Let Us Know: What Should We Tell NC’s Members of Congress about Nonprofits?

Next week, staff from the North Carolina Center for Nonprofits will be in Washington, D.C. to meet with several members of our state’s congressional delegation. We’re planning to talk with them about four federal policy solutions that could help 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;
4. Developing solutions to challenges that nonprofits experience with their government grants and contracts.

Let us know if there are other federal nonprofit policy priorities you would like for us to mention during these meetings or if there are any points you would like us to emphasize on these four issues.

Legislators Continue Work on State Budget Negotiations

NC Senate and NC House of Representatives leaders continued to meet behind closed doors to negotiate a final version of the state budget for FY2023-25 (H.B. 259). Legislative leaders hope to finish negotiations within the next two weeks so they can have the state budget in place before the start of the new fiscal year on July 1, 2023. 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 Increase Threshold for Nonprofit Real Estate Raffles

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 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 the bill since this provision would create a new (or at least improved) fundraising opportunity for some nonprofits. Last month, the House approved a similar bill (H.B. 374) that would raise the maximum value of real estate that a nonprofit can raffle each year to $2 million. 

The House passed the regulatory reform bill last month. Two more Senate committees would need to approve the bill before the Senate votes on it.

Nonprofits Can Submit Comments on Voter ID Rules Through June 23

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. 

Last Friday, 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 Approves Bill That Could Limit Nonprofits’ Ability to Provide Some Types of Training to Government Agencies

On Tuesday, the NC Senate gave final approval to a bill (S.364) that would prohibit state agencies from offering workplace trainings covering 13 specific topics related to race and gender equity (see page 2 of the bill text for a listing of the 13 topics). This would mean that nonprofits that offer trainings to state employees would no longer be able to include content on topics related to equity, diversity, and inclusion in these trainings. The bill would allow contractors (including nonprofits) providing trainings for state agencies to answer questions about these topics as long as they are clear that the state agency does not endorse these concepts. 

While the bill passed the House in a party-line vote last week, the Senate approved the bill on Tuesday with some bipartisan support. The bill now goes to Governor Cooper for his consideration. Because the bill passed both chambers with enough votes to override a veto, it is likely to become law regardless of what action Governor Cooper takes on it. The bill would take effect on December 1, 2023.

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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.