Nonprofit Policy Updates

Policy Updates
 
Main Street Lending Program
The Main Street Lending Program, administered by the Federal Reserve, is now accepting submission of eligible loans to nonprofit organizations, submitted through the Main Street lender portal by registered lenders. This program is designed to help credit flow to small- and medium-sized nonprofit organizations that were in sound financial condition prior to the pandemic. Read the press release.
 
Find loan information, including criteria, a list of lenders and frequently asked questions on the Nonprofit Borrower Information page.
 
Employee Payroll Tax Deferral – Nonprofit Caution
On September 1 the president’s Executive Order, Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster, went into effect. Under the order, organizations can defer the employee portion of Social Security payroll taxes for individuals.
 
On August 28, the IRS released guidance providing key details on employee eligibility, the repayment period, and employer responsibilities. But the guidance leaves some questions unanswered, and deferral could put staff with an undue burden of paying those taxes out of pocket next April, while exposing employers to liability.
 
Several agencies have released analysis of the action warning nonprofit organizations to be cautious as they navigate the memorandum. After considering the implementation cost and risk associated with repayment, employers should consult their liability carrier before making a decision about payroll tax deferral. Employers should also clearly communicate their policy and help employees make prudent financial decisions.

• New Guidance Issued on President Trump’s Payroll Deferral Tax Order – BKD CPAs & Advisors
• Focus on Not-For-Profits: Deferral of Withholding and Payment of the Employee Share of the Social Security Tax - RubinBrown

 
Upcoming Deadlines
 
National Voter Registration Day – September 22
Are you ready to vote, and are the communities you serve ready to vote? The 2020 election is less than 50 days away.
 
The National Council of Nonprofits is inviting nonprofit participation in National Voter Registration Day on September 22. Your organization can access sample press releases, ready-made social media posts and best practices to encourage your constituents to vote.

• Sign up to be a National Voter Registration Day Partner.

 
The End of the 2020 Census – September 30
The Census Bureau will end data collection at the end of this month, and nonprofits are encouraged to make sure all our residents are counted. The census affects an estimated $1.5 trillion in annual spending, as well as determines how our communities are represented on the federal level. Nonprofit organizations are uniquely positioned to engage and advocate, but we now have less than a month to do this work. What can your organization do to help?
 
City and state agencies are providing resources for local organizations, including social media posts, videos and other outreach materials.

• Kansas City: Count Me In KC
• Missouri: Missouri Counts Media Kit
• Kansas: Kansas Counts Resources

In addition, the Census Bureau has developed a modified COVID-19 response plan for hard-to-count communities and sites where response rates have been lowest. Mid-America Regional Council is looking for community-based organizations to be part of the Mobile Questionnaire Assistance initiative. The best organizations to participate will be those that offer mobile food pantry resources or other services that draw a lot of people to your locations. Learn more here.
 
Advocacy Opportunities
 
Extending the Census Deadline
Last month, the U.S. Department of Commerce abandoned its request to Congress to push back the 2020 Census deadlines, forcing the Census Bureau to rush through remaining counting operations. In response, many agencies are advocating that the date be extended another month.

• The Census Project Letter
• Nonprofit Quarterly – Census Cut Short in a Blow to Democracy

 
Spurring Congressional Action - #Relief4Charities
Many national organizations are in Washington D.C. are working tirelessly to advocate for the nonprofit sector. The lull in congressional action has prompted a series of letters and blog posts urging nonprofits around the country to use their voice and demand a response.

• Urgent Nonprofit Priorities Letter – National Council of Nonprofits
• The economic solutions for this coronavirus crisis are available – The Hill
• Where the latest COVID-19 Update Leaves Us – Independent Sector
•  It’s Now or Never – Nonprofit Quarterly

To learn more about Nonprofit Connect's advocacy education efforts, please visit our Advocacy resources page. To receive policy updates like this in your inbox, sign up for our Advocacy mailing list.