January 29, 2021
Note: The North Carolina Center for Nonprofits typically provides Nonprofit Policy Update each week as a benefit to its nonprofit members. However, to help all North Carolina nonprofits respond to the COVID-19 pandemic, we're temporarily providing this newsletter to non-member nonprofits.
In this issue...
Take 1 minute to join national letter in support of COVID relief for nonprofits
Federal COVID relief plans vague on nonprofit issues
NC General Assembly could consider nonprofit issues this year
Governor Cooper extends phase 3 of reopening through February 28
Take 1 Minute to Join National Letter in Support of COVID Relief for Nonprofits
This week, more than 1,700 nonprofits from all 50 states have signed on to a letter asking  
President Biden and leaders in Congress to include four key nonprofit provisions in the next COVID relief legislation:
  1. Provide financial relief that is available to all nonprofits;
  2. Strengthen incentives for charitable giving;
  3. Hold nonprofits harmless for unemployment claims during the pandemic; and
  4. Provide additional support to state and local governments.

Please take one minute to add your nonprofit’s name to this national sign-on letter urging federal policymakers to include these provisions in the next COVID relief legislation. See the next item for details on the four nonprofit sector priorities.

We know from experience that policy proposals like these have a much greater chance of adoption when the constituents they’re meant to help show their support by contacting their lawmakers. With your help, we can show every member of North Carolina’s congressional delegation that nonprofits in their districts want these measures. Thank you if your organization has already signed on to the letter.
Federal COVID Relief Plans Vague on Nonprofit Issues
President Biden’s framework for a $1.9 trillion COVID relief bill does not make clear if it would address four issues that would help ensure nonprofits have the resources needed to continue to provide essential services in our communities during and after the pandemic:
  1. Providing nonprofit-specific grants, forgivable loans, and refundable tax credits for all nonprofits. Some nonprofits are unable to take advantage of the second-draw Paycheck Protection Program (PPP) loans because they have more than 500 employees and/or they did not experience a 25% decline in revenue during any quarter of 2020. Nonprofits are seeking a special version of the PPP that is more closely tailored to nonprofits’ finances and operations, as well as passage of the updated WORK NOW Act (to provide grants to help frontline nonprofit service providers maintain and expand their work forces) and other emergency grants.
  2. Strengthening charitable giving incentives by increasing and extending the above-the-line deduction while preserving the itemized charitable contribution deduction. Currently, the universal charitable deduction expires after 2021 and is capped at $300 for individuals and $600 for married couples.
  3. Providing 100% unemployment benefit reimbursement to nonprofits that self-insure these benefits, both retroactively to 2020 and extended through the first three quarters of 2021. Currently, the federal government is covering 50% of these costs, and North Carolina is covering the other 50%. Federal legislation holding nonprofits harmless for these costs would provide certainty that organizations will not face an additional wave of financial hardship later in 2021.
  4. Providing substantial financial aid to state and local governments to avoid layoffs and cuts to essential programs and services, and to prevent governments from imposing new costs and burdens on their nonprofit partners. 

Leaders in Congress are beginning to work on details of the legislation and still determining whether to negotiate a bipartisan COVID relief package or to include additional pandemic relief as part of a budget reconciliation bill that Democrats could pass in party-line votes in the U.S. Senate and U.S. House of Representatives.
NC General Assembly Could Consider Nonprofit Issues This Year
The NC General Assembly began its 2021 legislative session on Wednesday. While lawmakers did not vote on any bills this week, Senators and Representatives introduced more than 60 pieces of legislation. None of these new bills directly affects the nonprofit sector. However, legislators will almost certainly consider dozens of proposals that will affect nonprofits in the coming months.  

The Center advocates on policy issues that affect all or most 501(c)(3) nonprofits in North Carolina. This year, we will be asking legislators to consider several proposals that would help nonprofits operate more effectively including:

Throughout the legislative session, the Center will keep you posted when legislators introduce bills to help nonprofits operate more effectively to provide essential services in our communities. We’ll also let you know when there is need for your nonprofit to take action to advocate for legislators to help nonprofits.

The Center’s legislative priorities are based on input from charitable nonprofits. Let us know if our 2021 Public Policy Agenda for North Carolina’s Nonprofit Sector is missing something important that would help your nonprofit and other organizations throughout North Carolina.
Governor Cooper Extends Phase 3 of Reopening Through February 28
On Wednesday, Governor Cooper issued Executive Order No. 189, which extends Phase 3 of the reopening of North Carolina’s economy by three weeks, through February 28. The executive order also extends existing curfews (between 10 p.m. and 5 a.m.) and face covering mandates through February 28.
North Carolina Center for Nonprofits
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Nonprofit Policy Update is a weekly newsletter for current members of the North Carolina Center for Nonprofits. We track state and federal policy issues that affect all 501(c)(3) nonprofits. Learn about the Center's public policy priorities. For more information, contact David Heinen, Vice President for Public Policy and Advocacy.