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Banner for the August 26, 2024 Nonprofit Champion Newsletter.

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 | August 26, 2024.

 
Flyer for the for the SLFRF Webinar.

Join the Free Webinar - Wednesday, August 28th

More than $86 billion available to charitable nonprofits and others are sitting in the coffers of state and local governments that must be spent or committed by the end of this year or the money is lost. This webinar, hosted by The NonProfit Times and featuring experts from the National Council of Nonprofits, is dedicated to ensuring nonprofits know about the availability of these dollars and how to access them before it’s too late.

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Top of the News

The Coming Tax Debate
Removing Tax Code Impediments to Volunteering

A unique feature of the charitable sector is the support provided by dedicated volunteers to address community needs and challenges. Many nonprofits facing increases in demand for services, staff shortages, and drops in revenue sources turn to volunteers to support their missions and create a meaningful experience for them. However, volunteer rates are declining. Federal tax policy actually discourages volunteerism in significant ways that must be redressed to reverse the trends in volunteering.

  • Why It Matters: The coming tax debate presents nonprofits with the opportunity to fix longstanding problems in the federal tax code. To promote volunteerism, that means raising the charitable mileage deduction and eliminating taxation of service stipends. 

[Read more]

 
Addressing Workforce Shortages

Workforce shortages may have greater adverse impacts on nonprofit missions but all sectors of the economy are affected and working on solutions. More than 20 states have enacted legislation to address requirements/qualifications for public employees, either by changing degree requirements or increasing accessibility for people with disabilities. A Wisconsin task force recently released recommendations focusing on education and training, recruitment and retention, and regulatory policy. Child care nonprofits in New Hampshire are supporting students who speak a language other than English to prepare them to become providers.

  • Why It Matters: Good ideas abound across the country for addressing workforce shortages and there are emerging approaches that could be adopted and expanded by nonprofit employers.

[Read more]

Federal News

Fastview
  • ERTC Voluntary Disclosure Program Reopened for Limited Time: Employers that submitted bogus or questionable claims under the Employee Retention Tax Credit (ERTC) have a new window of opportunity – until November 22 – to come into compliance, get a discount on repayments, and avoid future penalties, the IRS announced.
    [Read more]

  • Changes to the Head Start Program: The Department of Health and Human Services (HHS) issued a final rule on Head Start that will set an annual salary increase of $10,000 for most educators under the program and provide more flexibility on staff benefits.
    [Read more]

  • Employer-Matching Contributions for Student Loan Payments: Nonprofit and other employers that sponsor retirement plans will be permitted to provide matching contributions for employees based on their payments on student loans. 
    [Read more] 

  • Ban on Noncompete Agreements Blocked: The Federal Trade Commission (FTC) lacked the authority to impose a broad rule prohibiting noncompete clauses in most instances, a federal judge in Texas ruled as she blocked the rule from going into effect.
    [Read more] 

  • Deafblind Data Act: The Census Bureau would be required to expand collection of information on deaf and blind people on the American Community Survey, under bipartisan legislation introduced in the House this summer. 
    [Read more]

🗳️Voter Engagement

Election Tip
Still from the Online Voter Registration video.
Online Voter Registration

For most people across the country, online voter registration is the easiest way to check your status and register to vote on Election Day. Hear tips for voters to access online registration and for nonprofits to get involved in sharing registration information from Mary Alice Scott, Public Affairs Manager at the Maine Association of Nonprofits.

Watch the Video

State & Local News

Summer Special Legislative Sessions
  • Colorado: Governor Polis has called a special emergency session this week to seek a compromise on property taxes in order to avoid two ballot initiatives in November that would significantly cut rates.

  • Nebraska: A special session to address property tax increases resulted in a slimmed-down bill that automatically enrolls property owners in a tax credit program and caps local property tax revenue increases.

  • Utah: During a special session last week, lawmakers approved a measure for the November ballot asking voters to decide on a constitutional amendment giving legislators authority to alter voter-approved ballot measures.

[Read more]

 
Taxes, Fees, and PILOTs
Policymakers Imposing, Adjusting Costs on Nonprofits

Although charitable organizations are generally exempt from taxation, state and local governments regularly impose and adjust many taxes, fees, and Payments in Lieu of Taxes (PILOTs) affecting nonprofit operations:

  • Fire Protection Fee: A new Delaware law authorizes counties to impose a fire protection fee on property that is otherwise tax exempt.
  • PILOTs: Holyoke, Pennsylvania has hired a consulting firm to explore ways the city can secure revenues from charitable nonprofits that own property that is exempt from taxation.

  • Remote Sales: Legislation signed by North Carolina Governor Cooper removes 200 transaction thresholds for remote sellers in the administration of sales taxes.

  • Solicitation Registration Fee: A technical bill in Florida signed by the Governor provides an exemption for the solicitation registration fee based on total contributions during a fiscal year.

[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 child care

  • This preschool in Alaska changed lives for parents and kids alike. Why did it have to close?, Moriah Balingit, Associated Press, Aug. 5, 2024.

  • Trends in Federal Policy on Child Care and Early Childhood Education, National Conference of State Legislatures, July 29, 2024.

On the Employee Retention Tax Credit

  • Safeguard Against Uncertainty When Claiming Employee Retention Credits, CLA, Aug. 20, 2024.

On nonprofits and natural disasters

  • Disaster Resilience Is a State-Federal Balancing Act (8:22), National Conference of State Legislatures, Aug. 13, 2024.

  • Natural Disaster Tax Relief, National Council of Nonprofits, Aug. 12, 2024.

On nonprofit-government contracting

  • Indiana Local Government Officials’ Contracting With Nonprofits, Kirsten Grønbjerg and Eric Schmidt, Indiana University O’Neill School of Public and Environmental Affairs and the Lilly Family School of Philanthropy at Indiana University Indianapolis, Aug. 13, 2024.

On nonprofit employment data

  • Nonprofits accounted for 12.8 million jobs, 9.9 percent of private-sector employment, in 2022, Bureau of Labor Statistics, Aug. 16, 2024.

On nonprofit nonpartisanship

  • A new movement aims to remake evangelicals’ relationship to politics, Michelle Boorstein, Washington Post, Aug. 4, 2024.

On the overhead myth

  • Nonprofit overhead myths harm organizations’ ability to pay staff, Jack Dodson, Utah Business, Aug. 16, 2024.

Advocacy in Action

Beyond the Slogans: Advancing Democracy With Purpose

Partisan political campaigns tend to co-opt perfectly legitimate terms and concepts for their own purposes. The recent national party conventions pitted “Freedom” versus “Make America Great Again.” But for the dripping partisan rhetoric they represent, the slogans could just as well appear on red, blue, purple, rainbow, or any other color bumper stickers representing the American spirit. We at the Advocacy in Action department haven’t changed our views with the times – we are as adamant as ever that nonprofit nonpartisanship is the path to a better, stronger, fairer America. To prove it, here is a late summer reading list of past articles dedicated to advancing democracy in America through nonpartisan engagement.

Read the full article

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