Legal Compliance & Transparency

North Carolina Nonprofits Oppose TABOR

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Charitable nonprofits across North Carolina are concerned that the Taxpayer Protection Act(also known as TABOR) would harm nonprofits that provide essential services in every community in our state. If TABOR (S.607) passed as a constitutional amendment, it would likely lead to new taxes, fewer private contributions, and increased burdens on charitable nonprofits.

 

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.  

Tax Reform Implications for Nonprofits

David Heinen, Vice President for Public Policy and Advocacy, North Carolina Center for Nonprofits

November 16, 2017

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 501(c)(3) nonprofits. 

Sales Tax Exemption

Under current law, charitable nonprofits in North Carolina pay sales and use tax on their purchases and can apply for semi-annual refunds of the taxes they pay. A system of sales tax exemption would save nonprofits time and reduce administrative burdens. S.346 would replace the nonprofit sales tax refund system with sales tax exemption for most 501(c)(3) nonprofits.

How does the current nonprofit sales tax refund system work?

NC Election Law Changes

In August 2013, the N.C. General Assembly passed H.B. 589, the Voter Information Verification Act (VIVA), which makes several significant changes to North Carolina’s election laws. In June 2015, the General Assembly passed a number of other election law changes, some aimed at revising VIVA provisions. Because nonprofits are among the most trusted institutions in their communities, it is important that they provide accurate, nonpartisan information to their staff, volunteers, and those they serve about the election process.