July 10, 2020
Note: The North Carolina Center for Nonprofits typically provides Nonprofit Policy Matters each week as a benefit to its nonprofit members . However, to help all North Carolina nonprofits respond to the COVID-19 crisis, we're temporarily providing this newsletter to non-member nonprofits.
In this issue...
Take 2 minutes today to sign on to national letter urging Congress to support nonprofits
U.S. House unanimously approves bill to improve UI process for self-insured nonprofits
July 15 is extended filing deadline for many nonprofit IRS returns
U.S. House bill would provide $50 billion in funding for frontline nonprofits
Take 12 minutes to let funders and state government know what your nonprofit needs
Census tip of the week: Funding available for nonprofit Get-Out-the-Count programs
Nonprofits must report emergency paid sick leave and FMLA on employees’ W-2 forms
Legislature fails to override veto of bill to limit governor’s emergency powers
Join a free webinar on working with local election officials
First and second quarter lobbying reports due July 22
Take 2 Minutes Today to Sign On to National Letter Urging Congress to Support Nonprofits
Congress is expected to pass its next piece of COVID-19 legislation this month. It is urgent that nonprofits tell the U.S. Senate and U.S. House of Representatives to include four nonprofit policy solutions in the final package:
  1. Continue Emergency Funding Programs including improvements to the Paycheck Protection Program, creation of a nonprofit jobs-expansion program, and funding for community support grants programs that enable nonprofits to serve vulnerable populations.
  2. Provide Low-Cost Loans to Mid-Size and Larger Nonprofits that have been left out of and not able to access government funding.
  3. Strengthen Charitable Giving Incentives by expanding the incentives to all taxpayers, not just itemizers, via an above-the-line or universal charitable deduction of one-third of the standard deduction.
  4. Provide Full Unemployment Benefit Reimbursement benefits paid to laid off or furloughed employees of self-insured or reimbursing nonprofit employers.

The most effective way to persuade members of North Carolina’s congressional delegation to champion these policy solutions is by using our collective voices to urge their support! Please take two minutes right now to sign on to this national letter asking Congress to include these four nonprofit priorities in the next COVID-19 legislation.

We need all the participation we can get before today’s deadline. Even if your organization was one of the 460 nonprofits that signed onto the letter to Congress that the Center circulated in April , we strongly encourage you to sign on to this new letter today . Thank you to those organizations that have already signed on – your leadership in adding your name and spreading the word is appreciated!
U.S. House Unanimously Approves Bill to Improve UI Process for Self-Insured Nonprofits
Yesterday, the U.S. House of Representatives unanimously approved the Protecting Nonprofits from Catastrophic Cash Flow Strain Act ( S. 4209), which clarifies that self-insured nonprofits do not have to pay 100% of their unemployment bill upfront and wait for repayment from the state. This fixes problematic guidance from the U.S. Department of Labor requiring nonprofits to fully reimburse states for the costs of their COVID-19 related unemployment insurance (UI) claims and then seek reimbursement of the money they just paid. The U.S. Senate unanimously approved the bill last week. Once it is signed into law, it means that reimbursing nonprofits in North Carolina will not be charged for their COVID-19 related UI claims, since the CARES Act provides funding for 50% of the cost of nonprofits’ UI claims and the state of North Carolina is not charging nonprofits for the other 50% of these costs.
July 15 Is Extended Filing Deadline for Many Nonprofit IRS Returns
Next Wednesday (July 15) is the extended filing deadline for IRS Form 990, Form 990-T, and other nonprofit tax returns or information returns that were originally due on May 15, 2020. Tax-exempt organizations that need additional time to file beyond the July 15 deadline can request an automatic extension by filing Form 8868 with the IRS. An organization will be allowed a six-month extension beyond the original due date.
U.S. House Bill Would Provide $50 Billion in Funding for Frontline Nonprofits
On Monday, several U.S. House members introduced the Work Opportunities and Resources to Keep Nonprofit Organizations Well Act (WORK NOW Act)( H.R. 7495). The bill seeks to inject $50 billion into frontline nonprofits over the next six months to generate employment for laid off workers and to address the skyrocketing needs in communities for COVID-19 relief and recovery. The grants program would help nonprofit organizations whose workers serve public needs that are growing due to the current crisis retain their employees, scale their service delivery, and hire more workers to meet these essential needs. An identical bill ( S.3747) was introduced in the U.S. Senate in May. If the WORK NOW Act receives enough support from House and Senate members, a version of it could be part of future COVID-19 recovery legislation.
Take 12 Minutes to Let Funders and State Government Know What Your Nonprofit Needs
In late May, the Center and our state government partners launched a new survey on the impact of COVID-19 on North Carolina nonprofits. More than 1,600 nonprofits have already completed the survey, and we are hoping to have thousands more organizations reply in the coming weeks. Please take 12 minutes to complete the survey , which asks about your organization's operations and needs during the COVID-19 crisis and in the coming months. Your response will inform government, philanthropy, and others about what COVID-19 related needs are most pressing in North Carolina. To maximize the benefits and value of this survey, responses will be publicly available in the near future.
The survey (available in English and Spanish) is a joint effort of the Center, the Office of the NC Secretary of State, and the Strategic Partnerships office at the NC Office of State Budget and Management. The Center encourages nonprofits to complete the survey even if you responded to our original COVID-19 survey in March. Thank you if your organization has already completed the survey!
Census Tip of the Week: Funding Available for Nonprofit Get-Out-the-Count Programs
A complete and accurate count in the 2020 U.S. Census is important for nonprofits since it will help ensure that North Carolina has full representation in Congress and access to federal funding that supports the work of many nonprofits . Because nonprofits are trusted messengers that often serve hard-to-count communities, it is important for all nonprofit organizations to spread the word about the importance of completing the 2020 Census. Nonprofit’s engagement in Census outreach is particularly critical since North Carolina continues to lag behind other states in our Census response rate. As of Wednesday, North Carolina’s response rate was 58.2%, well below the national average of 62.0% (see the U.S. Census Bureau’s map of response rates for more details).
Census Tip of the Week
The NC Counts Coalition invites North Carolina nonprofits committed to ensuring a fair and accurate Census to apply for grants in the range of $7,000-$20,000. NC Counts will consider collaborative proposals for larger amounts. Funds will support plans in North Carolina communities at risk of being undercounted, also known as hard-to-count (HTC) communities. Proposals are due on July 24, and NC Counts has recorded an informational webinar with more details for prospective applicants. The grant application is available online.

