United Philanthropy Forum, the National Council of Nonprofits, and Independent Sector (IS) joined more than 50 nonprofit organizations in calling Congress to pass a $60 billion stimulus package to maintain nonprofit operations, expand scope to address increasing demands, and stabilize losses from closures throughout the country.
In a letter sent to Congress today, organizations asked for a package to specifically include the following policy solutions:
As is done in the Families First Coronavirus Response Act (H.R. 6201), any additional employment-focused relief or stimulus legislation must expressly apply to employment at tax-exempt organizations by making tax credits and deductions applicable not just to income taxes, but to the taxes nonprofits pay, such as payroll taxes. Further, Congress should also ensure that relief and stimulus legislation designed to assist for-profit businesses in the areas of unemployment insurance, employee retention, and risk insurance must also address the unique challenges and realities that nonprofits face.
America’s charitable nonprofits request $60 billion in emergency stimulus funding aimed at helping adversely affected national and local organizations. These funds can be distributed quickly through multiple funding streams, including, but not limited, to expansion of the Economic Injury Disaster Loan program for nonprofit employers, emergency grants to nonprofits operating under grants from federal, state, local, or other pass-through entities, and other to ensure the continued flow of charitable donations.
To incentivize all Americans to support the vital work of America’s charities, we call on Congress to enact an “above-the-line” or universal charitable deduction for contributions through the end of 2021. Further, to help those who step forward to help America’s charitable organizations immediately assist the most vulnerable, Congress should permit taxpayers to donate today – at the height of the pandemic – and claim the benefit from these deductions on 2019 tax returns.
Every charity in America, regardless of size, that provides paid family and medical leave should receive a tax credit the organization can use. We applaud the HR 6201 approach to provide a payroll tax credit to all employers of a certain size (including charities and other nonprofits) providing emergency paid family leave and sick time pay for care related to the coronavirus. Congress should provide payroll tax credits to all charities, regardless of size, that provide such paid family leave and sick time pay as a result of the coronavirus.
If your organization would like to sign in support of this letter, please email dthompson@councilofnonprofits.org.
Read more about IS’s response and resources from President and CEO Dan Cardinali.