New DOL Regulations on Overtime Pay

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:

Worker Misclassification and 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.

Nonprofits and tax reform

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:

Congress Makes Charitable Giving Incentives Permanent

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:

Comments on IRS Proposed Rules on Political Activity by 501(c)(4) Organizations

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