Is there a policy change you wish you could convince your state or local lawmakers to make? If so, we have a new program for you. The Center is launching the NC Nonprofit Public Policy Advocacy Academy to empower participating organizations with the concepts, skills, and coaching they need to develop effective public policy advocacy programs. This three-month program will help a small group of nonprofit leaders:

1. Develop their own organization-specific policy advocacy campaign strategy; 
2. Reach at least one milestone on the path toward achieving their desired policy goal; and
3. Develop the confidence and skills to continue their campaigns. 

The Center is currently accepting applications from individuals at nonprofit organizations based in and serving people in North Carolina. Check out the NC Nonprofit Public Policy Advocacy Academy resource page for more information and to apply.

Over the next few weeks, the Center will continue hosting Nonprofit Policy Conversations around the state to bring together nonprofit leaders and local elected officials (mostly state legislators) to discuss public policy issues that are important to charitable nonprofits and the people and communities they serve. At each Conversation, the Center will provide a briefing on 2023 state legislative priorities, nonprofit sector trends, and potential public policy solutions and challenges for nonprofits in 2023 and beyond. The Conversations also will include discussions about state and federal public policy issues of particular interest to local nonprofits.

The Center has already hosted events in Asheville, Charlotte, Winston-Salem, and Burlington, and is working with local partners to host upcoming events in Wilmington (February 10), Concord (February 24), Raleigh (March 6), and Fayetteville (TBD). Registration is open for the Burlington, Wilmington, Concord, and Raleigh events. While we request a registration fee in support of these events, please let us know if this is a barrier to participating as we can assist if asked.

A bill (S.48) filed in the NC Senate on Tuesday would repeal North Carolina’s Certificate of Need (CON) law. The state’s CON law limits health care providers’ ability to offer a variety of health-related services. Hospitals and health systems – many of which are 501(c)(3) nonprofits – are concerned that repealing, or making major changes to, the state’s CON law could significantly reduce their revenue, potentially causing some hospitals to close. Proponents of CON repeal argue that the existing law limits the ability of healthcare providers other than hospitals – including some nonprofits – from providing a variety of types of services. The bill is similar to legislation that has been filed in the Senate in similar sessions.

Last year, the Senate approved legislation rolling back parts of the state’s CON law as part of its Medicaid expansion bill that would have extended Medicaid health coverage to about 600,000 North Carolinians in the health coverage gap. The House didn’t include CON changes when it passed Medicaid expansion last year. The disagreement between the two chambers about whether to make changes to the CON law was one of the main reasons they couldn’t agree on Medicaid expansion.

A new bill (S.58) filed in the NC Senate on Wednesday 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 two months ago 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. A separate House bill (H.B. 21) filed last week would require public utilities to provide security systems to prevent vandalism and other security threats at substations.

Last month, NC Child published an excellent legislative advocacy guide, which includes useful information on the legislative process, advocacy tips, and resources for tracking what’s happening at the General Assembly. NC Child also published a blog post with six tips for legislative advocates for children in North Carolina. While both resources are targeted for nonprofits advocating for children, most of the information can be helpful for any nonprofit advocating at the General Assembly this year.

NC Attorney General Josh Stein issued an alert yesterday about a scam in which businesses are receiving fake annual report notices with links to “renew” their businesses for fees of up to $500. It is unclear whether any nonprofits have been targeted with these false notices. Under current law, North Carolina nonprofit corporations are not required to file annual reports with the NC Secretary of State or any other state agency. Nonprofits in most other states need to file an annual report to maintain their nonprofit corporate status.

Because nonprofits incorporated in North Carolina do not file basic annual reports with the state, many defunct nonprofit corporations continue to exist as legal entities in North Carolina. Currently, more than 140,000 nonprofits are incorporated in North Carolina, while an estimated 36,000 tax-exempt organizations file some variation of the Form 990 with the IRS. This large and growing number of defunct (but still existing) nonprofits makes oversight of the state’s nonprofits more challenging and creates an opportunity for potential fraud and abuse. To help preserve the integrity of the nonprofit sector, the Center is advocating for legislators to create a new simple, no-fee annual report for North Carolina nonprofits this year as part of broader legislation to modernize North Carolina’s nonprofit corporation statute. An annual reporting requirement would also enable the state to contact nonprofits directly about scams like this one since it would ensure that the state has current contact information for all nonprofits.

With the 2023 legislative session now officially underway, the Center is interested in learning how well nonprofit leaders know the people who represent them in the NC General Assembly - and how well you'd like to know them. This information helps us better understand which state legislators are already familiar with nonprofits serving their communities. It also helps us develop resources to help you strengthen (or initiate) your relationship with your local state legislators so you can be a strong(er) advocate for policy solutions related to your organization’s mission. Please fill out this brief survey to let us know. Thank you if you have already completed it!

A bill (S.62) filed in the NC Senate yesterday would create independent boards for three state schools for individuals with disabilities. One provision in the bill would enable the schools to create independent nonprofits to raise private funds to support their operations. Unfortunately, the bill requires that these nonprofits “shall not engage in partisan political activity or policy advocacy.” While the prohibition on partisan political activity makes sense and is the same limitation that is in place for any 501(c)(3), the limitation on “policy advocacy” may be problematic for nonprofits established to support these school. Because “policy advocacy” is a very broad term, this limitation could prevent nonprofits formed by these schools from engaging in many forms of legal and legitimate policy advocacy such as educating the public about policy issues and advocating with local governments on matters affecting their organizations’ operations or the people they serve.

Governor Roy Cooper vetoed a similar bill (S.593) that was introduced and quickly passed near the end of last year’s legislative session. At the time, the Center explained to legislators and the Governor’s staff that the bill could set a troublesome precedent by limiting the ability of a few 501(c)(3) nonprofits to engage in policy advocacy. The Center will continue to work with legislators to educate them that 501(c)(3) nonprofits can – and often should – legally engage in policy advocacy and to ensure that future legislation doesn’t set unreasonable limits on some nonprofits’ advocacy.

An identical bill (H.B. 11) was introduced in the NC House of Representatives last week. The language in the two new bills tracks a similar (and similarly problematic) provision in state law that prohibits nonprofits formed by local school systems from engaging in “partisan political activity” or “policy advocacy.” The Center is trying to learn whether any nonprofits have been created under the existing law and, if so, how the law has limited those organizations’ advocacy efforts. Let us know if your nonprofit was created to support a local school system or if you know of any nonprofits in your area that were created by school systems.

A bill (S.52) filed in the NC Senate on Wednesday would make the NC High School Athletic Association, a nonprofit that administers interscholastic high school athletic activities in North Carolina, subject to state open meeting laws like a government agency. Generally, nonprofits are not subject to state open meeting or public records laws, even if they contract with the state to provide programs and services. The Center opposes government policies that limit nonprofits’ governance as independent, nongovernmental corporations with control over their own organizational policies and practices. The Center has long taken the position that nonprofits should be independent, nongovernmental organizations with control over their own organizational policies and practices and that nonprofits should not be treated as quasi-governmental that are subject to open meeting and public records laws. While we are aware that a few other nonprofits are currently subject to open meeting and public records laws, we are concerned that legislation imposing these requirements on additional nonprofits can set a precedent of the state limiting the ability of a nonprofit organization to operate as an independent organization.

The Center provides Nonprofit Policy Update each week as a benefit to its nonprofit members. However, to help all North Carolina nonprofits respond to continuing challenges from the COVID-19 pandemic, we're temporarily providing this newsletter to non-member nonprofits. Become a member to ensure you continue receiving these updates along with many other valuable benefits.