State budget and nonprofits

Last updated January 3, 2023


State budget. It is important for state legislators and the Governor to agree on a state budget each year to ensure that there is adequate state support for current needs in communities throughout North Carolina.

Prompt payment, red tape, and full payment for costs.

  • Support polices to ensure that state agencies: (a) deliver contracts to nonprofits in a timely manner; (b) avoid delays in paying nonprofits that deliver services; and (c) inform them in advance if a payment will be late.
  • Support adequate funding for grants and contract management staff in all state agencies that collaborate with nonprofits to provide public services through grants and contracts and for the NC Office of State Budget and Management.
  • Support policies that provide for multi-year contracts with nonprofits with recurring state funds and automatic short-term contract extensions when contracts are not renewed on time to ensure continuity of services by nonprofits.
  • Support policies that will reduce overly complex application and reporting requirements for nonprofits with state grants and contracts. Examples of such policies may include the elimination of redundant reporting and audit requirements, the use of document vaults by state agencies to minimize redundant filings by nonprofits, and consistent use of electronic funds transfer by state agencies.
  • Support policies that prevent state agencies from unilaterally making changes to nonprofits’ contracts after the execution of the contract, except in circumstances where such changes are absolutely necessary.
  • Support policies and appropriations that ensure that nonprofits with state grants and contracts have fair and reasonable indirect cost rates and that the state establishes a de minimis 10% indirect cost rate on grants and contracts with nonprofit service providers.
  • Support full and fair implementation of the OMB Uniform Guidance in state and local contracts.


Adequate and appropriate state support for public services provided by nonprofits

  • Support continued state investment in the work of nonprofits through appropriations and grants.
  • Support enactment of a state budget each year to ensure adequate state support of current community needs.
  • Oppose unfunded mandates for nonprofits in the state budget.
  • Support transparency in the state budget process, including the process for determining which nonprofits receive state funds.
  • Oppose government policies – including state budget provisions, separate legislation, and executive action – that limit nonprofits’ ability to receive government grants or contracts based on factors such as efficiency ratios or nonprofits’ organizational policies.