Note:
The North Carolina Center
for
Nonprofits is publishing another extra
Nonprofit Policy Matters
newsletter this week to help your organization understand the latest federal and state policy developments that will help nonprofits respond to the COVID-19 crisis. The Center typically provides this newsletter as a benefit to its
nonprofit members
. However, to help nonprofits during the current crisis, the Center is providing this newsletter to all NC nonprofits.
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What does Governor Cooper’s stay-at-home order mean for nonprofits?
Join an online nonprofit town hall on Thursday
Center provides more input on state-specific COVID-19 relief solutions
Which new loan program is right for your nonprofit?
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What Does Governor Cooper’s Stay-at-Home Order Mean for Nonprofits?
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Join an Online Nonprofit Town Hall on Thursday
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To keep your nonprofit in the loop with the latest on new federal and state policies, loan programs, and resources the help nonprofits during the COVID-19 crisis, the Center is offering a free
nonprofit public policy discussion on Thursday, April 2 from 10:00-11:30 a.m. This webinar will include updates on the latest federal and state legislative and executive relief efforts to help nonprofits respond to the COVID-19 crisis. We will also facilitate an online discussion about the needs nonprofits have right now – both operationally and as service providers – and give a (quick) briefing on the state of North Carolina’s nonprofit sector and current (and future) public policy issues affecting nonprofits.
Register.
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Center Provides More Input on State-Specific COVID-19 Relief Solutions
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The NC House of Representatives COVID-19 Economic Support working group will have its second (virtual) meeting tomorrow. In advance of this meeting, the Center shared updated
suggestions for state policy solutions that could help North Carolina nonprofits respond to the COVID-19 pandemic. These suggestions have been updated to reflect some nonprofit-specific gaps in the unemployment insurance (UI) and charitable giving provisions in the CARES Act and information that nonprofits have shared with the Center about the need for greater flexibility with state grants and contracts. The Center continues to refine and expand these suggestions for legislators and the Governor as we get additional information about the specific needs of nonprofits and those they serve.
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CARES Act Provides Significant COVID-19 Relief for Nonprofits
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On Friday afternoon, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) into law. The CARES Act provides significant relief for nonprofits struggling through the COVID-19 crisis and for many of their employees and clients. Four provisions of the bill are of particular importance to charitable nonprofits:
- Most nonprofits with fewer than 500 employees will have access to forgivable small business loans to nonprofits with 500 or fewer employees that will allow them to cover the costs of payroll, operations, and debt service during the COVID-19 crisis. These loans, known as SBA 7(a) loans, will be forgiven for organizations that maintain their staff between March 1 and June 30, essentially turning them into grants.
- The bill includes significant unemployment relief for workers and (partially) for many nonprofits. Workers who lose their jobs for Coronavirus-related reasons – including employees of churches, religious nonprofits, and small charitable nonprofits (under four employees) – will be eligible for $600 per week of supplemental unemployment benefits (paid by the federal government). The federal government will also pay for half of the unemployment claims of self-insured nonprofits, leaving these organizations responsible for reimbursing states for the other half of these costs.
- Regardless of whether they itemize, taxpayers can use a (limited) universal charitable deduction for 2020, capped at $300 per year. The bill also strengthens incentives for businesses and high-income Americans to give more generously to support the work of nonprofits.
- To help preserve jobs and businesses, Congress included a wide variety of appropriations that will help many types of nonprofits.
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Which New Loan Program is Right for Your Nonprofit?
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The CARES Act provides three options for emergency loans for nonprofits:
- The forgivable emergency SBA 7(a) loan program for most nonprofits with 500 or fewer employees;
- The low-interest SBA Economic Injury Disaster Loan program (non-forgivable) that extends eligibility to many nonprofits with fewer than 500 employees; and
- The mid-sized loan program, which offers credits for larger nonprofits with between 500 and 10,000 employees.
To help your nonprofit understand which of these loan programs is the best option to help maintain your operations and payroll during the COVID-19 crisis, check out this
great comparison chart from the National Council of Nonprofits.
To keep up to date on these loan programs and a wide range of tools to help your nonprofit cope with the COVID-19 crisis, check out the Center’s ever-expanding
COVID-19 resource page.
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Nonprofit Policy Matters
is a service for current Members of the North Carolina Center
for
Nonprofits. We track state and federal policy issues that affect all 501(c)(3) nonprofits. Learn about the Center's
public policy priorities
. For more information, contact
David Heinen
, Vice President for Public Policy and Advocacy.
Your Center membership allows everyone within your organization - staff members, board members, and key volunteers - to set up their own online accounts to access the resources and benefits specific to their roles. Encourage everyone to
create an account
.
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