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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.
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?
The updated 2021 Legal Compliance Checklist will be available October 4!
Created by the North Carolina Center for Nonprofits and updated annually in the fall, the Legal Compliance Checklist for North Carolina Nonprofits outlines laws that affect North Carolina nonprofits’ governance, finances, advocacy, human resources, and fundraising.