State level

State Budget 2016


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:

Suggestions for Simplifying State Nonprofit Tax Laws

Download full article at bottom

Problem #1: The sales tax refund process is less efficient than a system of tax exemption

Problem #2: State law allows the IRS to arbitrarily deny sales tax refunds to some North Carolina nonprofits

Problem #3: Nonprofits are confused whether they need to collect and remit sales tax on their fundraising events

Problem #4: The exemption from sales tax on admission fees for “volunteer-only” nonprofits is confusing and unnecessary

Nonprofit Tax Exemption Talking Points

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.

Charitable Giving Cap

Below is an excerpt. Download the full 2-page PDF at bottom.

Capping State Itemized Deductions Would Reduce Charitable Giving In North Carolina

North Carolina’s nonprofit sector is concerned that the $20,000 cap on itemized deductions in the Senate budget would harm communities across the state by reducing charitable giving.  

  • North Carolinians gave $5.9 billion in charitable contributions in 2012, the most recent year for which federal income tax data is available.