Because of the COVID-19 pandemic, the 2020 Census enumeration has been extended through October 31. Census Bureau canvassers will begin visiting households that have not responded to the Census on August 11.
Nonprofits Must Report Emergency Paid Sick Leave and FMLA on Employees’ W-2 Forms
On Wednesday, the U.S. Treasury Department and Internal Revenue Service provided guidance to employers requiring them to report on Form W-2 the amount of qualified sick and family leave wages paid to employees under the Families First Coronavirus Response Act. The IRS has provided additional information on tax credits for nonprofits and businesses that offer emergency paid sick leave and emergency family and medical leave to their employees.
Legislature Fails to Override Veto of Bill to Limit Governor’s Emergency Powers
On Wednesday, the NC Senate voted to sustain Governor Cooper’s veto of a bill ( S.105) that would have required him to receive consent of the 10-member Council of State before issuing many types of executive orders during a state of emergency like the COVID-19 pandemic. The Center and other nonprofits have been working with the Governor’s Office for months on a variety of potential executive orders that could help nonprofits and the communities they serve respond to the pandemic. This legislation would have made it harder for Governor Cooper to take action by executive order. After yesterday’s Senate vote, Governor Cooper is still not required to get consent of the Council of State before issuing executive orders.
Join a Free Webinar on Working with Local Election Officials
With COVID-19 creating unprecedented challenges for voter registration and voting this year, accessing the expertise of America’s local election officials has never been more important for nonprofits trying to encourage people in their communities to get-out-the-vote. Nonprofit VOTE is offering a free webinar on July 16 at 3 p.m. as a primer on how to work with local election officials for a successful voter registration event on National Voter Registration Day (September 22) and beyond. Your nonprofit also can sign up to become a National Voter Registration Day partner and receive a free voter registration kit and access to other opportunities to support your nonpartisan voter registration work.
First and Second Quarter Lobbying Reports Due July 22
The NC Secretary of State announced yesterday that first quarter lobbying expense reports, which would normally be due on April 22, may be submitted through July 22 without penalty. 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.
Nonprofit Policy Matters is a service for current Members of the North Carolina Center for Nonprofits. We track state and federal policy issues that affect all 501(c)(3) nonprofits. Learn about the Center's public policy priorities . For more information, contact David Heinen , Vice President for Public Policy and Advocacy.

Your Center membership allows each staff member, board member, and key volunteer in your organization to set up their own online account to access member resources, benefits and services. Encourage everyone to create an account .