Early this morning, the U.S. Senate and U.S. House of Representatives approved a bipartisan agreement to end another brief federal government shutdown by setting federal funding levels for the next two years. The bill, which funds the federal government through March 23, allows Congress to increase defense spending by $165 billion over the next two years and to increase domestic spending - including funding for many programs that are important to the work of nonprofits - by $131 billion over the same period.
On May 19, the House of Representatives gave final approval to its version of the state budget (H.B. 1030) for FY 2016-17. Overall, the House budget, which passed with a 103-12 vote, would maintain or increase most state funding for nonprofits. Some highlights for nonprofits include:
Below is an excerpt. Download the full 4-page PDF at bottom.
Below is an excerpt. Download the full 2-page PDF at bottom.
Comments of David Heinen of the N.C. Center for Nonprofits House Appropriations Committee – Wednesday, July 29, 2015
Thank you Mr. Chair. While individual nonprofits have many concerns with a variety of provisions in the Senate budget, the nonprofit sector has two main concerns about the tax plan in the Senate budget:
Impact of Nonprofit Provisions in Senate Tax Proposal (2015)
Why Is Nonprofit Tax Exemption Essential for North Carolina?
1. It protects taxpayers.
- Nonprofits provide essential services that government would have to provide otherwise. Tax exemption costs much less than the cost of government having to provide the services itself.
- Nonprofits provide public benefits in exchange for tax exemption.
- Organizations may choose not to locate in counties or states that do not grant tax exemption. This is a potential loss for the people and economy in those locations.
The N.C. General Assembly has approved the state budget for FY2017-18.
The Center has prepared a chart comparing a variety of issues affecting nonprofits in the House and Senate budget proposals and the final budget.