Jeanne Tedrow to Retire As Center’s President & CEO

This week, Jeanne Tedrow, the Center’s President & CEO, announced that she will be retiring at the end of the calendar year after more than 40 years of service to nonprofit organizations and North Carolina’s nonprofit sector. You can read Jeanne’s message and a note of gratitude from the Center’s board of directors on the Center’s website. The Center is accepting applications for the position of President & CEO through July 14. Take a minute to read the position profile and share with colleagues who may be interested – or apply for the position yourself.

NC House Finance Committee Approves Legislation to Modernize Nonprofit Laws

On Wednesday, the House Finance committee approved a bill (H.B. 741) that would make important changes to two state laws affecting nonprofits. Specifically, the bill would reform the state charitable solicitation licensing statute and would make a variety of changes to modernize the NC Nonprofit Corporation Act to bring it into closer alignment with best practices for nonprofits and with nonprofit corporation laws in other states. The Center has recommended this legislation based on input from nonprofits and from attorneys and accountants who represent nonprofit organizations. 

The House Finance Committee removed a provision from the bill that would have limited the NC Department of Justice’s authority to review asset transfers involving nonprofits that are dissolving. The Center supported this change to the bill and is working with the Department to ensure that the review process helps protect the integrity of the nonprofit sector while minimizing burdens on nonprofits – particularly small organizations – that are going out of business. 

The House Rules Committee is expected to take up the bill next week and then send it to the full House for a vote.

NC Members of Congress Receptive to Policy Solutions to Help Nonprofits

On Wednesday, Center staff met with 11 of the 16 members of our state’s congressional delegation and/or their staff. We talked with them about trends in North Carolina’s nonprofits sector, noting that most nonprofits have experienced an increase in demand for their services in recent years, but that many organizations are struggling since charitable giving is down and there is a shortage of paid workers and volunteers among North Carolina nonprofits. We also shared three federal policy solutions that could help address the challenges currently facing charitable nonprofits:

1. Passing the Charitable Act (S. 566/H.R. 3435), which would create a universal charitable deduction that would encourage people to give more generously to nonprofits;
2. Increasing the volunteer mileage rate (currently set at 14 cents per mile) to make it more affordable for volunteers to use their vehicles to provide services on behalf of nonprofits; 
3. Passing legislation to give nonprofits a greater voice in policy decisions at the federal level.

North Carolina’s members of Congress were receptive to supporting these three bipartisan policy solutions. The Center is following up with them to encourage them to become co-sponsors of these bills and to help them advance in Congress later this year.

Legislators Continue Work on State Budget Negotiations

Two weeks out from the start of a new fiscal year, legislative leaders are still negotiating details of the final version of the state budget for FY2023-25 (H.B. 259). Unlike with the federal government, there is no risk of a state government shutdown if a budget isn’t in place by July 1. Under state law, spending levels will continue at current levels until a new state budget becomes law. Even without the threat of a government shutdown, legislators and Governor Roy Cooper have two reasons to try to come to agreement on a new state budget soon:

1. Medicaid expansion in North Carolina cannot begin until a new state budget is in place; and
2. Without a new state budget, legislators cannot make adjustments to existing spending levels to account for inflation and new or changing needs in communities, and legislators cannot make changes to state tax laws.

To help your nonprofit better understand the differences between the two competing versions of the state budget, the Center has prepared an analysis of the nonprofit provisions and appropriations in the House and Senate budgets and a tutorial video on the state budget.

NC Senate Regulatory Reform Bill Would Improve Nonprofit Raffle Laws

On Wednesday, the NC Senate Agriculture, Energy, and Environment Committee approved regulatory reform legislation (H.B. 600). The bill includes a variety of provisions intended to cut red tape by reducing a variety of state and local government regulations, including many environmental rules. 

The Senate regulatory reform bill includes a provision that would make two improvements to the state law on nonprofit raffles:

1. It would allow nonprofits to hold up to five raffles per year. Under current law, nonprofits can hold up to four raffles per year.
2. It would increase the maximum value of real estate that nonprofits can raffle each year from $500,000 to $2.25 million. Nonprofits occasionally receive houses or other real estate as bequests or donations. For some nonprofits, the best way to make use of this donated property is to raffle it as a high-value fundraiser to support the organization’s programs and services. With increased property values in recent years, the current $500,000 threshold may be well below the value of property that nonprofits receive and may want to raffle. The bill requires that any real estate raffled by a nonprofit is free of liens or encumbrances – essentially ensuring that a nonprofit isn’t raffling property that will come with significant and unexpected costs for supporters of the organization. 

