Advocacy & Civic Engagement

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David Heinen, Vice President for Public Policy and Advocacy, North Carolina Center for Nonprofits

November 16, 2017

This fall, Congress is in the process of rewriting the Internal Revenue Code with the dual goals of lowering individual and corporate income tax rates and simplifying our nation’s tax laws. This tax overhaul has major implications for 501(c)(3) nonprofits. 

This summary of North Carolina's lobbying laws for nonprofits covers state statutes and federal requirements for lobbying registration and reporting, as well as restricted activities such as the lobbyist gift ban.

See also: Lobbying Tracking Guide

The OMB Uniform Guidance establishes important rights for nonprofits: "Governments at all levels – local, state, and federal – that hire nonprofits to deliver services are now required to reimburse nonprofits for the reasonable indirect costs (sometimes called “overhead” or “administrative” costs) they incur on behalf of governments when federal dollars are part of the funding stream. The new mandate is embedded in grantmaking rules that the federal Office of Management and Budget (OMB) put into effect at the end of 2014.

Under current law, charitable nonprofits in North Carolina pay sales and use tax on their purchases and can apply for semi-annual refunds of the taxes they pay. A system of sales tax exemption would save nonprofits time and reduce administrative burdens. Bipartisan bills in both the House (H.B. 882) and Senate (S.397) would replace the nonprofit sales tax refund system with sales tax exemption for most 501(c)(3) nonprofits.

The Urban Institute's 2010 report on government contracting with nonprofits uncovered long-standing problems experienced by private nonprofits in North Carolina that provide public services through contracts with federal, state, and local governments.

Nonprofits are trusted in our communities, making us the ideal messengers to provide people with voter guides.

© North Carolina Center for Nonprofit Organizations, Inc. From Common Ground, a publication of the North Carolina Center for Nonprofits, www.ncnonprofits.org.

This guide offers clarification on how the FLSA generally, and the white collar exemptions specifically, apply to the nonprofit sector. (U.S. Department of Labor)

See also: Breaking down your nonprofit's obligation to pay overtime by National Council of Nonprofits