State legislators, including Senators Tamara Barringer (R-Wake) and John Alexander (R-Wake), are currently negotiating a final version of the state budget.
Please help your local non-profits; consider calling Senators Barringer and Alexander this week to let them know that these issues are important to nonprofits that provide essential services in our community. You can reach them at 919-733-5653 (Barringer) and 919-733-5850 (Alexander), and it is best to call by noon on Thursday.
Below is a sample script that you can use when calling your Senators. It is always best if you can tell them about the important work that your nonprofit does.
As further background, the tax provisions in the Senate budget would:
Lower the annual cap on nonprofit sales tax refunds from $45 million to $1 million. This downward trend could be a first step to eliminating sales tax refunds for all nonprofits. For more, see the Center's talking points on sales tax refunds.
Include the charitable deduction in a $20,000 cap on itemized deductions. This would likely reduce charitable giving by $60 million - $900 million per year in North Carolina. For more, see the Center's talking points on the charitable deduction.
Thank you for all that you do,
"Hello Senator Barringer/Alexander,
As a constituent, I want to encourage you - in the budget negotiations - to make it a priority to protect the charitable deduction and nonprofit sales tax refunds.
I [work at/volunteer at/serve on the board of] [the Lung Cancer Initiative of NC] in [Raleigh] that [provides lung cancer education, edvocacy, research funding and patient support]. Local nonprofits like ours here in your district have two concerns about the tax provisions in the Senate budget.
Our first concern is that the $20,000 cap on itemized deductions would basically eliminate any state incentives for charitable giving. The Senate's proposal would reduce private charitable giving in North Carolina by hundreds of millions of dollars a year. Now, when 60% of nonprofits aren't able to meet the demand related to basic needs, this would hurt even more our ability to serve our communities. The result would increase the number of North Carolinians that rely on government services. Charitable donations sustain our organization; the support of our advocates makes up the majority of our income.
Our second concern is the proposal to reduce the cap on nonprofit sales tax refunds. While this new tax may only appear to affect large organizations, the proposal is troubling to all nonprofits because it suggests that the Senate's next step will be to tax all charitable nonprofits.
The proposal also could jeopardize the services that smaller nonprofits provide in collaboration with larger organizations. It could deter churches and other nonprofits from building new facilities, which could take business away from local builders and contractors.
Please protect the charitable deduction and nonprofit sales tax refunds as you negotiate the budget.
Thank you for your public service for helping us in nonprofits to make our district a better place to live and work."