The Center supports these changes since this provision would create new (or at least improved) fundraising opportunities for some nonprofits. 

The House passed the regulatory reform bill last month. The Senate Rules Committee would need to approve the bill before the Senate votes on it.

Nonprofits Can Submit Comments on Voter ID Rules Through Next Friday

In April, the NC Supreme Court issued a decision reinstating a 2018 law that requires North Carolinians to show photo identification when voting in elections. Many nonprofit organizations have expressed concerns that the voter ID law could make voting more difficult for many people served by nonprofits, particularly seniors, people with disabilities, and low-income citizens. Voter ID requirements will go into effect for this fall’s municipal elections. 

Two weeks ago, the NC State Board of Elections published proposals for two temporary rules to implement the photo ID requirements for in-person and absentee-by-mail voters in North Carolina, beginning with the 2023 municipal elections. Both proposed rules are open for public comment through Friday, June 23. Nonprofits who serve people who may be affected by the new photo ID requirements may want to consider submitting comments on the proposed rules. NCSBE has posted the text of the rules and information for how to submit comments. If you need help getting started, the National Council of Nonprofits has useful tips for nonprofits on submitting public comments to proposed rules.

NC Senate Committee Approves Election Law Changes

Yesterday, the NC Senate Elections and Redistricting Committee approved a bill (S.747) that would make a variety of changes to state election laws. Several of these changes could affect nonprofits and the people they serve, including:

1. A provision that would prohibit nonprofits from providing funding to the State Board of Elections or to county election boards. In the past, legislators have expressed concern that some organizations – including nonpartisan 501(c)(3) nonprofits – could provide funding to local elections boards to bolster support in communities with strong partisan leanings. The committee amended the bill to clarify that nonprofits can make in-kind donations of facilities to be used as voting sites.
2. A provision that would eliminate the three-day grace period after Election Day for receipt of absentee ballots. This change would mean that absentee ballots would need to be received by the county board of elections by 7:30 p.m. on Election Day.
3. A requirement that voters who use same-day registration during Early Voting must submit a provisional ballot if the documents that they use to verify their identity when they register to vote have different addresses. This change could lead to more challenges of ballots from people who registered or updated their registration during Early Voting. Many nonprofits encourage their staff, volunteers, and clients to vote early.

The committee also approved a separate bill (S.749) that would change the appointment and structure of the NC State Board of Elections (NCSBE) and county election boards. Currently, the five-member board is appointed by the Governor, with three members of the Governor’s political party and two members of the other major political party. The bill would create an eight-member board – with four members from each major political party – that would be appointed by legislative leaders. Currently, local boards of elections have five members, with four (two from each major political party) appointed by NCSBE and one chosen by the Governor. The bill would instead create four-member election boards (two from each major political party) that would be appointed by legislative leaders.

The Senate Rules Committee must approve both bills before the full Senate votes on them.

NC Senate Approves BCBSNC Restructuring Legislation

Last Friday, Governor Cooper signed into law a bill (H.B. 346) that allows the state’s two hospital service corporations – BlueCross BlueShield of North Carolina (BCBSNC) and Delta Dental Plans Association – to create “nonprofit holding corporations” to restructure some of their assets. Under prior law, hospital service corporations are regulated by the NC Department of Insurance, and these entities need state approval for many types of transactions. This legislation enables hospital service corporations to move some or all of their operations to other nonprofits that are not regulated by the NC Department of Insurance, potentially cutting red tape that can undercut their ability to make investments or engage in certain transactions.

NC Senate Approves Bill to Help Prevent Future Power Disruptions

This week, both the NC Senate and NC House of Representatives unanimously approved a bill (S.58) that would create new criminal penalties for anyone who knowingly and willfully damages or destroys energy facilities and other utility infrastructure in the state. The legislation was filed in response to an incident last fall that left most of Moore County without power for several days. That incident created hardships for nonprofits that had to provide increased services to the community while the organizations themselves were without power. The bill now goes to Governor Cooper for his consideration.

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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.