March 11, 2022
In this issue...
Register today to learn more about nonprofit policy solutions and the 2022 election 
NC General Assembly ends its 2021 long session
Coming soon: Two ways for nonprofits to engage with candidates in 2022
Congress approves omnibus spending bill
State legislators approve budget technical corrections bill
Families need to file with IRS to receive half of 2021 child tax credit
Complete the 2022 NC Nonprofit Compensation Survey
Register Today to Learn More about Nonprofit Policy Solutions and the 2022 Election
The Center is offering a series of virtual nonprofit policy briefings this spring. The first policy briefing, which will be held on March 24, will provide information on trends in the nonprofit sector and key federal and state policy issues affecting nonprofits in 2022.

On April 1 (and we promise it’s not an April Fools’ joke), the Center is offering an overview of the 2022 election for nonprofits, including:
  • A quick overview of what’s at stake in the 2022 election and why it matters to nonprofits.
  • Answers to common nonprofit questions about election-related activities that nonprofits – and their staff and board members – can and can’t do.
  • How to find and share basic information about the 2022 election.
  • How to learn more about candidates’ positions on issues that are important to your nonprofit’s work.
  • Five nonpartisan ways your nonprofit can help your staff, board, volunteers, and clients be well-informed voters this year.

Registration is open for both policy briefings, along with virtual regional gatherings for nonprofits in western North Carolina, the Triad, and the Charlotte area. Later this spring, the Center will also offer topical policy briefings on the state budget, access to healthcare, and potential solutions to the nonprofit workforce shortage.
NC General Assembly Ends Its 2021 Long Session
Yesterday, the NC House of Representatives approved an adjournment resolution (S.J.R. 748), officially ending the state legislature’s 2021 “long” session. The NC Senate had approved the adjournment resolution on Wednesday. Legislators will return to Raleigh on Wednesday, May 18 to start their 2022 “short” session, which is expected to continue into early summer. During the short session, legislators may make adjustments to the state budget for FY2022-23 and could vote on a variety of bills that were introduced during the 2021 long session. The Center’s top priorities during the short session will be:
  1. To advocate for legislators to make changes to a new state law that requires local government elected officials who serve on nonprofit boards to recuse themselves from decisions to provide government funding to those organizations. The Center has heard from dozens of nonprofits that this new law is causing some of their board members to resign, creating governance challenges for their organizations. 
  2. To push for legislators to approve of Center-recommended bills that would modernize the state’s nonprofit corporation statute and the charitable solicitation law. Many of the proposals in these bills are based on input from Center members.
  3. To prevent – or minimize the harm of – any proposed legislation that would be harmful for North Carolina’s charitable nonprofits.
Coming Soon: Two Ways for Nonprofits to Engage with Candidates in 2022
With the May 17 primary election just over two months away, election season is now underway in North Carolina. This spring is a great time for nonprofits to engage with candidates for office. Nonprofit VOTE has a one-page information sheet with tips on five legal and nonpartisan ways that 501(c)(3) nonprofits can engage with candidates. The Center is developing two opportunities for nonprofits to interact with candidates for office this year:
  1. Developing a statewide candidate questionnaire on nonprofit issues to help nonprofit leaders learn more about the candidates on their ballots in the May 17 primary election and the November 8 general election – and to help candidates have a better awareness of the work of nonprofits. Next week, we plan to send the questionnaire to every candidate – from every political party – for our U.S. Senate seat, North Carolina’s 14 congressional districts, 50 NC Senate districts, and 120 NC House of Representatives districts. Look for more details soon, including ways that you can help get candidates in your area to participate.
  2. Possibly collaborating with local nonprofits in a mid-sized city in North Carolina (we’re still exploring options of which one) on a nonpartisan nonprofit candidate forum. Nonprofit VOTE has developed a great guide to help nonprofits organize legal and effective candidate forums. The Center is hoping to identify several partner organizations that would reflect the diversity of the nonprofit sector to work together to organize the forum with support from the Center. Partners can help in a variety of ways, such as gathering questions to pose to candidates, providing a venue, helping with audiovisual needs for the forum, or promoting the event. Let us know if your nonprofit is interested in being a partner on a candidate forum in your community.
Congress Approves Omnibus Spending Bill
Last night, the U.S. Senate approved an omnibus spending bill (H.R. 2471) to provide about $1.5 trillion in funding for the federal government through September 30, the end of the current federal fiscal year. Among other things, the 2,741-page bill includes:
  • More than 4,000 “directed appropriations” or earmarks for special projects in the districts of key members of Congress. The Center is still investigating whether any or many of these earmarks are directed to North Carolina nonprofits.
  • About $14 billion in new funding for aid to Ukraine. 
  • No additional COVID-19 relief. Originally, the bill included about $15.6 billion for additional COVID-19 vaccines and medicine, but the House removed the provision since it would have been partially paid for by rescinding about $7 billion in unspent pandemic assistance for state and local governments. 

