Congress Faces Another Federal Spending Deadline Next Week

Last month, Congress approved a short-term continuing resolution to fund the federal government through early March. The latest continuing resolution provides temporary funding for the federal departments of Veterans Affairs, Agriculture, Transportation, Housing and Urban Development, as well as energy and water programs through Friday, March 1 and for all other federal agencies through Friday, March 8. With the U.S. House of Representatives on recess this week, Congress will only have a couple of days next week to negotiate and pass some of the 12 appropriations bills necessary to fund the federal government for the remainder of the fiscal year or to pass another short-term continuing resolution. Otherwise, parts of the federal government should shut down at the end of next week.

Registration Open for Nonprofit Policy Conversations

This spring, the Center is hosting a series of Nonprofit Policy Conversations around the state to bring together nonprofit leaders and local elected officials 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 nonprofit sector trends and potential public policy solutions and challenges for nonprofits in 2024 and beyond. To date, Nonprofit Policy Conversations are scheduled for:

• Thursday, March 14 from 1:00-3:00 p.m. at the Holiday Inn Biltmore West in Asheville in partnership with WNC Nonprofit Pathways
• Friday, March 22 from 9:30-11:30 a.m. at the Factory at Congdon Yards in High Point in partnership with Guilford Nonprofit Consortium, HandsOn NWNC, and Business High Point
• Monday, April 15 from 10:00 a.m.-12:00 noon at Cumberland Community Foundation in Fayetteville in partnership with Cumberland Community Foundation
• Friday, April 19 from 1:00-3:00 p.m. at Truist Hall at UNCW in Wilmington in partnership with QENO
• Monday, May 20 from 10:00 a.m.-12:00 noon at Foundation For The Carolinas in Charlotte in partnership with Foundation For The Carolinas

We will announce additional dates and locations as details are finalized. Registration is open for the events in Asheville, High Point, Fayetteville, Wilmington, and Charlotte.

2024 Election Tip of the Week: Don’t Forget to Bring Your Photo ID to Vote

Leading up to the 2024 primary election this winter and the general election this fall, the Center will offer a variety of tips for nonprofits about nonpartisan voter registration and voter education. Share these tips with your staff, board, and the people you serve.

This week’s tip: Don’t forget to bring your photo ID with you when you vote this year. 

A 2018 law created a photo ID requirement for voting in North Carolina, but it has been tied up in court proceedings, so it has not been enforced for several years. In April 2023, the NC Supreme Court issued a decision reinstating the photo ID law. For many North Carolinians, the 2024 primary election will be the first time in a few election cycles that they will be asked to show a photo ID to vote. 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.

The NC State Board of Elections (NCSBE) has posted clear guidance on the new photo ID requirements. Some highlights include:

1. A reminder that: “All voters will be allowed to vote with or without a photo ID. If a voter cannot show photo ID when voting in person, they can still vote by filling out an ID Exception Form. If absentee-by-mail voters are unable to include a copy of their photo ID with their ballot return envelope, they can also fill out an ID Exception Form with their ballot.”
2. Details on the process of showing a photo ID for in-person voters and absentee-by-mail voters.
3. An information sheet on acceptable forms of photo ID for the 2024 primary election.
4. Information about getting a free photo ID from your county board of elections.
5. Helpful answers to questions about photo ID requirements in a five-minute video, FAQs, and 10 facts about photo IDs for voting.

You Can Vote also has some helpful “pro-tips” on the most effective ways for nonprofits to communicate with people about the photo ID requirements.

Note: If you missed the previous 2024 Election Tips of the Week or want a refresher, (re)read them now: check your voter registration, request an absentee ballot, get great (free) resources from You Can Vote, make a plan to vote early, and advantages of being an unaffiliated voter.

(Corrected) 2024 Election Tip of the Week: Should You Be a U?

Last week’s election tip contained a couple of factual errors, so we are reprinting a corrected version this week.

When North Carolinians register to vote, they have the option of choosing to be affiliated with one of five recognized political parties (Democratic, Green, Libertarian, No Labels, or Republican) or being an unaffiliated voter. Your partisan affiliation affects which ballot you receive in the primary election. If you are registered with a partisan affiliation, you can only receive that party’s ballot in the primary election – and you probably won’t get to vote in the primary at all if you are registered with the Green or No Labels parties, since these parties don’t have contested primaries. However, if you are registered as an unaffiliated voter, you can choose any party’s ballot in the primary election, so you have the opportunity to be strategic about choosing the ballot with the most options in the races that matter most to you.

In some counties, only one party has competitive primary elections – and the primary election is often the de facto election in places without competitive general elections – so it may be advantageous for some voters to be registered as unaffiliated so they have a chance to vote in an election with a meaningful choice of candidates. Note that you can only receive one ballot during the primary election, so if you are registered as unaffiliated you have to choose which party’s ballot you would like to receive.

