In Case You Missed This Morning’s NC Nonprofit Town Hall on Proposed DOL Overtime, Join a Second One Next Thursday

The U.S. Department of Labor (DOL) recently released new proposed regulations on the salary threshold under the Fair Labor Standards Act (FLSA). The proposed regulations would increase the salary threshold for overtime pay by nearly 55% over the current level to $55,068 per year. The salary threshold in the final regulations may be even higher than the level in the proposed regulations – possibly as high as $60,209 per year. Were this proposal to take effect, most employees earning less than the new salary threshold would be entitled to overtime compensation when they work more than 40 hours in a workweek regardless of whether they are classified as executive, administrative, or professional (white-collar) workers. The Center anticipates that this change would affect thousands of North Carolina nonprofits, and we have prepared an analysis of the proposed regulations and their potential impact on nonprofit organizations..

Because the proposed regulations appear to be relevant for so many North Carolina nonprofits, the Center is hosting a second free virtual town hall next Thursday, October 26 from 9:30-11:00 a.m. to give nonprofits an opportunity to share their input on the DOL’s latest overtime proposal. During the town hall, you will have the opportunity to share how the higher salary threshold would affect your staff and your nonprofit’s budget and to let us know ways DOL could minimize any challenges of the higher salary threshold in its final regulations and any additional support the Center can provide for nonprofits as they navigate this change. The town hall will open with a brief overview of the proposed regulations, tips on submitting public comments, and an overview of compliance options for nonprofits. Register now! Note: If you signed up for this morning’s town hall and indicated on the registration page that you could not attend, you don’t need to re-register for the one next Thursday.

Nonprofits and others have until November 7 to submit public comments on the proposed rule. The Center is preparing comments to explain to DOL: (1) the impact of the proposed rule on North Carolina nonprofits; and (2) possible changes in the final rule that could help minimize operational challenges for nonprofit organizations. To help the Center best advocate for the needs of North Carolina nonprofits in our comments to DOL, it is critical that we give clear examples of the potential impact of a higher salary threshold on the operations of charitable nonprofits with exempt administrative, executive, or professional staff who are currently paid salaries below the proposed threshold.

Center Offers Analysis of Impact of New Law on Nonprofit Training Programs

A new state law (S.364) that takes effect on December 1 could affect some training programs offered by North Carolina nonprofits. The law will prohibit any “state employee training program” from promoting 13 specific concepts, most of which are related to race and gender. Over the past few months, nonprofits have asked the Center a variety of questions to assess whether the law will apply to training programs their organization offers and, if so, what changes they may need to make to be compliant. To help your nonprofit better understand the law and its possible implications for your training programs, the Center has posted a synopsis of some of the questions we received – along with our best attempts at answers.

Senator Budd Introduces Legislation to Raise Volunteer Mileage Rate

Last week, Senator Ted Budd (R-NC) joined two Democratic Senators from Minnesota to introduce the Senate version of the Volunteer Driver Tax Appreciation Act (S.3020/H.R.3032). The bill would increase the charitable mileage rate for nonprofit volunteer drivers delivering people or products on behalf of nonprofits to the standard business rate, currently set at 65.5 cents per mile, and eliminate taxation of mileage reimbursements up to the business rate. The current charitable mileage rate, set in 1998, is only 14 cents per mile. The Center is working with Senator Budd’s staff to help build momentum for this bill in Congress.

Center Asks Legislators to Reconsider Lobbying Fee Changes

A provision in this year’s state budget increases the annual fee for lobbyist principals (including many nonprofits that lobby) and lobbyists (including many nonprofit staff and contractors) from $250 per year to $500 per year. This means that any nonprofit that registers to lobby with the state must pay a fee of at least $1,000 – and more if the organization has multiple registered lobbyists. North Carolina’s new lobbyist principal fee is, by far, the highest of any state in the country, and the lobbyist registration fee is also among the highest in the country. 

The fee increases could create financial challenges for small and mid-sized nonprofits that advocate with the state legislature or state agencies and could discourage some nonprofits from lobbying or registering their staff as lobbyists. Check out the Center’s recently updated summary of North Carolina lobbying laws for nonprofits for details on when nonprofits and their staff need to register. The Center opposed this provision in the budget, and we have reached out to a variety of legislative leaders to advocate for them to provide relief to nonprofits that lobby by rescinding the fee increase or creating lower fees for 501(c)(3) nonprofits.

Legislators to Vote on Redistricting Plans Next Week

Next Tuesday and Wednesday, the NC Senate and NC House of Representatives will vote on plans for North Carolina’s 14 congressional districts, 50 state Senate districts, and 120 state House districts to be used in the 2024, 2026, 2028, and 2030 elections. Earlier this week, the chairs of the Senate and House redistricting committees released two options for the state’s congressional districts and the plans for the NC Senate and NC House of Representatives. While federal law prohibits redistricting plans that dilute the voting power of racial minorities, a NC Supreme Court decision from earlier this year allows legislators to gerrymander districts to gain a partisan political advantage. During hearings of the Senate and House redistricting committees on Thursday, legislators who drew the maps emphasized that partisan political advantage was an important factor behind the maps that were chosen.

