Nonprofit Policy Update of the North Carolina Center for Nonprofits

February 9, 2024

In this Issue...

Some state legislators were back in Raleigh this week for oversight committee meetings. Learn what state officials had to say about the looming child care crisis and Medicaid expansion…Register for the Center’s upcoming Nonprofit Policy Conversations…Read (and share) our latest tip on nonpartisan engagement in the election highlighting the importance of Early Voting, and get lots of other tips on ways your nonprofit can engage in the 2024 primary election…Get your final warning from the Center to learn about – and share your input on – the IRS’s proposed regulations on donor advised funds, which could affect DAFs, fiscal sponsorship, giving circles, and other types of nonprofit restricted funds.

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 other dates and locations as details are finalized. Registration is now open for the events in Asheville, High Point, Fayetteville, Wilmington, and Charlotte.

Legislative Oversight Committee Meeting Highlights Child Care Crisis in North Carolina


On Tuesday, the Joint Legislative Oversight Committee on Health and Huma n Services held its first meeting of the year. During the meeting, the NC Department of Health and Human Services (DHHS) provided an update on child care in North Carolina. In its report, DHHS explained that North Carolina is facing a child care “fiscal cliff” this fall because pandemic-era federal subsidies for child care are set to expire on October 1. When these federal funds go away, child care providers in North Carolina – including many nonprofit providers – stand to lose hundreds of millions of dollars per year in public support. At this week’s committee meeting, legislators did not have any concrete solutions to address the situation. 


Even with the temporary federal support for child care, average pay for child care educators in North Carolina is currently about $14 per hour, which is well below the wages in other industries. This makes it challenging for child care providers – both nonprofit providers and others – to recruit and retain the staff they need. In turn, the shortage in child care workers means that employees (or potential employees) of other nonprofits often lack access to adequate child care to enable them to work full-time jobs, further exacerbating North Carolina’s continuing nonprofit workforce shortage.

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.

2024 Election Tip of the Week: Make a Plan to Vote Early in the Primary Election


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


This week’s tip: With one-stop Early Voting opening in North Carolina next Thursday, February 15, now is a great time for nonprofits to encourage their staff, volunteers, and the people they serve to make a plan to vote early in the primary election. Early Voting is a great option for many North Carolinians for several reasons:

  1. During Early Voting, you can register to vote if you are a new voter or update your voter registration if you have changed addresses or want to switch your partisan affiliation. You can’t register or update your registration on Election Day.
  2. You have more options for dates (any day between February 15 and March 2) and location (any Early Voting site in your county) to vote during Early Voting. On Election Day, you can only vote at your designated polling place. 
  3. If something comes up and you are unable to vote when you originally plan, there are always other times you can still cast your ballot (either on another day of Early Voting or on Election Day). If you get sick or a conflict arises on Election Day, you won’t have other opportunities to vote in the election.


Friend of the Center Lisa Hazirjian has a great blog post highlighting the importance of voting early and offering a free, easy-to-use tool to help you make your own Early Voting plan


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, and get great (free) resources from You Can Vote.

Bonus 2024 Election Tip of the Week (Actually 36 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 36 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, this week, the Center hosted a webinar to highlight (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. If you missed the webinar, check out the recording.

Reminder: Proposed Rule Changes Could Affect Donor Advised Funds and Restricted Funds


In November, the U.S. Treasury Department and Internal Revenue Service issued proposed regulations to provide clarity on donor advised funds (DAFs). The proposed regulations would establish definitions of donor advised funds, donors, and donor-advisors. The proposals could impact the way that nonprofits administer their DAFs, and the broad definitions could mean that some other types of nonprofit arrangements – including fiscal sponsorships, giving circles, certain scholarships, and other types of restricted funds – could be treated as DAFs and be subject to more stringent rules.


Chapel Hill law firm Schell Bray has an excellent analysis of the proposed regulations, explaining why they could create challenges for nonprofits that sponsor DAFs. We encourage any nonprofit with a DAF to read this clear and succinct analysis. 


Nonprofits can submit public comments on the proposed rule through next Thursday, February 15. Please let us know if your nonprofit has feedback on the proposed rules. The Center is working on public comments and plans to submit them next week.

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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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