Being unaffiliated isn’t for everyone. If you are considering running for office (other than nonpartisan offices like municipal officials and school board members in certain parts of the state) or having a leadership role in a political party, you will need to be affiliated with the appropriate party.

You can't change your partisan affiliation during Early Voting, so if you are currently registered with a partisan affiliation, it is too late to switch for this year's primary election. However, if this election-year tip convinced you to change your registration to “unaffiliated" for future elections, you may want to consider making the change in the near future.

Bonus 2024 Election Tip of the Week (Actually 35 of Them!)

Have you been wondering what types of election-related activities your nonprofit can and cannot do between now and the primary election? Or perhaps you are already thinking ahead to this fall’s general election. 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 35 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 2024 election.

Also available is the recording of the Center's recent webinar highlighting (almost) everything your nonprofit needs to know about the 2024 primary election. We covered the basics about what 501(c)(3) nonprofits can and can’t do in an election year; ways nonprofit staff, board, and volunteers can (legally) engage in campaigns; common questions about tricky election-year situations for nonprofits; new election laws and changes to the election process in North Carolina that might affect nonprofits and the people they serve; and ways 501(c)(3) nonprofits can protect their reputations and avoid legal trouble when partnering with other organizations in an election year. Watch the recording.

Reminder: New DOL Worker Classification Rule Takes Effect on March 11

Last month, the U.S. Department of Labor (DOL) announced a new final rule for determining whether workers are employees or independent contractors under the Fair Labor Standards Act (FLSA). Under FLSA, nonprofits and other employers are required to pay a minimum wage and offer overtime pay for certain workers who are classified as employees. Independent contractors aren’t entitled to these or other benefits of employees.

The new rule, which takes effect on March 11, replaces a rule from early 2021 that made it easier for employers to classify workers as independent contractors. The 2021 rule focuses on two criteria – opportunity for profit or loss and control over work – in determining whether workers are employees or independent contractors. The new rule returns to a more traditional six-factor “economic realities” test that would consider:

1. Opportunity for profit or loss depending on managerial skill;
2. Investments by the worker and the employer;
3. Degree of permanence of the work relationship;
4. Nature and degree of control by the employer;
5. Extent to which the work performed is an integral part of the employer’s business; and
6. The worker’s skill and initiative.

The new rule means that more nonprofit workers will soon need to be classified as employees rather than independent contractors and receive employee benefits. 

Separately, DOL is still in the process of developing a final rule on the salary threshold for overtime pay under FLSA. The Center submitted comments on that proposed rule in November noting that it will likely have a disproportionate impact on North Carolina nonprofits. The Center also prepared an analysis of the proposed regulations and their potential impact on nonprofit organizations, concluding with 15 compliance options and eight next steps for nonprofits to consider while we wait for a final rule from DOL later this year.

Reminder: DHHS Offers Resources to Help Nonprofits Provide Outreach on Medicaid Expansion

Medicaid expansion began in North Carolina in December. According to the NC Department of Health and Human Services (DHHS), nearly 349,000 North Carolinians have enrolled in health care through Medicaid expansion in the first two months it's been available, with about 1,000 more people enrolling every day. DHHS estimates that more than 250,000 additional North Carolinians may be eligible for coverage. Almost all potential Medicaid expansion enrollees receive services from nonprofits, so it is important for nonprofit organizations to spread the word about Medicaid expansion eligibility and the application process. 

The DHHS 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. Please share this information widely, especially with clients who may now be eligible to apply.

Most (But Not All) Nonprofits Are Exempt from Corporate Transparency Act Reporting

The Corporate Transparency Act, a new federal law requiring business corporations to file annual reports with the Financial Crimes Enforcement Network (FinCEN), took effect on January 1, 2024. Generally, 501(c)(3) nonprofits are exempt from filing reports with FinCEN as long as they have current exemption letters from the IRS. However, FinCEN’s rules do not extend that exemption to nonprofit corporations whose tax-exemption determination has been revoked or is pending with the IRS. Specifically:

1. Nonprofits that have their 501(c)(3) status revoked by the IRS, including those that fail to file some version of Form 990 for three consecutive years, will need to file a report with FinCEN within 180 days after their tax-exempt status is revoked.
2. Nonprofits that have submitted Form 1023 or Form 1023-EZ with the IRS in 2023 or earlier will not need to file reports with FinCEN as long as they receive determination letters from the IRS by the end of 2024. 
3. Nonprofits that are incorporated in 2024 or later will need to file reports with FinCEN if they do not receive IRS determination letters within 90 days after the date of their incorporate with the NC Secretary of State (or the equivalent agency in other states).

The National Council of Nonprofits has a helpful summary of the ways that tax-exempt nonprofits may be affected by the Corporate Transparency Act.

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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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