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In this Issue...
The U.S. House of Representatives actually did something this week! Learn how the bipartisan tax legislation moving through Congress could help people served by nonprofits, and how it could be improved to help generate more donations to nonprofits…Get details about the Center’s upcoming Nonprofit Policy Conversations and next week’s free webinar on nonprofits and the 2024 primary election…Read (and share) our latest tips on nonpartisan engagement in the election and the many free, user-friendly resources from You Can Vote…If your nonprofit sponsors donor advised funds, check out clear and concise analysis of the IRS’s proposed regulations on donor advised funds to find out how the new rules could affect your DAFs (especially if you didn’t read it last week).
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Save the Date(s): Nonprofit Policy Conversations
This spring, the Center will host 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 the state's legislative priorities, nonprofit sector trends, and potential public policy solutions and challenges for nonprofits in 2024 and beyond. So far, Nonprofit Policy Conversations are scheduled for:
- Thursday, March 14 in Asheville in partnership with WNC Nonprofit Pathways (location and time TBD);
- 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 in Wilmington in partnership with QENO; and
- 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 more dates and locations once details are finalized. Registration opens soon.
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U.S. House Approves Tax Plan to Expand Child Tax Credit
On Wednesday, the U.S. House of Representatives approved the Tax Relief for American Families and Workers Act of 2024 (H.R. 7024) in a 357-70 vote. Thirteen of the 14 U.S. Representatives from North Carolina (everyone except Congressman Dan Bishop) voted for the legislation. The bill would:
- Restore three expired business tax deductions related to research and development spending, purchases of assets that lose value over time, and interest expenses;
- Reinstate parts of the expanded child tax credit that expired in 2022. Congress could include tax changes as part of appropriations legislation or pass them as a separate bill; and
- End new applications for the Employee Retention Tax Credit (ERTC) after January 31, 2024.
The expansion of the child tax credit could particularly benefit people served by nonprofits. The proposal would reinstate parts of the 2021 expansion of the child tax credit by making a larger portion of the credit refundable in 2023, 2024, and 2025. This would provide significant financial assistance to many low-income families who don’t normally pay income taxes. The expanded child tax credit helped lift many North Carolina families with children out of poverty in 2021, but child poverty levels rose sharply in 2022 and 2023 after the expanded child tax credit ended.
Because the rules of the House did not allow for amendments to the bill, the version of the bill approved by the House this week does not include any new or improved tax incentives for charitable giving. With donations to nonprofits declining last year, the Center and other nonprofits continue to advocate for the Senate to add a universal charitable deduction to the tax package to encourage people to give more generously to support the work of charitable nonprofits.
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Join a Free Webinar on Nonprofits and the 2024 Election on February 7
The 2024 election is officially underway in North Carolina, as county boards of elections have
begun sending out absentee ballots to eligible voters who have requested them. In-person voting for the 2024 election begins in less than a month, with Early Voting for the primary election opening on Thursday, February 15. While 501(c)(3) nonprofits cannot support or oppose candidates for office or make campaign contributions, your nonprofit can (and should) engage in nonpartisan voter registration and voter education work. The Center is offering a free webinar on Wednesday, February 7 from 10:00-11:30 a.m. to help answer your questions about the ways nonprofits can safely, legally, and effectively engage in the 2024 election.
During the webinar, you'll learn the basics about what 501(c)(3) nonprofits can and can’t do in an election year, ways nonprofit staff, board members, and volunteers can (legally) engage in campaigns, and common questions (and possibly some answers!) about tricky election-year situations for nonprofits. You'll find out about new election laws and changes to the election process in North Carolina in 2024 that might affect nonprofits and the people they serve. And we will offer tips on ways 501(c)(3) nonprofits can protect their reputations and avoid legal trouble when partnering with other organizations in an election year. Register today!
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2024 Election Tip of the Week: Get Free (and Really Helpful) Resources from You Can Vote
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: You Can Vote offers many free, user-friendly, and nonpartisan resources on voter education, including:
- Free handouts in English and Spanish with basics about the election, voting rights, and voter education information. Two of our favorites are Who’s on the Ballot?, which provides helpful explanations of 20 elected offices that you are likely to see on your ballot this year, and What’s on the Ballot?, which highlights the elected officials who are responsible for eight major policy issues that are important to the work of many nonprofits.
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Communications toolkits to help your nonprofits share clear and accurate information about the 2024 election with your staff, volunteers, and the people you serve. You need to sign up to access these toolkits, but it’s worth the two minutes to get ready-made emails and social media posts, along with notes on what days to share which messages.
- Free voting educators for nonprofits’ virtual or in-person events. Note that your organization will need to request a voting educator at least two weeks in advance.
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Many more resources to help your nonprofit become a (nonpartisan) Voting Rights Champion in 2024.
Note: If you missed the first two 2024 Election Tips of the Week or want a refresher, (re)read them now: checking your voter registration and requesting an absentee ballot.
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Bonus 2024 Election Tip of the Week (Actually 33 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 33 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.
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Proposed Rule Changes Could Affect Donor Advised 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 would create better clarity about the legal structure of DAFs and could impact the way that nonprofits administer their DAFs. 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.
The IRS recently extended the deadline for public comments on the proposed rule through February 15. Please let us know if your nonprofit has feedback on the proposed rules. The Center is planning to submit public comments.
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Reminder: DHHS Offers Resources to Help Nonprofits Provide Outreach on Medicaid Expansion
Medicaid expansion began in North Carolina in December. According to the Medicaid expansion dashboard from the NC Department of Health and Human Services (DHHS), more than 314,000 North Carolinians enrolled in health care through Medicaid expansion in the first two months it was available. DHHS estimates that more than 300,000 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.
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