July 30, 2021
In this issue...
Take 1 minute today to join a national letter in support of federal policy solutions for nonprofits
Center offers tips as nonprofits consider COVID-19 vaccination requirements for employees
SBA will open simplified portal for PPP loan forgiveness next week
New report on donations to nonprofits highlights need for tax incentives for charitable giving
IRS clarifies that nonprofits can receive tax credits for paid leave to workers accompanying family members getting vaccinated
Center offers status update on 11 state legislative proposals affecting nonprofits
Take 1 Minute Today to Join a National Letter in Support of Federal Policy Solutions for Nonprofits
Last week, a coalition of 55 national nonprofit organizations sent a letter to the White House and to congressional leaders identifying challenges charitable organizations continue to face and seeking support for urgently needed policy objectives that will enable nonprofits to contribute to the nation’s relief, recovery, and rebuilding.

Now, this coalition needs our help to demonstrate widespread support for these recommendations. Please join the Center and more than 50 other North Carolina organizations and add your nonprofit’s name to this letter today.
 
The letter asks President Biden and Congress to support nonprofit jobs by:
  • Enacting the WORK NOW Act, federal legislation that would provide $50 billion to help nonprofits have adequate staff resources;
  • Improving the employee retention tax credit so more nonprofits can access it; and
  • Having the Bureau of Labor Statistics provide better and more frequent information on trends in nonprofit employment.

The letter asks President Biden and Congress to provide resources for nonprofits by:
  • Extending and expanding the temporary universal charitable deduction that ends after 2021;
  • Providing additional emergency grants for nonprofits serving communities;
  • Preserving state and local government funding from the American Rescue Plan Act; and
  • Providing $100 billion in federal support for affordable broadband access for all communities.
 
When the Center shares this letter with North Carolina’s congressional delegation, we want to ensure they see your nonprofit’s name alongside those of other charitable organizations in your community and across the state who are asking the federal government to do more to support the nonprofit sector. If you haven’t already done so, please sign on today! And thank you if your organization has already signed on to the letter.
Center Offers Tips as Nonprofits Consider COVID-19 Vaccination Requirements for Employees
With North Carolina’s COVID-19 vaccination rates stagnating and positive cases surging due to the Delta variant, many nonprofits are beginning to ask whether they can or should mandate COVID-19 vaccinations for their staff.

To answer the first question: It is legal for nonprofits to require their employees to be vaccinated. The NC General Assembly never took up a pair of bills (H.B. 558 and H.B. 876) that would have prohibited private employers from mandating COVID-19 vaccines for their workers. Further, the U.S. Department of Justice recently issued an opinion clarifying that federal law doesn’t stop private employers from requiring their staff to have vaccines that are only authorized under emergency use, as is the case for the Pfizer, Moderna, and Johnson & Johnson vaccines for COVID-19. Over the past two weeks, several large nonprofit health systems in North Carolina have instituted vaccination requirements for their staffs, and yesterday, Governor Roy Cooper issued Executive Order No. 224, which, among other things, strongly encourages nonprofits to require unvaccinated employees to wear masks and to be tested weekly for COVID-19.

To help with the second question, the Center has posted an analysis of the pros and cons of nonprofit vaccination mandates (spoiler alert: the pros probably outweigh the cons for most nonprofits). We have also included some tips for ways your organization can implement an employee vaccination requirement in a way that is fair and effective and that minimizes potential liability for your nonprofit. 
SBA Will Open Simplified Portal for PPP Loan Forgiveness Next Week
On Wednesday, the U.S. Small Business Administration (SBA) announced that it will be launching a streamlined application portal to allow borrowers with Paycheck Protection Program (PPP) loans of $150,000 or less secured through participating lenders to apply for forgiveness directly through the SBA. The portal is intended to simplify forgiveness for about 90% of loans by, among other things, skipping the step in Second Draw PPP loans of proving that revenues declined in a quarter by 25%. The portal will start accepting applications on August 4. The SBA issued an Interim Final Rule on Wednesday to implement the new procedures.
New Report on Donations to Nonprofits Highlights Need for Tax Incentives for Charitable Giving
On Tuesday, researchers at Indiana University released a new report finding that just 49.6% of U.S. households made charitable contributions in 2018. This was the first time in nearly two decades that fewer than half of American families contributed to nonprofits and is a significant drop from 2000, when 66.2% of American households gave charitable donations. Notably, the study shows that many households stopped giving to nonprofits in 2018, the first year when federal tax law changes meant that many Americans no longer received tax deductions for their charitable contributions. To try to reverse this trend and encourage all North Carolinians to give generously to support the work of nonprofits in their communities, the Center continues to advocate for Congress and the N.C. General Assembly to enact new tax deductions or tax credits for charitable contributions by taxpayers who don’t use itemized deductions.
IRS Clarifies that Nonprofits Can Receive Tax Credits for Paid Leave to Workers Accompanying Family Members Getting Vaccinated
Yesterday, the Internal Revenue Service issued updated frequently asked questions (FAQs) on the paid sick and family leave tax credits under the American Rescue Plan Act. The updates make clear that nonprofits and other employers can claim the refundable payroll tax credits for providing leave to employees so they can accompany a family or household member to obtain COVID-19 vaccination or to care for a family or household member recovering from their vaccination. The FAQs provide information on how eligible employers can claim the paid sick and family leave credits — including how to file for and compute the applicable credit amounts, and how to receive advance payments for, and refunds of, the credits.
Center Offers Status Update on 11 State Legislative Proposals Affecting Nonprofits
Over the past six months, these weekly policy updates have mentioned a variety of state bills that could affect the operations of nonprofits. We know that many nonprofits are interested in some or all of these bills, so the Center has posted an update on the status of legislation affecting nonprofits. If you have questions about the status of these or other bills – or about advocacy strategies on legislation that your nonprofit supports or opposes – feel free to reach out to us for additional information or assistance.
The Center provides Nonprofit Policy Update each week as a benefit to its nonprofit members. However, to help all North Carolina nonprofits respond to the COVID-19 pandemic, we're temporarily providing this newsletter to non-member nonprofits. Don’t miss out – become a member to ensure you continue receiving these updates along with many other valuable benefits.
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Nonprofit Policy Update is a weekly newsletter 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.