Last night, President-elect Joe Biden released a framework for his comprehensive plan to address the COVID-19 crisis. His $1.9 trillion plan would focus on:

Some highlights of the plan, which would require congressional approval, include:

The 19-page framework does not provide details on whether the plan would address some of nonprofits’ ongoing needs, including expansion of the temporary universal charitable deduction and extension and expansion of the partial federal forgiveness of unemployment expenses for reimbursing nonprofits. The Biden Administration will likely work with Congress to fill in the details of this plan and to pass it soon after President-elect Biden’s inauguration next Wednesday.

The COVID-19 relief bill that Congress passed late last month creates new opportunities for nonprofits that did not previously receive a Paycheck Protection Program (PPP) loan to apply for a first-draw loan and for nonprofits that already received a PPP loan to apply for a second-draw loan. The SBA has established a three-phase schedule for processing new PPP loan applications:

The SBA has posted a variety of information and guidance on PPP loans and is expected to continue to update this information in the coming weeks. The deadline for applying for new PPP loans is March 31, 2021.

For more information about changes to the PPP and other parts of the recently-passed COVID-19 relief legislation, check out the Center’s analysis of provisions affecting nonprofits and a recording of the recent Nonprofit Town Hall briefing from the National Council of Nonprofits.

COVID-19 infections and hospitalizations remain at record high levels in North Carolina and across the nation, and community spread is expected to continue for the near future. As the most challenging part of the pandemic persists, it is essential for every nonprofit to remind their staff, boards, volunteers, clients, and communities to take steps to minimize the further spread of COVID-19.

Nonprofits are trusted messengers, and many North Carolinians are more likely to take important public health actions if the message comes from a familiar nonprofit organization rather than a government official. Your nonprofit can make a big difference in fighting the pandemic by spreading the word about the importance of taking necessary steps to protect the public health. The next two items provide details about specific messages your nonprofit can share with your staff, boards, volunteers, clients and communities.

Yesterday, the NC Department of Health and Human Services (DHHS) announced that COVID-19 vaccine providers are ready to begin offering vaccinations to adults who are 65 and older and to all health care workers. However, many people who now qualify are not yet aware they can receive the vaccine, don’t know it’s free, and/or don’t know how to get one.

As trusted messengers with access to staff, board members, volunteers, clients, and community members who are age 65 and older, many nonprofits are ideally positioned to bridge this knowledge gap by sharing this vital information through verbal, print, and electronic communications. Here are two resources you can share:

For months, DHHS has emphasized the importance of practicing the “three Ws”:

It is important for your nonprofit to continue to share clear and accurate information about these public health measures with your staff, boards, volunteers, clients, and community members. Here are two helpful resources from DHHS:

Late last month, a federal court issued a preliminary injunction blocking Executive Order 13950 that sought to undermine workplace trainings on equity, diversity, and inclusion. As a result of the court order, the Office of Federal Contract Compliance Programs (OFCCP) issued a notice announcing that it will not enforce clauses that were included in recent federal contracts or subcontracts as a result of the executive order and that is has shut down the hotline for complaints about noncompliance. There is a strong chance that the Biden administration will rescind the executive order next week. As a result of the court decision, nonprofits with federal grants or contracts should be able to resume all workplace trainings on topics related to race and gender equity, diversity, and inclusion without any fear of repercussions from the federal government.

The NC General Assembly opened its 2021 session on Wednesday with both the House of Representatives (H.R. 1) and the Senate (S.R. 1) adopting their rules for this year. Nonprofits that plan to work on state legislation this year should be aware of several important deadlines in these rules:

Lawmakers will return to Raleigh to begin considering legislation on Wednesday, January 27. Typically, hundreds of bills are introduced in the first few weeks of legislative business, but the House and the Senate usually don’t vote on many bills during the opening weeks of a session. This year, however, legislators are expected to pass COVID-19 relief measures and other bipartisan legislation soon after they start their work later this month.

This spring, legislators will begin developing a state budget for FY2021-23. The General Assembly and Governor Cooper were unable to agree on a budget the past two years, so legislators have funded the state by making small changes to the last enacted state budget (from FY2018-19).

