fewer than three employees. Under state law, any employer with three or more employees is required to purchase workers’ compensation insurance. The definition of “employee” in the current law includes nonprofit board officers, meaning that small nonprofits with three or more board officers (i.e. almost all nonprofits) are required to take on an often unnecessary expense.
In 2011, the N.C. House of Representatives overwhelmingly passed H.B. 886, which would bring the North Carolina corporate tax deduction for charitable contributions into conformance with federal law. This would help more small businesses contribute to nonprofits. The N.C. Center for Nonprofits encourages the N.C. Senate to pass this bill during the 2012 short session.
An Essential Role for Nonprofits
Why should your nonprofit get involved?
- It strengthens your nonprofit’s voice. Elected officials know who votes. They pay less attention to communities with low voter turnout.
On May 18, the U.S. Labor Department (DOL) announced overtime final regulations that will mean that most employees earning less than $47,476 per year will be entitled to overtime compensation, regardless of whether they are currently classified as executive, administrative, or professional (white-collar) workers. The new overtime rules take effect on December 1, 2016. Here are key details about the new rule and how it will apply to nonprofits:
The N.C. General Assembly is considering a bill (H.B. 482) that would create new penalties for nonprofits and businesses that improperly classify their workers as independent contractors rather than employees. Nonprofits that misclassify their employees and fail to provide benefits such as workers’ compensation or unemployment insurance benefits could face fines ($1,000 per misclassified worker) and could be barred from state contracts for five years.
The General Assembly is in the final stages of its efforts to restructure North Carolina's tax system. The House and Senate are considering different version of legislation (H.B. 998) to lower tax rates and simplify the state tax system. It is essential that tax reform not harm nonprofits. Specifically:
The North Carolina General Assembly is nearing final approveal of legislation (S.114) to create a new annual filing requirement for nonprofits that are incorporated in North Carolina. Main requirements of the bill include:
The Status (and Future) of the Overtime Rule
What Nonprofits Need to Know
Congress Makes Charitable Giving Incentives Permanent
Leaders in Congress have reached agreement on an historic bipartisan agreement on a tax bill that will have real impact on the work of charitable nonprofits. The Protecting Americans from Tax Hikes Act of 2015 or PATH Act, which was part of the omnibus budget (HR 2029), permanently extends three charitable giving incentives:
The Center has submitted comments asking the Internal Revenue Service and the Treasury Department to develop rules that will preserve the rights of 501(c)(3) nonprofits to engage in nonpartisan civic engagement. The Center’s comments are in response to proposed regulations on political activity by 501(c)(4) social welfare organizations. The confusing language of the proposal would likely discourage foundations from supporting advocacy an