This fall, Congress is in the process of rewriting the Internal Revenue Code with the dual goals of lowering individual and corporate income tax rates and simplifying our nation's tax laws. This tax overhaul has major implications for all 501(c)(3) nonprofits. Among other things, the tax reform proposals could reduce charitable giving, politicize 501(c)(3) nonprofits, eliminate financing options for nonprofits, and create new taxes on certain nonprofit activities.
Start Planning Now: New Overtime Rules Will Take Effect on December 1, 2016
The U.S. Department of Labor's (DOL) new overtime regulations will mean that many more employees of North Carolina nonprofits will be entitled to overtime pay when they work more than 40 hours per week. These changes, which will take effect on December 1, 2016, will affect thousands of nonprofits in North Carolina.
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
On September 25, 2017, the Center submitted comments to the U.S. Department of Labor (DOL) on suggestions for the ways that future regulations of overtime pay under the Fair Labor Standards Act (FLSA) could affect North Carolina nonprofits.
As Congress considers major tax reform in 2017, it is likely to revisit tax incentives for charitable giving. The Center recently sent a letter to all of North Carolina's members of Congress encouraging them to preserve or expand incentives for charitable giving as they contemplate tax reform this year.
Expanding Charitable Deduction Could Help Small Businesses
The Senate should pass H.B. 886 in 2012 to bring the North Carolina corporate tax deduction for charitable contributions into conformance with federal law could ease tax burdens on small businesses. H.B. 886 passed the House in 2011 with strong bipartisan support.
What is the federal law?