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Welcome to the Nonprofit Champion, our biweekly public policy newsletter. This email format provides brief digests of the full articles to help readers quickly access information. For more details about a specific item, see the full newsletter posted online Nonprofit Champion | June 17, 2024.

Top of the News

Overtime Final Rule Goes into Effect in 14 Days, Court Permitting

The Department of Labor’s Overtime Final Rule is scheduled to go into effect on July 1 – in just two weeks – unless a federal court intervenes. The revised regulations require employers to pay “white collar” employees salaries of at least $844 per week ($43,888/year) for them to remain exempt from overtime pay for working more than 40 hours. This month, the state of Texas filed a federal lawsuit challenging the Overtime Final Rule. This is the second lawsuit alleging that DOL exceeded its authority in issuing the rule. Both were filed in the same federal district court in Texas that struck down the proposed overtime regulations at the end of the Obama Administration.

  • Why It Matters: It is not possible to accurately predict when or how the federal judge in Texas will decide on whether to block the rule from going into effect; nonprofits should be preparing now for the overtime changes to ensure compliance.

[Read more]

 
Overtime Webinars in the States

Although the new DOL Overtime Final Rule is a matter of federal law, the adjustments nonprofit and other employers must make can be influenced by state labor laws. Webinars hosted by state associations of nonprofits are addressing the effect on charitable nonprofits in those states.

[See list of recent and upcoming webinars]

 
Court Blocks Race-Conscious Philanthropy

A federal appeals court ordered the charitable nonprofit Fearless Foundation to suspend a grant program for businesses owned by Black women. The plaintiffs allege that the grant program violates longstanding federal law prohibiting racial discrimination in private contracts. The case moves back to a federal trial court for further consideration.

  • Why It Matters: The case further restricts race-conscious problem solving, potentially further frustrating the ability of charitable organizations and philanthropy to utilize private resources to address longstanding inequities.

[Read more]

Federal News

Federal Fastview
  • Dismantling DEI: On Friday, the House narrowly passed the defense policy bill that would block DEI trainings and offices at the Pentagon. Last week also saw the introduction of a bill, the Dismantle DEI Act, that seeks to eliminate all federal programs that advance diversity, equity, and inclusion. It would specifically prevent the awarding of federal grants and contracts to charitable nonprofits and other entities that utilize prohibited DEI practices. [Read more]

  • Extending the Affordable Connectivity Program: Last month a federal program ran out of funding that had been providing 23 million eligible households a discount on their monthly internet bill. On June 12, Representative Gallego (D-AZ) introduced the Saving Americans' Valuable Earnings on the National Affordable Connectivity Program (SAVE on ACP) Act, a bill that would replenish the ACP with $6 billion. [Read more]

  • Securing Nonprofit Workforce Data: With the exception of the charitable sector, virtually all other categories of employers get quarterly wage and employment data from the Bureau of Labor Statistics (BLS). In a letter to key congressional leaders, nonprofit organizations made the case for data parity, asking Congress to require BLS to incorporate nonprofit organizations in its quarterly surveys of employers. [Read more] 
 
Disparities Detailed in the Federal Income Tax System

A dozen aspects of the federal income tax system exacerbate disparities between Black, Latine, and White families across and within income groups, according to a recent study from the Tax Policy Center. The analysis found disparate impacts when examining the tax treatment of labor and capital income, subsidies for higher education and charitable deductions, and family characteristics, such as marital status, children, and citizenship.

[Read more]

 
Flyer for the PSLF Coalition asking for Public Service Professionals to share their PSLF experience.
Take the Public Service Student Loan Relief Survey

The PSLF Coalition, which is leading efforts to simplify and advance student debt relief for nonprofit employees and others, wants to hear from you if you’re working at a charitable nonprofit or in public service and earning forgiveness under the Public Service Loan Forgiveness (PSLF) program.

[Take the 2-minute survey]

🗳️Voter Engagement

Election Tip
Button with the text, "Help America Vote."
Volunteer as a Poll Worker!

Each election, millions of people across the country volunteer to "Help America Vote" by signing up to a be Poll Worker. These volunteers are essential to ensure elections run smoothly, and each voter’s voice is heard. In a year in which the “logistics of administration” and “finding and adequately training poll workers” is one of the top five concerns for election officials, this is the time to donate your time if you can.

