Charitable Deduction

Expanding Charitable Deduction Could Help Nonprofits and Businesses

In 2011, the N.C. House of Representatives overwhelmingly passed H.B. 886, which would bring the North Carolina corporate tax deduction for charitable contributions into conformance with federal law. This would help more small businesses contribute to nonprofits. The N.C. Center for Nonprofits encourages the N.C. Senate to pass this bill during the 2012 short session.



Potential Tax Increases

Potential Tax Increases from Not Conforming on the IRA Charitable Rollover

In 2013 and 2014, North Carolina decoupled from the extension of tax-free distributions from IRAs to public charities (the IRA charitable rollover). The 2016 IRC Update legislation (S.726) would decouple on this provision again for 2015 and future tax years. This tax change creates a significant tax increase for some retired North Carolinians who made charitable contributions from their IRAs.