April 20, 2018

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Advocacy & Policy
Strategic Thinking
Professional Development
News & Notes
Volunteer Spotlight
Value First

Advocacy & Policy

Legislative Study Committee Considers Tax Changes Affecting Nonprofits
Last week, the North Carolina General Assembly’s Revenue Laws Study Committee reviewed a proposed bill to make various changes to state tax laws. Several of the changes (or lack thereof) could affect nonprofits. These include:
  1. A new state tax on nonprofits that provide transportation, parking, and on-site gym benefits to their employees. An under-the-radar provision in the federal "Tax Cuts and Jobs Act" that was passed and signed into law last December imposes a new tax on nonprofits that provide these fringe benefits to their employees. This new federal tax applies to parking, transportation, and on-site gym benefits provided beginning on January 1, 2018. By conforming to this new federal law, the proposed state tax legislation would require nonprofits that offer these fringe benefits to include them as unrelated business income on their state taxes and pay 3% corporate income tax to the state (in addition to a 21% tax they will need to pay to the federal government).

    2. Small changes to exemptions from the sales tax on admission fees to entertainment and live events. The proposal would expressly exempt charges for certain participatory activities - such as zip-lining, skating, skiing, rock climbing, and riding on boats, trains, horses, or chairlifts - from sales tax. However, the current version of the bill does not expressly exempt nonprofits from collecting and remitting sales tax on admission fees for fundraising events.

    3. No new state tax incentives for charitable giving. The tax changes in the "Tax Cuts and Jobs Act" are expected to reduce charitable giving by between 4% and 6.5% per year. To offset this expected reduction in donations to nonprofits, Congress and some other state legislatures have considered establishing a universal, non-itemizer deduction for charitable contributions.

    4. No substantive changes to nonprofit tax exemption. While the draft bill would make a technical change to the way nonprofit charter schools file for property tax exemption, it (thankfully!) does not include proposals for new taxes on nonprofits.

Long-Term Care Survey Process Q&A
The Centers for Medicare & Medicaid Services has provided questions and answers related to the new Long Term Care Survey Process. The surveyors will be making observations as they are completing their initial resident sample interviews. CMS has provided a response and clarification to this issue in a Q&A document.

U.S. Supreme Court Broadens Interpretation of FLSA Overtime Exemptions
The U.S. Supreme Court recently issued a ruling that found that exemptions from the overtime requirements under the Fair Labor Standards Act (FLSA) should be interpreted "fairly" rather than "narrowly." While the case involved a car dealership, the court's ruling applies to all employers, meaning that nonprofits may have greater leeway in classifying their employees as executive, professional,
or administrative workers who are exempt from FLSA's requirement of providing overtime pay.

Generally, FLSA requires employers to pay workers one-and-one-half times their usual rate of pay when they work more than 40 hours in a week. Employees are exempt from this requirement if they: (1) are paid on a salary basis; (2) are paid at least $455 per week ($23,660 per year); and (3) meet the duties test as an executive, administrative, or professional employee. The Supreme Court's latest ruling means that it will be easier for nonprofits to make the case that their employees meet one of these duties tests.

Congressional Committee Approves Bill to Require Electronic Filing of Form 990
A congressional subcommittee last week approved a series of bipartisan bills to restructure the Internal Revenue Service. Two of these bills are of particular importance for tax-exempt nonprofits:

  1. A proposal (H.R. 5443) to require tax-exempt organizations to file Form 990 electronically and to make information from 990s more easily available to the public. The legislation includes a two-year hardship delay for smaller nonprofits. In its comments to the committee in support of the bill, the National Council of Nonprofits noted that "mandatory electronic filing of Form 990s and other forms will likely improve accuracy and timeliness, thereby protecting public trust in the integrity of charitable nonprofits. The related provision directing the U.S. Treasury to make that information available to the public in machine-readable format will promote transparency, which is essential for continuing trust."

    2. A bill (H.R. 2901) to make permanent the Volunteer Income Tax Assistance (VITA) program. United Ways and many other nonprofits participate in this program, which provides free tax assistance to low-income taxpayers and people with disabilities.

