Financial Management

What You Need to Know About Major Nonprofit Tax Law Changes

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.

Suggestions for Employment Status to State Legislators

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Comments of David Heinen of the North Carolina Center for Nonprofits House Judiciary II Subcommittee on H.B. 482 – Tuesday, July 28, 2015

Thank you Mr. Chair.

On behalf of the North Carolina Center for Nonprofits, I wanted to bring to your attention a potential unintended consequence of the employee misclassification reform bill (H.B. 482) that could affect nonprofits. I was hoping the subcommittee would be amenable to a small clarifying change in a PCS.

Analysis Shows Negative Effects of Tax Reform Bills for the Work of North Carolina’s Nonprofits

FOR IMMEDIATE RELEASE
November 17, 2017

CONTACT: David Heinen, Vice President for Public Policy and Advocacy, 919-790-1555 x.111, dheinen@ncnonprofits.org

 

RALEIGH – A new analysis of the Tax Cuts and Jobs Act indicates that several provisions of the congressional tax reform plans would make it harder for charitable nonprofits throughout North Carolina to provide critical services in their communities.

Comments on Overtime Rules

Below is an excerpt. Download the full 7-page PDF at the bottom.

Melissa Smith
Director of the Division of Regulations, Legislation, and Interpretation
Wage and Hour Division
U.S. Department of Labor Room S-3502
200 Constitution Avenue
NW Washington, DC 20210

RE: Request for Information: Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees

Dear Ms. Smith:

Gift Substantiation Requirements

The North Carolina Center for Nonprofits submitted comments on the IRS proposed regulation for gift substantiation (IRS REG-138344-13) based on responses from charitable nonprofits and donors from all parts of North Carolina expressing serious concerns that the proposed regulation could create new costs and burdens for nonprofits, would create public confusion, and would reduce donations to charitable nonprofits that serve our communities (December 10, 2015).

 

Sales Tax Exemption

Under current law, charitable nonprofitsin 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.497 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?