[Learn more about becoming a poll worker]

State & Local News

Employment Law Updates

State lawmakers continue to advance worker-friendly legislation. The latest actions focus on reducing the gender pay gap, lowering student debt burdens, and encouraging more retirement savings.

  • Pay Transparency: This month, lawmakers in Minnesota and Vermont enacted pay transparency requirements for new hires in their respective states in an effort to close the gender pay gap. Both laws require employers to disclose the starting annual salary range or hourly wage in all new job postings. 

  • Student Loan Repayment: A new Illinois law establishes a program to facilitate student loan repayment assistance by qualified community foundations for qualified workers at nonprofits and certain other businesses. The law clarifies that loan assistance is not included as taxable income. 

  • Retirement Savings: The Rhode Island Legislature has passed and sent to the Governor for his consideration a bill to establish a new retirement savings program for eligible employees of eligible employers, including nonprofits, that do not currently offer a retirement savings program.

[Read more]

 
State Charitable Giving Incentives Update

Charitable giving incentives have been top of mind for state legislators this spring, and the results are showing.

  • Colorado: Last month, the state enacted a law enabling taxpayers to claim a state income tax credit when donating through an intermediary charitable nonprofit to a qualified charitable organization.

  • Illinois: The newly approved Illinois Gives Tax Credit Act (“Illinois Gives”) authorizes a 25% state income tax credit for donations to eligible permanent endowments held by dozens of community foundations in the state.

  • Maryland: The state has extended for three more years the income tax deduction for donations of diapers, feminine hygiene products, child hygiene products, and cash donations to certain qualifying charitable nonprofits. It also created a charitable tax credit for expenses incurred for processing and donating deer meat to certain qualifying charitable nonprofits.

  • Missouri: Separate measures on the Governor’s desk would create 50% tax credits for donations to a local hospital foundation and for gifts to qualified nonprofit organizations providing recovery support services and assistance to justice-involved individuals and people in recovery from substance abuse disorders. 

  • North Carolina: A pending bill would reinstate a 25% tax credit for donations of real property for forest or farm preservation, fish and wildlife conservation, buffer zones, or floodplain protection.

[Read more]


Read the full newsletter for additional quotes, research, Numbers in the News, and upcoming advocacy events to put the news in greater context and help you frame the debate.

Read more

Nonprofit Library

On arts economic impact

  • Creative Economy State Profiles, National Assembly of State Arts Agencies, accessed June 17, 2024.

On child care

  • Child Care Sector Jobs: BLS Analysis, Center for the Study of Child Care Employment, June 10, 2024.

  • For child care workers, state aid for their own kids’ care is ‘life-changing’, Elaine S. Povich, Stateline, June 17, 2024.

On the DOL overtime final rule

  • Nonprofits brace for financial strain under new federal rule, Marnie Taylor, The Journal Record (Oklahoma City), June 14, 2024.

On race-conscious philanthropy

  • As Court Rules Against Fearless Foundation, Council, Independent Sector Stand by Commitment to Funders’ Right to Give in Line With Values, news release from Council on Foundations and Independent Sector, June 3, 2024.

  • Backlash against DEI spreads to more states, Erika Bolstad, Stateline, June 14, 2024.

  • Fearless Fund Ruling Could Challenge Business as Usual For Foundations, David Bowermaster, Forbes, June 11, 2024.

  • How business leaders and civic partners in small and midsized U.S. cities can advance racial equity and inclusive economic growth, Brookings Institution, June 10, 2024.

On voter registration rules

  • 1 in 10 eligible U.S. voters say they can’t easily show proof of their citizenship (3:30), Hansi Lo Wang, NPR, June 11, 2024.

  • New voter registration rules threaten hefty fines, criminal penalties for groups, Matt Vasilogambros, Stateline, June 7, 2024.

Advocacy in Action

A Nonprofit’s Quick-and-Dirty Guide to Meeting Elected Officials

By: Kevin Dean

So, you’ve landed a meeting with your elected official – a chance to champion your nonprofit’s cause and make a real difference. But let’s be honest, that first meeting can feel intimidating. Don’t worry, it’s perfectly normal to have a few butterflies! At my first Lobby Day in Washington, DC, I was terribly nervous! Not only did I accidentally get melted chocolate all over my suit (I’m still blaming Andrea!), I also had a near panic attack when a legislative aid asked me a question I couldn’t answer. He wasn’t even a Congressman, and I was sweating bullets. Imagine if it had been a Senator!

Read more

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