Over the past year, the MNN team and a dedicated group of community partners have worked to advocate for policies that were successfully adopted. From promoting tax policy to incentivize donors to lessening the burden of nonprofit paperwork, our policy efforts are a key part of the work that we do. Explore this page to learn more, and read through the MNN Public Policy Agenda for an overview of our goals.
State Charitable Tax Deduction
As of January 1, 2023, Massachusetts now has a charitable contributions deduction. The deduction is universal—available to all Massachusetts taxpayers, even those who don’t file Schedule A with their federal tax returns. The Massachusetts deduction provides nonprofits with a new tool to promote giving and increase fundraising revenue.
MNN has long supported the charitable deduction, which was passed by voters in 2000, but delayed most recently during the pandemic. Its universality provides nonprofits with a new tool to encourage, and support, a wide range of donations including those from low- or mid-income supporters who don’t itemize federal deductions. For more information and resources, visit this page.
Nonprofit Filing Amendment
Attorney General Andrea Joy Campbell announced a policy change making it easier for small nonprofits to comply with state reporting requirements.
Nonprofits with annual revenues below $25,000/year no longer have to submit a 24-page packet of IRS forms to the Attorney General’s office when they file the state Form PC. This will benefit thousands of small nonprofits across the state, as every nonprofit is required to file a Form PC each year.
MNN has been working on this issue with officials in the Attorney General’s office, passing along information to them about the costs associated with preparing the 24-page packet, and discussing ways to help nonprofits meet disclosure requirements. As of September 1, the Form PC will be required to be filed online through a recently-developed state portal. More information is available on the Attorney General’s website.
Remote Voting
On March 28th, 2023, Governor Healey signed H.58, her first supplemental budget, which included language that will permanently allow nonprofits to hold and vote at remote meetings (Section 21). MNN worked with a coalition of nonprofits and associations to advocate for this allowance.
Specifically, the bill allows nonprofits to meet in-person, remotely, or via a hybrid meeting with both a physical location and a remote option. Nonprofits do not need to amend their bylaws or articles of organization to allow for this change but may wish to adopt a policy or procedure, whether formally in the bylaws or AOO, or informally, stating that members who attend virtually are considered present for the meeting and may vote.
Massachusetts 401(k) CORE Plan
Specifically designed for small nonprofit organizations in Massachusetts, the Massachusetts Defined Contribution CORE Plan (“CORE Plan”) is a tax deferred and post-tax 401(k) savings plan that offers a streamlined and cost-effective means of providing top-tier benefits to nonprofit employees. The Commonwealth of Massachusetts acts as the Named Fiduciary and assumes the majority of legal responsibilities, taking the burden off participating employers. Backed by the Office of the State Treasurer, the CORE Plan offers administrative oversight, fiduciary support, and unique features like automatic enrollment and auto-escalation, promoting early savings and growth for employees. Organizations with 20 employees or less qualify.
MNN was a key partner in developing and advocating for this program, working closely with the State Treasurer’s Office. Because of this relationship, the CORE Plan offers a $500 discount off the start-up fee for eligible MNN members. To learn more, visit this page.
