Welcome to your daily briefing on nonprofit developments in North Carolina. Today we're covering 8 key stories including updates on north carolina nonprofit headlines, background & context. Let's dive in.
5 stories
The NC Community Foundation is accepting applications for nonprofit grants across North Carolina to fund community initiatives, education, health, and human services.
Nonprofit professionals in NC can access critical funding streams to sustain and expand their programs serving local communities.
The NC state government maintains a single page with links to grant programs across multiple NC agencies, directing questions to the administering agencies.
Nonprofit professionals in NC can use this centralized resource to identify potential funding streams without navigating individual agency websites separately.
The NC Secretary of State's office encourages North Carolinians to contact its Charitable Solicitation Licensing Section to research an organization's background before donating.
Nonprofit professionals in NC should understand that prospective donors are being directed to verify organizational credentials, making transparency and proper licensing essential to fundraising success.
Effective July 15, 2021, the North Carolina Secretary of State requires a completed, signed, and notarized signature page to be uploaded as part of the online charity application process.
NC nonprofit professionals must ensure their filings include proper notarization to avoid delays or rejections in their charity registration.
The Duke Energy Foundation has made $500,000 available for North Carolina nonprofits to apply for $25,000 grants supporting parks, water, and habitat restoration projects, with applications due March 13.
This funding opportunity gives NC nonprofit professionals a direct path to secure significant project dollars for environmental initiatives in their communities.
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3 stories
Unrelated business income tax applies when an activity is regularly carried on, is a trade or business, and is not substantially related to the exempt purpose. Common surprises: corporate-sponsored events with naming rights that look like advertising, affinity credit-card royalties that include co-marketing services, and gift-shop sales of items unrelated to the mission.
UBIT exposure can cost both tax and exempt status if the unrelated business becomes substantial. The line between sponsorship (excluded) and advertising (included) is narrow and case-specific.
Private inurement is benefit flowing to insiders (officers, directors, key employees); it is an absolute prohibition. Private benefit is benefit to outsiders that is more than incidental to the exempt purpose; it is a question of degree. Both can revoke exemption, but the legal analysis differs.
Insider transactions trigger automatic intermediate sanctions even when the exemption survives. Outsider benefit triggers a facts-and-circumstances analysis. Distinguishing them shapes the defense.
The IRS-recommended COI policy requires (1) annual disclosure by all directors and key employees, (2) a process for review of any disclosed conflict, (3) recusal procedures, and (4) documentation in board minutes. Policies that have only the disclosure form without the review and recusal process do not satisfy the recommendation.
A weak COI policy is a Schedule L disclosure waiting to happen, and Schedule L disclosures correlate with future IRS examination selection.
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