A new bill filed by State Rep. Rhyne seeks to modernize North Carolina’s nonprofit corporation laws to improve compliance and oversight processes, according to the North Carolina State House.
The bill, filed as HB 517 on March 25 during the 2025 regular session, was formally listed with the short title: ‘Modify Nonprofit Corp. Act/Charitable Org.’
The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.
In essence, this bill introduces several modifications to the North Carolina Nonprofit Corporations Act, including changing standards related to mergers and sales of assets for charitable organizations, with specific approval processes involving the Attorney General and courts for certain mergers. A key feature allows annual report submissions to the Secretary of State in electronic form, aligning state nonprofit reporting requirements with federal standards for charitable organizations. Effective October 1, 2025, the bill permits the domestication of nonprofit corporations, allowing nonprofits to change their jurisdiction of incorporation under specified conditions. It also authorizes nonprofit corporations to convert into other entity forms, such as LLCs, and clarifies rules on the required number of directors and board committee formations. These changes aim to streamline nonprofit compliance and governance processes while maintaining oversight and transparency.
A related bill, SB 489, was also filed in the North Carolina Senate, introduced by Sen. Benton G. Sawrey on March 25, 2025.
Of the four sponsors of this bill, Allen Chesser proposed the most bills (24) during the 2025 regular session.
Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.
You can read more about the bills and other measures here.
Rhyne graduated from the University of North Carolina at Chapel Hill in 1998.
Rhyne, a Republican, was elected to the North Carolina State House in 2024 to represent the state’s 97th House district, replacing previous state representative Jason Saine.
| Authors | Bill Number | Date Filed | Title |
|---|---|---|---|
| Heather H. Rhyne, Allen Chesser, Brandon Lofton, and Kyle Hall | HB 517 | 03/25/2025 | Modify Nonprofit Corp. Act/Charitable Org. |
| Heather H. Rhyne, Dennis Riddell, Erin Paré, and Monika Johnson-Hostler | HB 488 | 03/24/2025 | Modify School Performance Grades. |
| Heather H. Rhyne, Donna McDowell White, Donny Lambeth, and Jimmy Dixon | HB 491 | 03/24/2025 | Medicaid Work Requirements. |
| Heather H. Rhyne, Allen Chesser, and Ray Pickett | HB 437 | 03/18/2025 | Establish Drug-Free Homeless Service Zones. |
| Heather H. Rhyne, Dean Arp, Donny Lambeth, and Erin Paré | HB 412 | 03/17/2025 | Child Care Regulatory Reforms. |
| Heather H. Rhyne, Brian Biggs, and David Willis | HB 415 | 03/17/2025 | Modify Math & Social Studies Grad. Req. |
| Heather H. Rhyne, Allen Chesser, Jake Johnson, and Mike Schietzelt | HB 372 | 03/11/2025 | Home-Based Business Fairness Act. |
| Heather H. Rhyne, Allen Chesser, Cody Huneycutt, and Kyle Hall | HB 351 | 03/10/2025 | Recovery-Friendly Workplace Program/Funds. |
| Heather H. Rhyne, A. Reece Pyrtle, Jr., Charles W. Miller, and Cody Huneycutt | HB 330 | 03/06/2025 | Controlled Substances Act – Updates. |
| Heather H. Rhyne, Dean Arp, Donny Lambeth, and Erin Paré | HB 309 | 03/05/2025 | Various Local Provisions VI. |
| Heather H. Rhyne, Howard Penny, Jr., Jonathan L. Almond, and Paul Scott | HB 239 | 02/26/2025 | Change to EC Funding Formula. |
| Heather H. Rhyne and Jeffrey C. McNeely | HB 190 | 02/24/2025 | SchCal Mandatory Winter Break/Date Adjustment. |
| Heather H. Rhyne, Cody Huneycutt, Hugh Blackwell, and Jarrod Lowery | HB 163 | 02/21/2025 | Pharmacy Benefits Manager Provisions. |
| Heather H. Rhyne, Allen Buansi, Grant L. Campbell, MD, and Jarrod Lowery | HB 145 | 02/17/2025 | Funds for Diabetes Research Institute/UNC-CH. |
| Heather H. Rhyne, Allen Chesser, Brenden H. Jones, and Jay Adams | HB 35 | 02/03/2025 | Establish Military Appreciation Month. |
| Heather H. Rhyne | HB 41 | 02/03/2025 | Lincoln/Catawba Common Boundary Line. |
