PMA Consulting, LLC

Image for Town Hall Meeting Discussed Key Public Policy Issues Affecting NonprofitsImage for Town Hall Meeting Discussed Key Public Policy Issues Affecting Nonprofits

Town Hall Meeting Discussed Key Public Policy Issues Affecting Nonprofits

On Wednesday, January 7, 2015, the N.C. Center for Nonprofits hosted a Nonprofit Town Hall Meeting For Mecklenburg County at the Levine Museum of the New South in Charlotte, NC. PMA’s Deviré Robinson joined the conversation, which was intended to engage area nonprofit leaders in a discussion on key public policy issues affecting nonprofit organizations. The conversation focused on topics such as the ongoing challenges to nonprofit tax exemption and incentives for charitable giving, potential changes to rules for nonprofits with government grants and contracts, and other major policy initiatives that could affect nonprofits.

Several North Carolina state legislators who serve the Mecklenburg County area were present and they shared their thoughts on how nonprofit leaders can best advocate their organization’s mission to state government. All agreed that it is incredibly important for nonprofit leaders to effectively communicate with their respective state representatives so that legislators are keenly aware of what issues matter the most.

Key Public Policy Issues Affecting Nonprofits

Nonprofit Tax Exemption

North Carolina currently has a cap placed on nonprofit sales tax refunds. This year nonprofits organizations should know that a few changes are possible to:

  • Sales tax (most nonprofits currently can get refunds)
  • Business taxes (most nonprofits are currently exempt)
  • Property tax (many nonprofits are currently exempt)

Incentives for Charitable Giving

While the charitable deduction was preserved for individuals and businesses in 2013, the tax credit for charitable contributions by non-itemizers ended. As the current legislature considers tax reform, it is possible that nonprofits will face limitations to tax deductions.

Sales Tax on Services

In North Carolina, the sales tax applies to admission fees to entertainment. This has had many unintended consequences for nonprofits. In 2015, there may be a further extension of sales tax to services offered by nonprofits.

Workers’ Compensation

As the law now stands, nonprofits with three or more staff or officers must carry workers’ compensation insurance. This applies to many nonprofits without paid staff.

The above issues are just a few of the public policy matters affecting North Carolina nonprofits that were raised at the Town Hall Meeting. For more information, please visit the N.C. Center for Nonprofits website at www.ncnonprofits.org.