Over the past six months, these weekly policy updates have mentioned a variety of state bills that could affect the operations of nonprofits. We know that many nonprofits are interested in some or all of these bills, so we are starting this week’s message with a quick update on the status of legislation affecting nonprofits.

The Center will continue to keep you posted on the status of these bills in upcoming policy updates. If you have questions about the status of these or other bills – or about advocacy strategies on legislation that your nonprofit supports or opposes – feel free to reach out to us for additional information or assistance.

Cities and counties throughout North Carolina are receiving (or in some cases, have recently received) American Rescue Plan (ARP) funding to help respond to the COVID-19 pandemic. Under the ARP, local governments can use this funding to provide relief to nonprofits that have suffered economic harm during the pandemic and can work in partnership with nonprofits to provide help to their communities.

Now is a great time for your nonprofit to reach out to your local elected officials (i.e., city council and county board of commissioners) with suggestions on how to best use their ARP funds. This could include creation of a local nonprofit relief fund (see the Center’s suggested criteria for a statewide fund as an example) or through investment in particular types of programs and services (or specific organizations) in your community.

To help you make your case to local officials, a new report from the National Council of Nonprofits provides insights into ways that local governments can use ARP funds to support communities in partnership with nonprofits. The report includes examples of successful models of nonprofit COVID-19 relief from around the country.

The NC House of Representatives is unlikely to begin the formal process of developing its version of the state budget for FY2021-23 until early August, more than a month after the beginning of the state’s fiscal year. Because the new state budget hasn’t been finalized, current state spending levels remain in effect for the beginning of the new fiscal year, meaning that state funding won’t be increased or revised to adapt to changing needs in the state.

Last month, the NC Senate approved its version of the state budget (S.105). Some nonprofit highlights in the Senate budget include:

Once the House approves its version of the budget, the House and Senate will negotiate with each other and with Governor Roy Cooper on a final version of the state budget. These negotiations could continue through the summer and into the fall. The Center has prepared a chart highlighting the appropriations and provisions in the Senate budget that affect nonprofits. The Center will update this chart once the House approves its version of the budget and once legislators agree on a final version of the budget to send to Governor Cooper.

With the House budget still a blank slate, the next two weeks are a great time to find your state House member and write to let them know what types of state funding would help your organization and your community. With billions of dollars available in unspent state revenue and ARP funding, the NC House of Representatives has the resources to address many important needs in this year’s state budget. Before you get started writing to your NC House member, take a few minutes to read these tips on how to write an effective letter to your elected officials – complete with an easy-to-use worksheet and samples of effective letters.

A bill (S.729) introduced in the NC Senate on Wednesday would place a constitutional amendment on the ballot during the March 2022 primary election to prohibit discrimination or preferential treatment in public employment, education, and contracting “on the basis of race, sex, color ethnicity, or national origin.” Potentially, this provision could prevent the state of North Carolina and local governments in the state from giving preferential treatment to nonprofits led by people of color or serving communities of color when awarding grants or contracts to organizations providing services to the public. The bill would need to pass with support of at least 60% of the members of the NC Senate and NC House of Representatives to be placed on the ballot next spring. Constitutional amendments don’t require gubernatorial approval, so Governor Cooper can’t veto the bill if it passes. Instead, it would be added to the North Carolina Constitution if a majority of voters approve it.

On July 2, Governor Cooper vetoed a bill (S.116) that would have withdrawn North Carolina from the Federal Pandemic Unemployment Compensation (FPUC) program that provides $300 weekly supplemental payments to unemployed workers. The bill also would have withdrawn North Carolina from the Mixed Earner Unemployment Compensation (MEUC) program.

The American Rescue Plan Act extended the FPUC and MEUC programs through September 6, 2021. Governors in 26 other states have announced plans to withdraw from federal unemployment benefit programs. Technically, the House and Senate could try to override Governor Cooper’s veto (it would require 60% of the members of each chamber to vote for an override). Practically, however, the veto means that North Carolina won’t withdraw early from these programs since the bill wouldn’t take effect until 30 days after it is enacted.

The U.S. Small Business Administration (SBA) has begun informing lenders that it is eliminating the loan necessity review for Paycheck Protection Program loans of $2 million or more. Last year, in response to revelations that publicly traded companies were accessing PPP funds intended for small businesses and nonprofits, the SBA began requiring entities seeking larger loans to submit a questionnaire (SBA Form 3510 for nonprofits) providing extensive financial details sufficient to demonstrate to SBA’s satisfaction “that economic uncertainty made the loan request necessary.” The National Council of Nonprofits and other national organizations objected to the form when it was first announced and urged the SBA to either withdraw or substantially revise SBA Form 3510.

Last month, Congressman David Price (D-NC) introduced the bipartisan Cultivating Opportunity and Recovery from the Pandemic through Service (CORPS) Act (H.R. 4100) in the U.S. House of Representatives. The bill would expand national service programs to provide meaningful service opportunities for individuals while supporting the needs of local communities and economies. Specifically, the bill would provide funding for more service positions through the Corporation for National and Community Service through 2024, increase stipends, provide flexibility in programs, and prioritize funding for communities disproportionately impacted by COVID-19 and using culturally competent and multilingual strategies. An identical bipartisan bill (S.1165) has been introduced in the U.S. Senate.

Second quarter lobbying expense reports are due to the NC Secretary of State by next Wednesday, July 21. Nonprofits that are registered as lobbyist principals and nonprofit staff and contractors registered as lobbyists must submit their expense reports each quarter. For more information on lobbying registration and reporting requirements, check out the Center's summary of NC lobbying laws for nonprofits.

The Center 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. Don’t miss out – become a member to ensure you continue receiving these updates along with many other valuable benefits.