Last month, the Center released the 2021 Public Policy Agenda for North Carolina’s Nonprofit Sector. The Center advocates on state and federal public policy issues that affect all or most 501(c)(3) nonprofits in North Carolina. The public policy agenda highlights many of the specific issues that will be policy priorities next year, including COVID-19 relief, tax policy, government grants and contracts with nonprofits, and policy solutions related to nonprofit operations. The Center plans to offer webinars on public policy issues affecting nonprofits later this winter and/or spring.

Nonprofits that paid individuals $600 or more as independent contractors in 2020 must file the new IRS Form 1099-NEC with the IRS and with these contractors by February 1. In the past, nonprofits used IRS Form 1099-MISC to report non-employee compensation to contractors. For 2020, nonprofits should still use Form 1099-MISC to report compensation of $600 or more paid to attorneys and for raffle prizes of $600 or more. The Form 1099-MISC is also due by February 1.

The U.S. Supreme Court will soon consider two cases challenging a California law that requires charitable nonprofits to disclose donor information to state officials. The cases argue that the California disclosure rule infringes nonprofits’ First Amendment rights. The California law requires nonprofits to disclose to the state – but not to the public – donor information from Schedule B of Form 990.

The COVID-19 relief bill that was signed into law last month did not extend the paid sick leave and paid family and medical leave requirements from the Families First Coronavirus Response Act (FFCRA). Under FFCRA, most employers (including most nonprofits) with fewer than 500 employees were required to provide up to 80 hours of paid sick leave (at worker’s full rate of pay) and up to 10 weeks of paid family and medical leave (at 60% of workers’ regular rate of pay) for any employees who were out of work due to COVID-19. These mandates on paid leave expired on December 31, 2020.

The new COVID-19 legislation does, however, allow nonprofits and other employers that had been covered by the FFCRA paid leave mandates to continue to receive refundable payroll tax credits if they provide paid sick leave and paid family and medical leave in a manner consistent with FFCRA mandates (if they were still in effect) between January 1, 2021 and March 31, 2021. For example, if a nonprofit offered 10 weeks of paid family and medical leave at 60% of employees’ usual rate of pay in 2020 and continues to offer this paid family and medical leave in 2021, it can receive a payroll tax credit to cover the cost of any leave taken by employees in the first three months of 2021.

The UNC School of Government has a helpful analysis of considerations for local government employers in deciding whether to continue to offer paid sick leave and paid family and medical leave during the first quarter of 2021. This analysis is also useful for nonprofit employers. The U.S. Department of Labor also has updated its FAQs on FFCRA paid leave to address the expiration of the FFCRA paid leave mandates.

Last week, the U.S. Department of Labor (DOL) issued two opinion letters addressing whether certain types of employees are exempt from the overtime pay requirements of the Fair Labor Standards Act (FLSA). One opinion letter found that certain account managers at life-science companies are exempt from FLSA because they work with a high degree of autonomy and independent judgment. The other opinion letter found that some teachers at religious day-care centers may be exempt from FLSA because they were effectively working as ministers. While both of these opinion letters are case-specific, the analysis might help nonprofits understand the factors to consider in assessing whether their employees are exempt from FLSA overtime pay requirements.

Nonprofits that were registered as lobbyist principals in 2020 (and their staff or contractors who were registered as lobbyists) must file their final quarterly reports with the Secretary of State Lobbying Compliance Division by January 25, 2021. Lobbyist principals need to use the special fourth quarter expense reports (now available online) that include the cumulative total payments to lobbyists for their salaries and fees reasonably allocated for lobbying. To help you understand the basics of state lobbying laws affecting nonprofits, check out the Center's summary of NC lobbying laws for nonprofits.

Also, the NC Secretary of State has opened lobbying registration for 2021. Lobbyist principals (i.e. nonprofits that lobby) and lobbyists (i.e. nonprofit employees and contractors who lobby on behalf of nonprofits) must register annually with the Secretary of State.