Nonprofit Policy Update of the North Carolina Center for Nonprofits

March 1, 2024

In this Issue...

Next Tuesday (March 5) is primary Election Day in North Carolina, so the Center is sharing the final (for now) of our weekly tips on nonpartisan engagement in the election. Alert readers will note that it is actually a repeat of the first one we published in early January, but it’s particularly relevant leading up to Election Day… Read details about Congress yet again narrowly avoiding a partial government shutdown and why another potential shutdown is looming in three weeks… Learn why you’ll want to double-check your nonprofit’s Form 990 on GuideStar or ProPublica… And find out what nonprofit issues might be on state legislators’ priority list when the 2024 short session starts next month.

Congress Poised to Pass Another Short-Term Continuing Resolution


Yesterday, both the U.S. House of Representatives and U.S. Senate approved a continuing resolution to provide temporary funding for parts of the federal government through next Friday, March 8 and for the remainder of the federal government through March 22. The House approved the bill in a 320-99 vote, with 11 of the 14 House members from North Carolina voting in favor of the temporary funding measure, and Congressmen Dan Bishop (R-NC), Chuck Edwards (R-NC), and Richard Hudson (R-NC) missing the vote. The Senate passed the bill by a 77-13 margin, with Senator Thom Tillis (R-NC) voting for the bill and Senator Ted Budd (R-NC) voting against it. Without this short-term funding bill, parts of the federal government would have shut down tomorrow. 


The latest continuing resolution provides one week of temporary funding for the federal departments of Agriculture, Justice, Commerce, Energy, Interior, Transportation and Housing, and Urban Development. Next week, Congress is expected to vote on the six appropriations bills needed to fund these departments for the remainder of the fiscal year (through September 30). Appropriations bills for other federal agencies – such as the departments of Labor, Health and Human Services, Defense, and Homeland Security – include a wide variety of politically-contentious programs and policies, which could make it challenging for Congress to reach agreements on the details of these bills by the March 22 deadline. Translation: Another partial government shutdown could be looming in three weeks, and this one would threaten continued funding for many federal programs that provide grants and contracts for nonprofits.

2024 Election Tip of the Week: Check Your Voter Registration Before Election Day


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 is a repeat of our first one: If you plan to vote on Election Day (next Tuesday, March 5), check your voter registration now so you are prepared to vote.


The voter search page at the NC State Board of Elections is a must-click resource for every North Carolinian planning to vote in 2024. Enter your name, click “search”, and select the option for the one that looks like you based on full name, county, and ZIP code. Once there, check out the following information:

  1. Your address. If you no longer live at the address where you are currently registered to vote, you’ll need to update your address to be eligible to vote in North Carolina if you plan to vote on Election Day. If you have moved within the same county, you can also update your registration with your new address during Early Voting today or tomorrow.
  2. Your political affiliation. Most North Carolinians are registered as either “Unaffiliated” (36.68% of NC voters), Democrat (32.52% of NC voters), or Republican (30.01% of NC voters). If you are registered with a party (which also can include the Libertarian, Green, Constitution, and No Labels parties in addition to the two major parties), you can only receive that party’s ballot in the primary election. However, if you are registered as Unaffiliated, 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 to you the most. 
  3. Your polling place. If you plan to vote on Election Day, then you need to vote at the specified polling place for your precinct. 
  4. Your sample ballots. North Carolina features long ballots in the 2024 election. To see your options for candidates for President, U.S. House of Representatives, NC Governor (plus nine Council of State positions), NC Senate, NC House of Representatives, judicial elections, and more, take a few minutes to review your sample ballot. And if you are registered as Unaffiliated, you can compare the sample ballots for the various parties to decide which one makes the most sense for you to use during the primary election. 


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

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.

2024 Short Session Could Include Legislation on Nonprofit Issues


The NC General Assembly will begin its 2024 short session on Wednesday, April 24. Legislators’ main priority for the short session will be to make adjustments to the state budget for FY2024-25. If the state has a revenue surplus, the budget could potentially include new or increased state funding for some nonprofits. 


During the short session, legislators also can take action on a variety of other bills that passed either the House or Senate in 2023 or that affect state taxes or spending. Among the bills eligible for consideration during the short session are legislation to exempt nonprofits from paying sales tax on their purchases and to modernize the NC Nonprofit Corporation Act. In a NC Health News story this week, two influential legislators suggested that they are considering changes to laws related to hospitals’ property tax exemption and sales tax refunds. Legislation affecting nonprofit hospitals could ultimately have implications for all 501(c)(3) nonprofits. And legislators could revisit other legislation affecting nonprofits this spring, such as a 2022 bill (that was ultimately vetoed) that would have created a controversial donor privacy law in North Carolina.


The Center will continue to advocate on nonprofits’ behalf on these and other issues, and we will keep you posted with any developments and/or opportunities for your nonprofit to take action.

Register 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.

Heads Up: Dates of Posted Form 990s May Be Inaccurate


The National Council of Nonprofits has reported that Form 990 information showing up on public-disclosure sites (e.g., GuideStar and ProPublica) may be incorrect due to a technical glitch from the Internal Revenue Service. The IRS is aware of the problem and reportedly will be taking corrective action in the coming weeks. The source of the issue appears to be an error that has 2022 data being superimposed onto 2021 forms. In an abundance of caution, nonprofits with outstanding or upcoming fundraising requests/proposals should consider sending their recently filed Form 990s directly to any funders or other entities requesting them.

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


In January, 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.

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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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