North Carolina SB 684: Put Money to Work in Communities Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 684

Short Title: Put Money to Work in Communities Act. (Public)
Sponsors: Senators Chitlik, Lowe, and Bradley (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S684-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ENACT THE PUT MONEY TO WORK IN COMMUNITIES ACT TO 2
INCREASE AND INCENTIVIZE PHILANTHROPIC INVESTMENT IN ALL 100 3
COUNTIES BY PROVIDING A TAX CREDIT FOR CHARITABLE GIFTS BY 4
TAXPAYERS TO ENDOWED FUNDS OF COMMUNITY FOUNDATIONS. 5
The General Assembly of North Carolina enacts: 6
SECTION 1. Part 1 of Article 4 of Chapter 105 of the General Statutes is amended 7
by adding a new section to read: 8
"§ 105-130.34A. Credit to endow qualified community foundations. 9
(a) Purpose, Definitions. – The purpose of this section is to promote philanthropic 10
investments in local community development programs and activities and to enhance the quality 11
of life for residents of the State by providing a tax credit for charitable gifts made by taxpayers 12
to endowed funds held by community foundations in North Carolina. The following definitions 13
apply in this section: 14
(1) Endowed fund. – A fund, including donor-advised funds, community 15
foundation affiliate funds, field-of-interest funds, agency funds, and 16
designated organizational funds, held by a qualified community foundation 17
that (i) benefits charitable causes in the State and (ii) is intended to exist in 18
perpetuity. 19
(2) Endowment gift. – An irrevocable contribution to an endowed fund held by a 20
qualified community foundation. 21
(3) Qualified community foundation. – An entity exempt from federal income 22
taxation under section 501(c) of the Code that meets all of the following 23
requirements: 24
a. It is organized by articles of incorporation in this State to serve the 25
State, one or more counties or municipalities in the State, or both. 26
b. It is comprised of permanent, component funds established by multiple 27
separate donors for the purpose of supporting broad-based charitable 28
interests that solely benefit some or all of the residents of the State. 29
Support, as required in this sub-subdivision, means providing grants 30
to at least two unaffiliated, tax-exempt organizations. 31
c. The board of directors is comprised of community representatives and 32
independent from another entity. 33
d. It complies with the guidelines established by the Department, 34
including compliance with reporting, data privacy, and certification. 35

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 684-First Edition
(4) Qualified contribution. – An endowment gift to a qualified community 1
foundation for an endowed fund that qualifies as a charitable gift under section 2
170(c) of the Code. 3
(b) Credit. – Subject to the limitations in this section, a C Corporation that makes a 4
qualified contribution of at least one thousand dollars ($1,000) to an endowed fund of a qualified 5
community foundation during the taxable year is allowed a credit against the tax imposed by this 6
Part equal to twenty-five percent (25%) of the qualified contribution. The aggregate amount of 7
credit allowed to a corporation in a taxable year under this section for one or more qualified 8
donations made during the taxable year, whether made directly or indirectly as an owner of a 9
pass-through entity, may not exceed fifty thousand dollars ($50,000). The credit may not be taken 10
for the year in which the donation is made but may be taken for the taxable year beginning during 11
the calendar year in which the application for the credit becomes effective as provided in 12
subsection (c) of this section. 13
(c) Application. – To claim the credit provided in this section, a corporation must file an 14
application with the Secretary for the credit. The application must be filed on or before April 15 15
of the year following the calendar year in which the qualified contribution was made. An 16
application is effective for the year in which it is timely filed. The Secretary may not accept late 17
applications under this subsection. The application must be on a form prescribed by the Secretary 18
and include any information required by the Secretary demonstrating that the qualified 19
contribution has met the conditions for the credit 20
(d) Substantiation. – A corporation claiming a credit under this section must maintain and 21
make available for inspection by the Secretary any records the Secretary considers necessary to 22
determine and verify the amount of the credit to which the corporation is entitled. The burden of 23
proving eligibility for the credit and the amount of the credit rests upon the corporation, and no 24
credit may be allowed to a corporation that fails to maintain adequate records or to make them 25
available for inspection. 26
(e) Ceiling; Use Allocation. – The total aggregate amount of all credits allowed to 27
taxpayers under this section an