To learn more about the proposals that will be considered next week, use the links below to see maps of the proposed new districts, along with “stat packs” (which have data on voter registration, racial composition, and past election results for each district):

• Congressional districts (option 1) – map and stat pack
• Congressional districts (option 2) – map and stat pack
• NC Senate districts – map and stat pack
• NC House of Representatives districts – map and stat pack

Because partisan politics is now a key component of North Carolina’s redistricting process, 501(c)(3) nonprofits – which cannot support or opposed political parties or candidates for office – were essentially left out of the redistricting process. Partisan gerrymandering ultimately diminishes the impact that 501(c)(3) nonprofits can have on policymaking because it creates incentives for most elected officials to be more responsive to their partisan political donors (which, by law, cannot be 501(c)(3) nonprofits) than to their constituents (including nonprofits providing services in their communities).

Center Offers Analysis of Directed Grants to Nonprofits in State Budget

This year’s state budget includes earmarked appropriations or “directed grants” of more than $1.5 billion to 644 nonprofits. While this investment in nonprofits is generally good news for the organizations receiving these earmarks, it also represents $1.5 billion in state funds that were unavailable to support other state investments that are important to the work of many nonprofits. In past years, many nonprofits were unaware that they had received appropriations in the state budget. To help you identify whether your nonprofit received a directed grant, the Center has prepared an updated list of nonprofits receiving new funding in the state budget. Let us know if you see mistakes or omissions in our list; we will continue to update it.

The process and timing for when these nonprofits will receive this funding depends on the details of how the General Assembly directed the grant in the budget. For example, many nonprofits will receive directed grants through the NC Office of State Budget and Management (OSBM), some will receive them through a variety of state agencies, and others will receive them as pass-through grants to counties or cities. The budget requires state agencies to “begin disbursement of funds to a non-State entity that meets all applicable requirements as soon as practicable, but no later than 100 days after this act becomes law.” Translation: Nonprofits receiving directed grants through OSMB or other state agencies should begin receiving funding from the state by mid-January. For nonprofits with directed grants of $100,000 or less, state agencies can provide funding through a single payment. For organizations with directed grants of more than $100,000, agencies can provide funding through quarterly or monthly payments. State agencies need to make their full payments to nonprofits receiving directed grants by July 3, 2024 (nine months after the effective date of the budget). Nonprofits that received funding as pass-through grants to counties or cities could have to wait a little longer to receive their payments, since this will depend on the local governments’ internal processes.

Any nonprofit that received a directed grant in the budget from OSBM or another state agency will need to comply with the state laws on grant reporting and accountability. Among other things:

1. A nonprofit receiving a state grant or appropriation must provide certification to its granting agency that its state funds were used for the purposes for which they were awarded (which is general operating support for most earmarks) and must provide an accounting of all state funds it receives; and
2. A nonprofit receiving a state grant or appropriation must provide its granting agency with a copy of its conflict of interest policy and must certify to the granting agency that it does not have overdue federal, state, or local tax debts.

For more on the state budget, check out the Center’s analysis of the nonprofit appropriations and provisions in the final version of the budget.

Third Quarter Lobbying Reports Due Today

Nonprofits that are registered as lobbyist principals (and their staff or contractors who were registered as lobbyists) must file their third quarterly reports of 2023 with the Secretary of State Lobbying Compliance Division by today (October 20). All reports must be filed electronically. To help you understand the basics of state lobbying laws affecting nonprofits, check out the Center's recently updated summary of NC lobbying laws for nonprofits.

DHHS Publishes Materials to Help Nonprofits Provide Outreach on Medicaid Expansion

With Medicaid expansion beginning on December 1 in North Carolina, the NC Department of Health and Human Services (DHHS) has launched a new website to help with community outreach. The website includes basic information on eligibility for Medicaid coverage, details of costs and coverage, and free materials to help nonprofits provide clear and accurate information about Medicaid and Medicaid expansion to their clients and communities.

Have Questions about Nonprofits and the 2023 Election? We Have Answers!



Have you been wondering what types of election-related activities your nonprofit can and cannot do between now and Election Day? Or perhaps you are wondering when Election Day is in your city or town this year (or if you even have an election this year). You are not alone. The Center has been fielding questions about what types of election-related activities are legal and advisable for charitable nonprofits, and we have posted answers to 31 of the most common questions we are hearing. We have included information on several new state election laws that could affect your nonprofit and the people you serve, including the new requirement to show a photo ID when voting. Let us know of other questions you have about your nonprofit’s engagement in the 2023 election.

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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.

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