DHHS Releases New Papers on Medicaid Managed Care
For the last several months, the NC Department of Health and Human Services has released Medicaid managed care concept papers which focus on specific subjects related to the proposed Medicaid and NC Health Choice managed care program design. On April 5, two concept papers that may be of particular interest to aging advocates were released. These are "North Carolina's Vision for Long-Term Services and Supports Under Managed Care" and "Using Social Determinants of Health Screening Questions to Identify and Assist Patients with Unmet Health-Related Resource Needs in North Carolina." A copy of these papers can be found by clicking here. Although these technical papers are primarily written for providers and health plans that want to participate directly in Medicaid managed care, aging advocates may wish to comment. Comments can be sent to Medicaid.Transformation@dhhs.nc.gov. The deadline for submitting comments on both papers is April 27.

Growing Federal Deficit Could Cause Congress to Revisit Spending Cuts
A new Congressional Budget Office report estimates that, largely because of the recently-enacted Tax Cuts and Jobs Act and omnibus spending bill, the federal deficit is projected to exceed $1 trillion annually, starting in 2020. In light of the growing national debt, politicians in Washington are looking for ways to cut federal spending. These spending cuts would likely include steep reductions to many programs that are important to the work of nonprofits.

Congress is contemplating two proposals to cut federal spending:

  1. The U.S. House of Representatives voted on a Balanced Budget Amendment (H.J.Res. 2) that would amend the U.S. Constitution to require a supermajority vote in both houses of Congress to approve a federal budget that spends more money than the total amount of revenue collected. The bill didn't receive the two-thirds support in the House that would be needed to send it to the Senate.

  2. President Trump and some leaders in the U.S. House of Representatives have discussed the possibility of rescinding some of the domestic spending increases in the omnibus bill that Congress passed last month. While it may be politically challenging for Congress to pass a rescission bill, it could technically rescind parts of the bipartisan spending package with a party-line vote.

Thank Congressional Champions for Increased Federal Investments in Affordable Housing
In March, Congress passed a 10% increase to federal housing programs for fiscal year 2018, including funds for Section 202 Housing for the Elderly new construction, increased funding for Service Coordinators, and RAD for PRAC authority. Now it’s our turn to say, “thank you!” Click here to share your appreciation with your elected officials in a quick and easy fashion.

Strategic Thinking

Firearms Policies in Aging Services Organizations
In the wake of recent mass shootings, LeadingAge has received many inquiries from member organizations regarding senior living communities' authority to institute weapons policies on their campuses. Click here for the latest information from LeadingAge national on this issue critical to you and the people you serve.

Would Americans Accept Putting Health Care on a Budget?
If you wanted to get control of your household spending, you’d set a budget and spend no more than it allowed. You might wonder why we don’t just do the same for spending on American health care. This thought-provoking New York Times article examines the nuances of this concept.

Responses to Member Question re: Housekeeping

How do your colleagues around the state schedule their campus housekeeping services? Be sure to click here to download an Excel spreadsheet that lists responses to the member question on this topic. Thanks so much to everyone who helps sustain this member service by taking time to respond!

Professional Development

2018 Spring Conference and Trade Show
The Omni Grove Park Inn
May 14-17, 2018
Register Now!

IMPORTANT message about rooms at The Omni Grove Park Inn

Our conference block is full and the April 13 cut off date for reservations has passed. However, you are encouraged to try to book at the resort first as numbers can change daily due to cancellations and reservation modifications. While we have always been able to fill the block in the past, this is the first time it has filled so quickly. If you need to cancel a room, please contact Leslie Roseboro prior to contacting The Omni Grove Park Inn. By doing so, we can give that available to room to another attendee.

A block of rooms is also available at the Renaissance Asheville Hotel located at 31 Woodfin Street, Asheville (approximately 15 minutes away). Contact the hotel directly at 828-252-8211 and request the LeadingAge NC rate of $169/night.