The U.S. House of Representatives approved the bill on Wednesday night, and President Joe Biden is expected to sign it today to prevent a partial shutdown of the federal government.

Unfortunately, the omnibus spending bill does not address much-needed nonprofit pandemic and workforce shortage relief. The Center and our national nonprofit colleagues will continue to share the national nonprofit letter seeking policy solutions to address challenges to charitable giving, the nonprofit workforce shortage, and the decline in volunteerism with our members of Congress and to seek other legislation that may provide opportunities to advance some of these policy solutions.
State Legislators Approve Budget Technical Corrections Bill
This week, the NC Senate and NC House of Representatives both passed a bill (H.B. 243) that makes a variety of technical and clarifying changes to the state budget for FY2021-23. A few provisions in the 52-page bill affect nonprofits, including:
  • Several corrections where the names of nonprofits were misidentified in the state budget or where appropriations intended for nonprofits were erroneously made to local governments. These changes were necessary to ensure that the state can make payments to nonprofits receiving appropriations in the budget.
  • A provision authorizing the NC Department of Commerce to open a second round of Business Recovery Grants. Nonprofits that pay state unrelated business income tax (UBIT) and had lost revenue during the pandemic may be eligible for these grants.
  • Provisions to change the dates of municipal primary elections from March 8 to May 17 so that they will be held concurrently with federal and state elections. Originally, all primary elections had been scheduled to take place on March 8, but the NC Supreme Court ordered elections for federal and state offices to be delayed until May 17 to allow for necessary changes to the redistricting plans.
  • A provision allowing for a state tax deduction for employers who used federal payroll taxes to claim the Employee Retention Tax Credit (ERTC) last year. This may create a new state corporate income tax deduction for a few nonprofits that used the ERTC last year and also pay state UBIT.

The bill now goes to Governor Cooper for his consideration. It passed with broad bipartisan support in both the Senate and the House, so it is likely that Governor Cooper will sign it into law.
Families Need to File with IRS to Receive Half of 2021 Child Tax Credit
Last year’s American Rescue Plan Act (ARPA) expanded and improved the child tax credit in three important ways:
  1. It increased the amount of the tax credit from $2,000 per child to $3,600 for children under the age of six and $3,000 for children ages 6-17.
  2. It made the credit fully refundable, providing financial assistance to many low-income families who don’t normally pay income taxes. 
  3. It provided advance payments of the credit for the final six months of 2021, providing immediate cash assistance to millions of families in the form of monthly checks.

The expanded and prepaid child tax credit helped lift many North Carolina families with children out of poverty. For many families, this money helped pay for child care, food, home and car repairs, and medical expenses last summer and fall. Most families with children received half of their child tax credit as monthly payments during the second half of 2021, thanks largely to nonprofits helping these families provide the necessary information to the Internal Revenue Service.

With a bit more help from nonprofits, many families can learn how to claim the second half of their child tax credit payments. Families are due to receive the remainder of their child tax credits as refunds when they file their 2021 federal income taxes. Your nonprofit can do three things to help families in your community access the full child tax credit:
  1. Encourage families to file their federal taxes by April 18. This is particularly important for families that normally don’t file tax returns because their income isn’t high enough to owe federal taxes.
  2. Provide clear information about how to file for the child tax credit. The www.childtaxcredit.gov website has clear and accurate information you can share, including flyers, sample social media posts, and toolkits with resources for nonprofits.
  3. Connect people with free tax filing assistance. To get their child tax credit, families will need to fill out their IRS Form 1040 and Schedule 8812 (the child tax credit form) correctly. Two good resources that offer free tax assistance for people with incomes below $58,000 are Volunteer Income Tax Assistance (VITA) and United Way MyFreeTaxes. The United Way of North Carolina has helpful information on tax preparation assistance at https://nc211.org/2021/10/01/tax-preparation-assistance.
Complete the 2022 Nonprofit Compensation Survey
Nonprofits often rely on salary surveys to determine whether they are compensating their staff fairly. To help nonprofits get the most current salary data, the Center has partnered with Association TRENDS on the 2022 NC Nonprofit Compensation Survey. It is important for every North Carolina nonprofit to respond to the survey to get the most comprehensive and accurate picture of compensation across the state. The Center has already taken the survey, and we have shared tips from our experience to make it easier and save time for other nonprofits.

Please take the 30 minutes (or less) to complete the survey by April 1. Participating organizations receive a discount on the 2022 report; participating Center members save even more.
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.