Federal Legislation & Issues

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Current Legislation & Issues

Charitable Giving Tax Deduction

2017 marks the 100th anniversary of the charitable tax deduction. Congress and the new administration are expected to reevaluate federal tax policies, most, notably the charitable deduction.

Your legislatures need to hear from you; let them know what the charitable deduction makes possible for your organization, your fundraising efforts and your donors. Send a letter, email and post on social media (use hashtags #100yearsofgiving and/or #ProtectGiving), see a copy of PANO’s letter below.

US Department of Labor: Overtime Reforms

Federal Judge Blocks Overtime Rule
Late on Tuesday, November 22, a federal district judge in Texas issued a preliminary injunction blocking implementation of the Overtime Final Rule, ruling that the U.S. Department of Labor exceeded its authority. Barring a last-minute appeal, the overtime rule will not go into effect as scheduled on December 1 because of this decision.

At issue is the question of which employees qualify for an exemption from the requirement under the federal Fair Labor Standards Act (FLSA) that most employees are entitled to time and a half overtime pay for work in excess of 40 hours in a week. The FLSA exempts from the overtime requirement "any employee employed in a bona fide executive, administrative, or professional capacity," often called the EAP or "white collar" employees. Current regulations require that employees must possess the duties of executives, administrative workers, or professionals and be paid more than a minimum salary. The overtime rule published by the Labor Department in May, and set to go into effect on December 1, would have more than doubled the existing "salary level test" for exempt white collar employees from $455 per week ($23,660 per year) to $913 per week ($47,476 per year).

Twenty-one Governors and Attorneys General filed suit in federal court challenging the overtime rule on several grounds. Siding with the states, Federal Judge Amos Mazzant held that the white collar exemption is clearly based on the duties that individual employees perform, and that the Labor Department did not have the authority to create a different or higher standard. Specifically, he ruled: "Congress gave the Department the authority to define what type of duties qualify

On December 1 the Department of Justice on behalf of the Department of Labor [" title="filed a notice to appeal" href="https://www.dol.gov/whd/overtime/final2016/litigation.htm" target="_blank">filed a notice to appeal the preliminary injunction to the U.S. Circuit Court of Appeals for the Fifth Circuit.

In the summer of 2015 the U.S. Department of Labor proposed new rules that would determine which workers are eligible for overtime pay. Wednesday, May 18, the Department of Labor announced the final overtime regulations that raises the minimum salary level from $23,660 to $47,476 for employees to be exempt from overtime pay. The rule was set to take effect on December 1, 2016 and the threshold will be updated every 3 years. For more information check out:
Fact Sheet
DOL Overview and Summary
Overtime Rule and the Nonprofit Sector
Guidance for Nonprofit Organizations on Paying Overtime under
the Fair Labor Standards Act

• National Council of Nonprofit Resources
- Overtime Regulations and the Impact on Nonprofits
- Breaking down your nonprofit's obligation to pay overtime under the new federal rules
Complying with the New Overtime Rule under the FLSA
FLSA Overtime Calculator Advisor

Recent Legislation & Issues

OMB Uniform Guidance

The federal Office of Management and Budget (OMB) released the interim final regulations on the Uniform Guidance (effective December 24, 2014). Included are important changes to: reimbursement for indirect costs, cost allocation, audit threshold and procurement.

Check out OMB Uniform Guidance Webinar Recording (1 hour)
A special thank-you to our presenters from the National Council of Nonprofits: David L. Thompson, Vice President of Public Policy and Beth Bowsky, Policy Specialist for Government-Nonprofit Contracting.

For more information, check out these resources:

Partnering for Impact: Government-Nonprofit Contracting Task Forces Produce Results for Taxpayers

Nonprofits and governments can reduce their own costs, improve services provided to constituents, and return greater value to taxpayers by creating government-nonprofit task forces to develop and implement recommendations to reform contracting practices and procedures. That is the key finding of a new report of the National Council of Nonprofits, which conducted an extensive analysis of joint task forces in nine states charged with rooting out waste while maintaining and even enhancing accountability.

The report provides a how-to guide for nonprofits, working with their State Associations, who want to streamline the government-nonprofit contracting process. It also provides practical guides for building collaborative relationships with government officials. Download the Report

National Study of State Contracts and Grants – 2013

This compilation of state profiles from the Urban Institute's 2013 National Survey of Nonprofit-Government Contracting and Grants, provides national and state-by-state snapshots of most types of nonprofit organizations that have contracts and grants with local, state, and federal governments. The individual state profiles are designed to document the extent of nonprofit-government contracting, processes and problems.

Full Report (PA stats start on page 91)

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