If you have any questions, please don't hesitate to contact the LeadingAge NC office at 919-571-8333.

See you next month!

Town Hall Conversation
Monday, May 14
The Omni Grove Park Inn Asheville

Register Here

We hope you’ll make plans to join us for our first annual LeadingAge NC Town Hall Conversation. This is your opportunity to provide input about ways national public policy is affecting you, the older adults you serve, and how policy could be changed for the better. NOTE: While this is being held in conjunction with our annual conference, it is free and open to those who are not attending the conference.

NEW! Lunch and Learn

The Times They Are A-Changin':
Navigating the paradigm shift in third party reimbursement

Monday, June 11
Salemtowne, Winston-Salem
Presented by Functional Pathways

This workshop is for you - administrators, DONs, CFOs, controllers, and other interested long-term care provider professionals! Join us over lunch and discuss how to strategize for your community around the paradigm shift in third party reimbursement from Medicare Advantage programs, bundled payment initiatives, accountable care organizations and proposed PPS reform. Download flyer.  Register now.

Save the Date!
Finance Symposium

July 26
Springmoor in Raleigh
More information coming soon. Watch our website, social media, and your inbox in the coming weeks.

Management Leadership Series 2018
Member reviews from session one,

  • "I truly benefited from this program. So much applicable info. Thank you!"
  • "This was a blessing (awesome presenter). I am most grateful for this knowledge."
  • "Rich is fantastic! He has an excellent mix of humor and truly worthwhile information and guidance."

Reserve your spot for the last session!

August 15, 2018
WhiteStone in Greensboro
Facilitated by Rick Schlentz of EXTRA!Ordinary, Inc.

Members: $125
Non-members: $175
4.0 NHA CEUs

Department directors, team leaders, supervisors, and mid managers - would you like a fresh perspective and new ideas about how to engage your team? Plan to join us and learn more about what it takes to create an effective team in this last session of the series. You are welcome to register even if you did not attend the first session. Register online. Download brochure.

Download 2018 Event and Education Calendar

Please click here to view and print LeadingAge North Carolina's 2018 Event and Education Calendar for yourself and your staff.  Be sure to reserve time to learn and refresh yourself at one or more LeadingAge North Carolina events this year. We look forward to seeing you!

Advance Care Planning Workshops in April
North Carolina Partnership for Compassionate Care

The North Carolina Bar Association, NC Partnership for Compassionate Care, Community Partners and local attorneys are partnering to provide information and tools for the public to talk about their wishes with family, friends and health care providers, and to execute written advance directives (Health Care Power of Attorney and living will) in accordance with North Carolina state laws. For a list of Advance Care Planning Workshops across North Carolina this month, please click here.

News and Notes

Remember to Incorporate Fair Housing Into Staff Training
2018 marks the 50th anniversary of the Fair Housing Act. Training staff and volunteers in fair housing may help prevent avoidable fair housing complaints being filed against you. Here are some low-cost (or no-cost) suggestions to keep on top of issues.

Advance Your Leadership Capacity  *Deadline Extended to May 1!

The LeadingAge national Larry Minnix Leadership Academy is a leadership development program designed to strengthen the core competencies of nonprofit leaders in aging services, at all levels and across the spectrum of providers within the LeadingAge membership. The year-long, graduate-level program consists of 5 face-to-face meetings, monthly virtual gatherings, and project-based learning.

Take the first step in discovering your fullest leadership potential and be part of this transformative experience. Deadline for applications has been extended to May 1, 2018. Join the more than 25 individuals from North Carolina who have already completed the year-long academy experience by applying today. Learn more and apply today.

LeadingAge National Awards
The 2018 national LeadingAge Awards Call for Submissions is now open. The LeadingAge Annual Awards honor LeadingAge member organizations and individuals that embody excellence in nonprofit aging services. Deadline for submissions is April 30, 2018.

