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North Carolina Addresses Nonprofit Tax Challenges

Recent efforts by North Carolina lawmakers reflect the ongoing tax challenges affecting nonprofit communities around the country. Joining Kansas and Vermont in rejecting efforts to curtail state tax incentives, the North Carolina Senate tax-writing committee has approved the removal of two provisions from a bill that would have slashed the sales tax exemption for nonprofits and added charitable contributions to a restriction on itemized deductions. The decision is opposite of what the Maine Legislature did this year, which added charitable donations to an existing limit on itemized deductions. Maine legislators, however, rejected multiple attempts to cut property tax exemptions for. Read More.

New York Upholds Donor Disclosure Requirement

After Citizens United attempted to block the New York Attorney General Eric Schneiderman’s policy requiring nonprofit organizations to reveal the names of their donors, the U.S. District Court for the Southern District of New York has sided with Schneiderman. According to the ruling filed July 27th , if a registered charity chooses to fundraise in the state of New York, the names, addresses and contributions of their major donors must be disclosed to the Attorney General’s office. The New York ruling reflects recent legislative efforts requiring social welfare nonprofit groups under federal tax code section 501(c)(4) to provide more transparency for how their activities. Read More.

Nonprofit Workers Impacted by Proposed Overtime Changes

Discussed in Cherry Bekaert’s Benefits Consulting’s recent Compensation & Human Capital Consulting Update , the U.S. Department of Labor (“DOL”) has proposed rules that expand current overtime protections. Affecting nonprofit, for-profit and government workers, the draft regulations propose nearly doubling white-collar employees’ minimum salary level, from $23,660 to $50,400, to receive exemption from overtime pay. The DOL also proposes increasing the minimum salary threshold for “highly compensated employees”, from $100,000 to over $120,000, and seeking feedback regarding whether an automated method for future salary level increases should be established. Comments on the proposed regulations are due Friday, September 4th. In the meantime, the National Council of. Read More.

Notre Dame Professor Says Nonprofits Have Higher Accounting Errors

When it comes to which organizations commit the most accounting errors, a recent study by Jeffrey Burks suggests that nonprofits are leading the pack. According to the University of Notre Dame professor, the amount of accounting errors at nonprofit organizations is nearly twice the number of for-profit companies of similar sizes. Observing that all sizes of nonprofit organizations tend to have high accounting errors, Burks said, “The clients of the largest eight audit firms in the country have a significantly lower rate of errors. The clients of these large audit firms tend to be large nonprofits, but the effect does. Read More.

Supreme Court to Review Case on Affirmative Action in College Admissions

In late June, the U.S. Supreme Court agreed to hear its second case in three years concerning the constitutionality of considering a student’s race and ethnicity in college admissions. Beginning later this fall, the case focuses on the college admissions practices at the University of Texas at Austin, which gives justices an opportunity to limit or ban the consideration of race in such instances. While affirmative action supporters praise the Supreme Court’s decision to review the case, many legal observers are worried due to the current justices’ voting record on government policies involving race. For the full story , please visit the Inside. Read More.

Gates Foundation Supports FAFSA Simplification

Two months after Senator Lamar Alexander (R-Tenn.) introduced legislation to simplify the 108-question FAFSA application form, the Bill & Melinda Gates Foundation (“the Foundation”) announced plans to be more proactive in higher education policy discussions. Signifying its first action since the March announcement, the Foundation has published a white paper favoring a redesigned FAFSA form to make it easier for students to receive college loans and grants from the federal government. Reflecting the concerns of numerous groups and policy makers, the Foundation said the existing application process is complicated, redundant and ill-timed. As an alternative, the white paper says students should face. Read More.