This year, the Center has been working with state lawmakers on seven legislative proposals to help strengthen nonprofits’ operations. 

The seven current legislative proposals to help nonprofits are:

The Center recommended these ideas to legislators based on input we have received from nonprofits, and we will continue to work with lawmakers to encourage them to pass each of these proposals this session.

To help us understand which of these proposals would be most helpful to your nonprofit – and to help us make it easy for you to take meaningful action on these bills – we encourage you to take five minutes to complete a short survey about these policy solutions and your ability to speak with legislators about nonprofit sector policy issues.

The Center is developing plans to advocate for legislators to include a nonprofit relief fund in the next state COVID-19 response package. Your input is essential in coming up with a plan to provide meaningful relief for nonprofits. Specifically, it would be helpful to know what type of economic hardships your nonprofit has experienced due to COVID-19, so we can advocate for a grant program with appropriate eligibility criteria. Examples of possible criteria could include:

Let us know what type of eligibility criteria for a nonprofit relief fund would make the most sense for your nonprofit and other organizations in your community. Thank you if your nonprofit has already provided input.

Yesterday, the NC Senate unanimously approved a bill (S.410) that would make it easier for nonprofits with members to conduct meetings remotely and for nonprofit board members to use email to take action by unanimous written consent. Under current law, nonprofits with members must conduct meetings in person (although this requirement has been temporarily suspended during the COVID-19 pandemic, as described below), and nonprofits need board approval (typically in a provision in the nonprofit’s bylaws) to use email or other means of electronic communication for unanimous written consent votes of boards.

The Center appreciates Senator Amy Galey (R-Alamance) for introducing this bill and for working with the Center to make several significant improvements to it during committee hearings this week. The bill now moves to the NC House of Representatives for consideration. Last month, the House unanimously approved a similar bill (H.B 320). The Center is working with legislators to ensure that one of these bills becomes law this year.

Today the IRS issued a fact sheet explaining that under the American Rescue Plan Act, employers (including nonprofits) are entitled to refundable payroll tax credits for providing paid leave to employees who take time off related to COVID-19 vaccinations. The tax credits are available to eligible employers that pay for sick and family leave taken between April 1 and September 30. The fact sheet provides helpful tips about which employers are eligible, the leave for which the tax credits can be claimed, the amount of the credits and how they are calculated, and how to claim the credit.

The U.S. Small Business Administration announced last week that money available for Paycheck Protection Program (PPP) loans is likely to run out in the first week of May. Congress appropriated nearly $300 billion to restart the PPP and expand the forgivable loan program in laws passed in December 2020 and March 2021, and recently extended the application period through May. However, loan applications will be rejected once the funds are committed unless Congress provides more funding, which is not currently being discussed.

Yesterday, the NC House of Representatives gave final approval to a bill (H.B. 334) to ensure that North Carolina businesses do not have to pay state income tax on the forgivable amounts of their PPP loans. Nonprofits are generally exempt from paying state corporate income tax but some organizations pay state tax on unrelated business income. Based on the Center’s analysis, the forgivable portion of PPP loans should generally not be taxable for charitable nonprofits, but this bill would provide greater certainty to nonprofits that received PPP loans.

Earlier this week the bill was amended to also exclude unemployment benefits from state income taxes. This change could help reduce tax burdens on nonprofit employees and clients who have been out of work during the pandemic. The Senate would still need to approve the bill before it goes to Governor Roy Cooper for his signature.

A bill (S.717) filed in the NC Senate last week would place a constitutional amendment on the November 2022 ballot to limit the growth of state spending. The proposed constitutional amendment, known as the Taxpayer Bill of Rights or TABOR, would make several changes:

In the past, the Center has opposed similar proposals to create a TABOR constitutional amendment in North Carolina. If enacted, TABOR would limit the ability of state and local governments to pay for services provided by nonprofits, while at the same time relying on nonprofits to provide more public services that governments can no longer afford to offer. Colorado is the only state that has fully implemented a version of TABOR. According to the Colorado Nonprofit Association: “TABOR has undermined the ability of Colorado nonprofits to meet current demands for services and respond to future changes in economic conditions, population growth, and the costs of delivering public services.”

To become law, the constitutional amendment would need to pass both the House and Senate by 60% super-majority votes (meaning it would need bipartisan support). If legislators approve it, a majority of voters would need to vote in favor of it on the November 2022 ballot. Unlike most bills, the Governor cannot veto constitutional amendments (and does not need to sign them into law).

This week, Healthier Together, a partnership between the NC Department of Health and Human Services (DHHS) and the NC Counts Coalition, announced a new grant program that will provide resources to help community-based nonprofits provide equitable access to COVID-19 vaccines. Healthier Together will provide grants to organizations supporting North Carolina communities that experience health inequities to ensure that individuals from Black, Indigenous, and People of Color (BIPOC) and other historically marginalized populations are able to access vaccines. Grants will fund activities to conduct vaccine outreach and education efforts, help people schedule appointments and arrange transportation, coordinate local vaccine events at trusted and accessible locations, provide on-site interpretation services, and help ensure people get to second dose appointments. The application period runs from Tuesday, April 27 through Friday, May 14 . For more information, check out the RFP webpage or join a free informational webinar on Monday, April 26 from 6:30-7:30 p.m.

A bipartisan bill (H.B. 605) filed in the NC House of Representatives on Monday would require the NC State Board of Elections to provide clear and easily available answers to a variety of frequently asked questions about election laws. It also would require these FAQs to be posted at voting sites throughout the state. The improved availability of clear, accurate, and nonpartisan information about elections would complement nonprofits’ voter education work. The House Election Law and Campaign Finance Committee unanimously approved the bill on Wednesday. Two more committees would need to approve it before it goes before the full House.

A bill (H.B. 636) filed in the NC House of Representatives on Wednesday would create a new grant program to help nonprofits, businesses, and local governments develop, implement, and expand clean energy and energy efficiency innovations and research. Nonprofits with fewer than 100 employees would be eligible for the grants.

Thank you for reading this update. Before you move on to your next email, please FORWARD it to a few nonprofit colleagues who you feel would value this information. Let them know to read to the end for the link to sign up to receive weekly policy updates throughout the pandemic, or better yet to join the Center as a member to receive these and other regular updates, along with many other valuable resources.