Long Term and Post Acute Health IT Summit
LeadingAge CAST is convening this year's long-term and post-acute (LTPAC) Health IT Summit, themed Technology Connecting the Healthcare Eco-System. The event will take place June 24-26, 2018 at the Washington Hilton. It will bring LTPAC providers together with acute care providers, payers, health IT vendors, health information exchange intermediaries, consultants, system integrators, and solution providers with a shared goal—to discuss how technology is connecting the healthcare ecosystem in the era of health and payment reforms. LeadingAge North Carolina members can use Coupon Code LA_CAST18 to get $100 off the registration fee. To learn more please click here. Register here.

Register Today for a North Carolina Center for Nonprofits Town Hall Meeting
Join the Center and their partners across the state (including LeadingAge North Carolina) for the 2018 Nonprofit Town Hall series. These town halls will include briefings on nonprofit sector public policy issues and trends in North Carolina's nonprofit sector. They will also offer nonprofit board and staff an opportunity to discuss hot topics in the nonprofit sector and talk about ways that we can all work together on public policy issues affecting our communities.
Register for an upcoming Town Hall in your region:
High Point: April 27 from 9:00-11:00 a.m.
Wilmington: April 30 from 1:30-3:30 p.m.
Washington: May 7 from 2-4 p.m.

Volunteer Spotlight

Mark Kolada
LeadingAge NC Board Member

Board members of LeadingAge North Carolina are leaders of our nonprofit membership and volunteers who offer their time and expertise with the sole purpose of enriching the field of aging services. Thanks to Mark Kolada, Director of Operations Management for Life Care Services and Executive Director of WhiteStone in Greensboro, for his service to the board since 2016. We are so glad to get to know you better through this new monthly Volunteer Spotlight.

1. Why did you become involved in LeadingAge North Carolina?
Leading Age NC is such a strong organization that has brought tremendous value to our communities and the residents we serve. The advocacy they do on our behalf is priceless. I felt an obligation to get involved and give back.

2. What makes our mission meaningful to you?
It’s the success of our communities and thus our ability to serve others.

3. If you had unlimited resources, what is the one thing you as a board member would like to do for the population we serve?

I would like to see more progress made on affordable senior housing. There is a significant gap in available options in North Carolina. While improving access to community based services will help to keep people in their own homes, the value and social connectedness of living in a tight knit community, whether it is a Life Plan community or subsidized senior housing is unmatched.

4. If you could swap jobs with a staff member for a day, what would you want to try and why?
Who doesn’t want to be Tom Akins for a day! I think we are very blessed as an organization to have Tom as our leader and it would be great to walk in his shoes and see how he gets it all done.

5. What do you do to relax, to get away, and to recharge your batteries?

For me nothing is better than a long bike ride to clear the mind and hit the reset button. Whether it is near my home in Greensboro or someplace new on our many travels through the years (Maine, Adirondacks, Siesta Key, Gatlinburg to name a few) it’s a blessing to hit the open road.


Congratulations and thanks to everyone who came out to Glenaire in Cary on April 7 for the Glenaire 5K and 1 Mile Fun Run. Almost 400 people registered and about 250 participated early on a rainy day. Glenaire raised $29,000 in sponsorships and all net proceeds will go to residents financial assistance. Mark your calendar for April 6, 2019 for the 3rd annual.

A group purchasing organization of LeadingAge and its State Affiliates.

Medical Waste Cut in Half with Sharps

Sharps Compliance offers systems to better accommodate the medical waste, used healthcare material and unused medication disposal needs for senior care communities.

Sharps Recovery System™ or TakeAway Recovery System™.

Includes everything needed to collect medical waste and used healthcare materials for transport through USPS or UPS for proper treatment and repurposing. These systems include a collection container, shipping box, packaging, tracking manifest, instructions, pre-paid return, and proper treatment and repurposing.

Recovery System Advantages:
o Reduces costs by as much as 50% or more
o Is proven, convenient, and easy to use
o Offers online tracking and proof of treatment confirmation via SharpsTracer®
o Eliminates monthly fees– purchase as needed

For more information, contact:

Vanessa Ceasar
North Carolina Value 1st Representative
vceasar@leadingagega.org | P: 404-421-3956 | F: 404-872-1737