Nonprofit Operations

Last updated July 8, 2022


State Policies Affecting Nonprofit Operations

Regulation of nonprofits

  • Support legislation to create simple, no-fee annual reports for nonprofits.
  • Support adequate funding for regulation of nonprofits by the NC Secretary of State.
  • Support policies creating official or unofficial state agency liaisons with nonprofits.
  • Oppose “mandatory volunteerism” requirements for recipients of government services, since these can create financial and administrative burdens for nonprofits.
  • Support clarifications and modernizations of nonprofit corporation and charitable solicitation laws that enable nonprofit organizations to operate efficiently, effectively, and in a manner consistent with best practices for the nonprofit sector.
  • Support legislation to allow nonprofit corporations with members to conduct membership meetings remotely.


Laws affecting nonprofits as employers


Nonprofit funding and fundraising

Nonprofit fundraising events: Lawmakers should ensure that any rule changes for nonprofit fundraising events, such as charitable gaming, are clear and consistent with best practices for nonprofits.

  • Support legislation to expand opportunities for nonprofit fundraising events.
  • Support legislation that promotes access to capital for nonprofits


Nonprofit independence

  • Oppose policies that limit nonprofits’ governance as independent, nongovernmental corporations with control over their own organizational policies and practices.


Election laws

Because nonprofits serve many people who are less likely to turn out to vote – including people with disabilities, low-income citizens, and young people – it is important for nonprofits to share clear and accurate (and nonpartisan!) information about the state’s ever-changing electoral process. As demand for voting by mail has significantly increased this year due to the COVID-19 pandemic, it is important for North Carolinians to be able to vote safely and easily by mail.

  • Oppose election law changes that make it more difficult for people to vote, since these changes ultimately diminish nonprofits’ policy influence by reducing the civic participation of people served by nonprofits, including low-income North Carolinians, seniors, and individuals with disabilities.


Benefit corporations.

  • Support policies that would formally recognize benefit corporations in North Carolina law and provide legal protections to benefit corporations and their board members. Benefit corporations have been important partners with nonprofits in North Carolina.


Federal Policies Affecting Nonprofit Operations

Regulation of nonprofits

  • Support adequate funding for the IRS to provide reasonable regulation and oversight of tax-exempt organizations.
  • The Center's 2022 federal policy efforts include advocating for the Nonprofit Sector Strength and Partnership Act.


Laws affecting nonprofits as employers

  • Support policies that enable nonprofits to provide affordable and quality benefits for their employees.
  • Support labor laws and regulations that treat nonprofits similarly to for-profit businesses and that provide adequate protections for nonprofit employees and clients while not creating unreasonable unexpected new costs for nonprofits. In particular, it is essential that any significant changes to labor laws and regulations provide adequate transition periods for nonprofits to absorb increased costs due to fixed reimbursement rates under government grants and contracts or through limits imposed by private funders.
  • Oppose policies – such as elimination of student loan forgiveness programs – that would harm nonprofit employees.
  • The Center's 2022 federal policy efforts include advocating for Reinstating the Employee Retention Tax Credit and The Volunteer Driver Tax Appreciation Act of 2022.


Nonprofit independence and advocacy

  • Oppose new restrictions on nonprofit advocacy rights.
  • Support policies that would limit the influence of political donors on policymaking. This would help level the playing field for advocacy by nonpartisan nonprofits.



Still curious? For on-going coverage of operations-related policies affecting nonprofits, become a Member of the Center to receive weekly Public Policy Updates.