Policy Alert: Next COVID-19 Stimulus Bill Could Help Nonprofits - What You Can Do
Next Coronavirus Stimulus Bill Could Help Nonprofits
The federal response to COVID-19 has unrolled in three phases. Phase 1 was the supplemental appropriations bill which has become law. Phase 2, the Families First Coronavirus Response, has also been passed into law. Phase 3 will hopefully provide broader economic stimulus designed to help individuals and industries like nonprofits weather the downturn.
This next stimulus bill from Congress may be enacted as soon as this coming Monday, March 23. The latest draft includes support for charitable organizations, but nonprofits across the nation are asking for more.
The National Council of Nonprofits recently sent a letter to Congress with policy solutions that would address the immediate needs of organizations and the people they serve, with the signatures of hundreds of national organizations. The policy solutions include expanding the charitable giving deduction and providing organizations with grants, loans, and tax credits.
What Can You Do
If you believe that the government needs to increase the amount of emergency aid to nonprofit organizations in this stimulus bill, you can reach out to your Senators and Representatives as soon as possible.
We recommend writing your request in an email or tweet, as phones won’t be answered since offices are closed due to COVID-19.
The National Council of Nonprofits recommends asking for:
- Expressly include charitable nonprofits in the $200 billion loan fund for businesses, including airlines. The charitable sector needs an immediate infusion of $60 billion and the loan program is a fast way to get cash in the hands of organizations serving immediate needs in communities, yet facing lost and declining revenue due to the pandemic.
- Improve the above-the-line charitable deduction by raising the cap to $2,000 and allowing all taxpayers to immediately claim the deduction on their 2019 taxes (due on July 15), and afterwards through 2021.
- Clarify that charitable nonprofits of all sizes are able to participate in the emergency Small Business Loan Program by using the tax-law definition of charitable organizations (Sec. 501(c)(3) public charities) and removing the language that excludes nonprofits that are eligible to receive Medicaid reimbursements.
Ultimately, tell your story and communicate what the pandemic is doing to your organization’s ability to serve your congressperson’s constituents.
We will continue to update you with more information as it becomes available. In the meantime, make sure you are checking out our Coronavirus Resources for Kansas City Nonprofits.
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