Yesterday, the White House released a national strategy for COVID-19 response and pandemic preparedness. Among other things, the national strategy focuses on:

The national strategy makes clear that community-based nonprofits are an essential part of the solution to the COVID-19 crisis. Nonprofits are trusted messengers, and many North Carolinians are more likely to take important public health actions if the message comes from a familiar nonprofit organization rather than a government official. Your nonprofit can make a big difference in fighting the pandemic by spreading the word about the importance of taking necessary steps to protect the public health.

Here are two things your nonprofit can do today to help in the fight against COVID-19:

The rate of vaccinations is likely to increase now that there is a coordinated national COVID-19 plan in place. The Center will continue to provide nonprofits with the latest information about vaccines so that your nonprofit can continue to provide clear and accurate messaging to your employees, volunteers, and community.

Last week, President Joe Biden released a framework for his comprehensive plan to address the COVID-19 crisis. His $1.9 trillion plan, which would require congressional approval, includes:

The U.S. House of Representatives is planning to vote on the next COVID-19 relief bill by early February.

The 19-page framework does not provide details on whether the plan would address some of nonprofits’ ongoing needs, including expansion of the temporary universal charitable deduction and extension and expansion of the partial federal forgiveness of unemployment expenses for reimbursing nonprofits. The Center will continue to work with our national partners to advocate for Congress and the White House to include nonprofit priorities in the next COVID-19 relief bill. Look for additional calls to action in the coming weeks.

On Wednesday, President Biden revoked Executive Order 13950 that sought to undermine workplace trainings on equity, diversity, and inclusion. Federal agencies that issued contracts or grant agreements with limits on workplace trainings under the now-revoked executive order have 60 days to review their policies and make changes to the terms of these contracts or grants. The revocation was part of a broader executive order on advancing racial equity and support for underserved communities through the federal government. The new executive order also encourages federal agencies to work more closely with community-based nonprofits working in underserved communities. As a result of the new executive order, most nonprofits with federal grants or contracts should be able to resume all workplace trainings on topics related to race and gender equity, diversity, and inclusion without any fear of repercussions from the federal government.

Next Wednesday, the NC General Assembly will return to Raleigh to begin considering legislation for its 2021-22 session. Typically, hundreds of bills are introduced in the first few weeks of legislative business, but the House and the Senate usually don’t vote on many bills during the opening weeks of a session. This year, however, legislators are expected to pass COVID-19 relief measures and other bipartisan legislation soon after they start their work.

Over the next several months, legislators will likely consider dozens of proposals that could affect nonprofits, including many of the policy solutions on COVID-19 relief, tax policy, government grants and contracts with nonprofits, and nonprofit operations that are included in the 2021 Public Policy Agenda for North Carolina’s Nonprofit Sector. The Center advocates on policy issues that affect all or most 501(c)(3) nonprofits in North Carolina and plans to offer webinars on public policy issues affecting nonprofits later this winter and/or spring.

Nonprofit employment declined by 5.8% in December 2020 (compared to November 2020) as the COVID-19 pandemic worsened, according to a new report from the Center for Civil Society Studies at Johns Hopkins University. The report found that nonprofits lost more than 50,000 jobs nationally last month. Overall, nonprofit employment is down by 7.4% since the beginning of the pandemic. Prior to the pandemic, nonprofits provided about 360,000 jobs in North Carolina, accounting for about 10% of the state’s private sector workforce. Arts and educational nonprofits have sustained the greatest job losses during the pandemic.

The continuing decline in nonprofit employment highlights the need for more federal and state investment in the sustainability of nonprofits through additional emergency grants and forgivable loans. The Center continues to advocate for Congress and the state legislature to help protect and restore jobs in the nonprofit sector during and after the pandemic.

The COVID-19 relief bill that Congress passed late last month creates new opportunities for nonprofits that did not previously receive a Paycheck Protection Program (PPP) loan to apply for a first-draw loan and for nonprofits that already received a PPP loan to apply for a second-draw loan if they have fewer than 300 employees and had a decline in gross receipts (as calculated for Form 990) of at least 25% in any calendar quarter of 2020 (relative to the same quarter in 2019).

On Tuesday, the SBA opened the application for first-draw and second-draw PPP loans to all lenders. Nonprofits applying for the PPP for the first time can use Form 2483. Nonprofits applying for second-draw PPP loans can use Form 2483 SD. The SBA has posted a variety of information and guidance on PPP loans and is expected to continue updating it in the coming weeks. The deadline to apply for PPP loans is March 31, 2021.

For more information about changes to the PPP and other parts of the recently-passed COVID-19 relief legislation, check out the Center’s analysis of provisions affecting nonprofits and a recording of the recent Nonprofit Town Hall briefing from the National Council of Nonprofits.

Nonprofits that paid individuals $600 or more as independent contractors in 2020 must file the new IRS Form 1099-NEC with the IRS and with these contractors by February 1. In the past, nonprofits used IRS Form 1099-MISC to report non-employee compensation to contractors. For 2020, nonprofits should still use Form 1099-MISC to report compensation of $600 or more paid to attorneys and for raffle prizes of $600 or more. The Form 1099-MISC is also due by February 1. Note: In last week’s policy update, we erroneously referred to the wrong form number for IRS Form 1099-MISC.

Nonprofits that were registered as lobbyist principals in 2020 (and their staff or contractors who were registered as lobbyists) must file their final quarterly reports with the Secretary of State Lobbying Compliance Division by next Monday, January 25, 2021. Lobbyist principals need to use the special fourth quarter expense reports (now available online) that include the cumulative total payments to lobbyists for their salaries and fees reasonably allocated for lobbying. To help you understand the basics of state lobbying laws affecting nonprofits, check out the Center's summary of NC lobbying laws for nonprofits.

Also, the NC Secretary of State has opened lobbying registration for 2021. Lobbyist principals (i.e. nonprofits that lobby) and lobbyists (i.e. nonprofit employees and contractors who lobby on behalf of nonprofits) must register annually with the Secretary of State.

On Wednesday, President Biden issued an executive order ensuring that the full Census count will be used in apportioning the 435 seats in the U.S. House of Representatives among the states. The new executive order rescinds an action from the previous administration that would have excluded undocumented immigrants from this count. The full Census count – including both citizens and undocumented immigrants – has been used for congressional apportionment for more than two centuries. North Carolina is likely to gain a 14^th seat in the U.S. House in 2021 (we currently have 13) if the full Census count is used for this apportionment.