Center Submits Comment on Proposed DOL Overtime Rule

The U.S. Department of Labor (DOL) recently released new proposed regulations on the salary threshold under the Fair Labor Standards Act (FLSA). The proposed regulations would increase the salary threshold for overtime pay by nearly 55% over the current level to $55,068 per year. The salary threshold in the final regulations may be even higher than the level in the proposed regulations – possibly as high as $60,209 per year. Were this proposal to take effect, most employees earning less than the new salary threshold would be entitled to overtime compensation when they work more than 40 hours in a workweek regardless of whether they are classified as executive, administrative, or professional (white-collar) workers.

The Center anticipates that this change would affect thousands of North Carolina nonprofits. We are offering two (free) ways to learn more about the proposed rule:

1. Read our analysis of the proposed regulations and their potential impact on nonprofit organizations (which concludes with 15 compliance options and eight next steps for nonprofits); and
2. Watch the recording of our brief overview of the proposed regulations from our town hall meeting yesterday.

Nonprofits and others have until November 7 to submit public comments on the proposed rule. The Center heard from nearly 100 nonprofits about the potential impact of the proposed rule on their missions and operations. Based on these comments, the Center submitted comments to DOL this morning to explain the impact of the proposed rule on North Carolina nonprofits, to share that many North Carolina nonprofits approach the proposed regulations with a mixed sense of moral support and operational anxiety, and to recommend possible changes in the final rule that could help minimize operational challenges for nonprofit organizations. Among other things, the Center recommended that DOL should:

1. Phase in the implementation of the salary level threshold increase over several years to minimize immediate operational costs for nonprofits;
2. Set the threshold no higher than $55,068 during the initial phase-in period;
3. Provide better clarity in its final rule on the actual compliance costs of the higher salary level threshold for nonprofits and other employers;
4. Actively encourage government and philanthropic grantmakers and the donating public to consider increasing their investment in nonprofits’ operational costs to offset the higher payroll expenses that will accompany this rule change; and
5. Provide guidance to help nonprofits assess whether common nonprofit jobs – including fundraising/development staff, volunteer managers, and child care workers – meet one or more of the duties tests for executive, administrative, and professional workers.

Take 2 Minutes to Sign on to Nonprofit Letter Supporting Streamlining Federal Grants Act

The Streamlining Federal Grants Act, a bipartisan bill in both the U.S. Senate and U.S. House of Representatives would help address many of the challenges that nonprofits experience with federal grants. Among other things, the bill would establish a Grants Council that would provide guidance to federal agencies on: streamlining and simplifying grant applications and reporting requirements; improving nonprofits’ user experiences with federal grants; and soliciting input from nonprofits and other partners on ways to improve the delivery of services to communities through federal grants.

To help encourage Congress to pass the Streamlining Federal Grants Act, a coalition of nonprofits led by the National Council of Nonprofits is sending a letter to leaders in Congress asking them to take action on it. The Center has already signed on to the letter, and we encourage your nonprofit to take two minutes to add your organization’s name to the letter (particularly if your nonprofit receives federal grants). The deadline to sign on to the letter is November 11.

Take (Another) 2 Minutes to Sign on to Nonprofit Letter Supporting Charitable Act

The annual Giving USA report found that individual giving declined by 13.4% last year. The Charitable Act (S. 566/H.R. 3435) would create a universal charitable deduction that would help offset recent reductions in individual philanthropy by encouraging people to give more generously to nonprofits. Specifically, the Charitable Act would create an above-the-line tax deduction (i.e., a tax deduction that taxpayers can claim on their Forms 1040 regardless of whether they use the standard deduction or itemized deductions) for non-itemizers who make charitable contributions. The deduction would be capped at one-third of the standard deduction (about $4,600 for individuals and $9,200 for couples).

In advance of next month’s Giving Tuesday, a coalition of nonprofits is sending a letter to leaders in Congress asking them to pass the Charitable Act. The Center has already signed on to this letter, and we encourage your nonprofit to take two (more) minutes to add your organization’s name to the letter. The deadline to sign on to this letter is November 17.

Have Questions about Nonprofits and the 2023 Election? We Have Answers!



Tuesday, November 7 is Election Day in many parts of North Carolina. The Center has been fielding questions about what types of election-related activities are legal and advisable for charitable nonprofits, and we have posted answers to 31 of the most common questions we are hearing. We have included information on several new state election laws that could affect your nonprofit and the people you serve, including the new requirement to show a photo ID when voting. Let us know of other questions you have about your nonprofit’s engagement in the 2023 election.

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Nonprofit Policy Update is North Carolina Center for Nonprofits' weekly newsletter of state and federal policy issues that affect all 501(c)(3) nonprofits. Learn about the Center's public policy priorities and agenda, or contact David Heinen, Vice President for Public Policy and Advocacy, for more information.

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