October 29, 2021
In this issue...
Congress and White House agree on framework for $1.75 trillion federal spending plan 
Governor Cooper and legislators continue state budget negotiations
Take 2 minutes today to share information about job vacancies at your nonprofit
Congressional subcommittees discuss COVID-19 vaccination requirements for employers
State legislators prepare new state legislative and congressional districts
State legislative subcommittee to explore use of federal COVID-19 funds in North Carolina
Early voting ends tomorrow for 2021 municipal elections
Learn more about exclusive provider organization health plans 
IRS establishes standards for 501(c)(3) status for limited liability companies
Congress and White House Agree on Framework for $1.75 Trillion Federal Spending Plan
Yesterday, President Joe Biden announced that he has reached an agreement with congressional Democrats on a spending plan to implement President Biden’s “Build Back Better” agenda. The $1.75 trillion plan would include a wide variety of investments in federal programs, including:
  • Continuing the expanded Child Tax Credit ($3,600 per child under age 6 and $3,000 per child aged 6–18) for one year, along with permanent refundability of the tax credit. 
  • Funding for universal pre-K for young children for the next six years.
  • Funding for Medicaid expansion in North Carolina and the other 10 states that have opted out of this provision of the Affordable Care Act. This would provide health coverage for more than half a million North Carolinians in the health care coverage gap (who make too much to qualify for Medicaid but not enough to receive health care subsidies).
  • Limiting child care costs to 7% of income for working families earning up to 250% of state median income for the next six years.
  • Extending the expanded earned income tax credit for childless workers for one year. 
  • Providing $3.2 billion in additional funding for national service programs, as well as $600 million for AmeriCorps.
  • Expanding Medicaid home care services for seniors and people with disabilities. 
  • Providing $150 billion toward public housing, rental assistance, down payment support, and "building more than 1 million new affordable rental and single-family homes." 
  • Investing $555 billion for climate programs, including $320 billion in expanded tax credits for clean energy. 

Unlike earlier proposals for the Build Back Better plan, the negotiated framework that was announced yesterday does not provide for 12 weeks of paid family and medical leave for all workers.

Congress could vote on the plan as early as next week. Because it is being passed using the budget reconciliation process, it only needs a simple majority vote in both the U.S. Senate and the U.S. House of Representatives, meaning it can pass with only Democrats in Congress voting for it.
Governor Cooper and Legislators Continue State Budget Negotiations
Over the past two weeks, state legislative leaders have continued negotiating with Governor Roy Cooper on the final version of the state budget for FY2021-23 (S.105). The main areas of disagreement between the Governor and legislative leadership appear to be funding for public schools, Medicaid expansion, individual and corporate income tax cuts, and pay raises for teachers and state employees. Legislators and Governor Cooper have exchanged several counteroffers on these budget provisions and could reach a final agreement as soon as next week. The new budget could provide several million dollars in new funding for nonprofits. The Center has prepared a chart comparing various appropriations and provisions affecting nonprofits in the House-approved budget and the Senate-approved version.
Take 2 Minutes to Share Information About Job Vacancies at Your Nonprofit
Nonprofits in North Carolina and around the country are struggling to fill vacancies at their organizations. To help learn more about the sources of these problems and to try to develop policy solutions, the National Council of Nonprofits has launched a brief survey on the nonprofit workforce shortage. Please take two minutes to complete the survey.
Congressional Subcommittees Discuss COVID-19 Vaccination Requirements for Employers
On Tuesday, two subcommittees of the U.S. House of Representatives Committee on Education and Labor held a hearing on employer vaccination requirements. Congresswoman Alma Adams (D-NC), one of the subcommittee chairs, opened the hearing by noting that many North Carolina nonprofits and businesses are requiring their employees to be vaccinated and explaining that “it is clear that the most effective way to boost vaccination rates is through workplace vaccination requirements.”

Prior to the hearing, the National Council of Nonprofits sent a letter to staff of subcommittee members to alert them to the charitable nonprofit perspective on the question of COVID-19 vaccinations and testing. The letter referenced the Center’s analysis of vaccination considerations for nonprofits, which includes tips to help your organization develop a COVID-19 vaccination policy for your employees.
State Legislators Prepare New State Legislative and Congressional Districts
Over the past three weeks, state legislators have drawn a variety of potential maps to use for the congressional and state legislative districts for elections between 2022 and 2030. Next week, legislative committees will begin considering and voting on these maps. Critics, including legislative Democrats and good government nonprofits, have been critical of many of the maps that have been drawn thus far. In the past, the Center has expressed concerns that gerrymandering (i.e., overly partisan redistricting plans) diminishes nonprofits’ influence on public policy because it tends to create non-competitive congressional and legislative districts and makes elected officials more responsive to their partisan political donors than to the nonpartisan nonprofits providing services in their districts.
State Legislative Subcommittee to Explore Use of Federal COVID-19 Funds in North Carolina
Next Wednesday, a new subcommittee of the Joint Legislative Committee on Governmental Operations will hold its first meeting to discuss the use and distribution of federal COVID-19 funding in North Carolina. State legislators and Governor Cooper have used a significant amount of the state’s funding from the CARES Act to support nonprofits’ programs and operations, and they are also likely to invest a significant portion of the state’s American Rescue Plan Act funding in the work of nonprofits. The subcommittee may seek input from nonprofits about what has worked and what could be improved about the prioritization and distribution of federal COVID-19 funds to North Carolina nonprofits. The Center will keep you posted about such opportunities, and encourages those who may wish to make their voices heard by policymakers to consult Center resources designed to help constituents write effective letters and have persuasive conversations with decision makers.
Early Voting Ends Tomorrow for 2021 Municipal Elections
Tomorrow (Saturday) is the final day of Early Voting in many of the cities and towns around North Carolina holding municipal elections this fall. One highly effective way to help ensure that your staff, volunteers, and the people you serve participate in these elections is to publicize the Early Voting hours and locations in the counties you serve. Simply consult the NC State Board of Elections’ One Stop Early Voting Site List and push out the relevant information via your emails, social media, and flyers today! With some counties changing voting sites due to COVID-19, the few minutes you put in to look up this information and push it out to everyone your nonprofit can reach has the potential to help hundreds of voters cast their ballots more easily.

North Carolinians in cities and towns with 2021 elections can also vote on Election Day next Tuesday at their regular polling places. You can find your polling place and what is on your ballot (and whether there is an election in your city or town) at the NC State Board of Elections voter search tool.
Learn More About Exclusive Provider Organization Health Plans
A new law that took effect this month allows North Carolina nonprofits and businesses to offer exclusive provider organization (EPO) health plans. EPO plans, which typically cost about 15% less than traditional health insurance, allow participants to receive medical services from a limited pool of health care providers. Some nonprofits that haven’t been able to afford health coverage for their employees in the past may be interested in considering offering EPO plans. This week, NC Health News, a nonprofit news service, wrote an excellent overview of EPO plans, including clear explanations of how they differ from other types of health insurance plans and potential advantages and disadvantages of EPO plans for nonprofits and their employees. The Center encourages nonprofits that might be interested in EPO plans to read the article to get a better sense of whether this is the right type of arrangement for their organizations.
IRS Establishes Standards for 501(c)(3) Status for Limited Liability Companies
Last week, the Internal Revenue Services issued new guidance setting standards for limited liability companies (LLCs) to be recognized as 501(c)(3) tax-exempt entities. The standards include a variety of provisions that LLCs must include in their articles of organization and operating agreements to achieve 501(c)(3) status. While LLCs have been able to be recognized as 501(c)(3) tax-exempt entities in the past, the new guidance provides clearer standards for their tax exemption.
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.