Yesterday, President Joe Biden signed the American Rescue Plan Act of 2021 (H.R. 1319) into law. The U.S. Senate passed the $1.9 trillion COVID relief package last Saturday, and the U.S. House of Representatives gave it final approval on Wednesday. Some highlights of the American Rescue Plan Act for nonprofits include:

Many of these important provisions are included in the American Rescue Plan Act because of the persistent advocacy of nonprofits. To learn more about the ways the American Rescue Plan Act will help nonprofits and the communities they serve – and additional relief that nonprofit organizations are seeking from Congress and state legislators – join the Center for a nonprofit policy briefing next Monday, March 15 at 11 a.m. Register today.

On Tuesday, a bipartisan group of members of Congress introduced the Universal Giving Pandemic Response and Recovery Act in the U.S. Senate (S.618) and U.S. House of Representatives (H.R. 1704). Under current law, taxpayers who use the standard deduction are eligible for the universal charitable deduction, which applies to the first $300 in cash donations for individual taxpayers and the first $600 for married couples filing jointly for 2021 (last year, the deduction was capped at $300 for both individual taxpayers and for married couples filing jointly). The Universal Giving Pandemic Response and Recovery Act would expand and extend the current deduction for charitable giving by allowing taxpayers who use the standard deduction to also take a deduction for their charitable giving up to one-third of the standard deduction level (around $4,000 for individuals and $8,000 for married couples filing jointly) in 2021 and 2022. It is possible that Congress could take up the bill on its own or include it in a larger piece of tax legislation later this year.

The Center strongly supports the Universal Giving Pandemic Response and Relief Act, and we are encouraging North Carolina’s members of Congress to support it. We are also asking state legislators to consider establishing a state tax credit for charitable donations by non-itemizers to encourage all North Carolinians to give generously to support the work of nonprofits. We will let you know when it is the right time to take action to support either federal or state legislation to enhance incentives for charitable giving.

To help your nonprofit’s staff and board better understand how recent and upcoming public policy changes may affect your organization’s operations, the Center is offering two online nonprofit policy briefings in the next couple of weeks. The first policy briefing on Monday, March 15 from 11:00 a.m.-12:00 p.m. will provide an overview of the latest federal and state COVID-19 relief plans and the potential policy solutions that could help nonprofits during the 2021 NC legislative session. The second policy briefing on Friday, March 26 (note the change in date) from 9:30-11:00 a.m. will feature a bipartisan panel of state legislators sharing insights on state policy priorities in 2021, the budget process, and how nonprofits can effectively engage with elected officials as the pandemic continues. Register for one or both of these policy briefings.

The deadline for nonprofits and businesses to apply for PPP loans is currently set for March 31. Yesterday, a bipartisan group of members of the U.S. House of Representatives introduced a bill to extend this deadline through May 31 and to allow the Small Business Administration (SBA) to continue to process loan applications through June 30. Also yesterday, the National Council of Nonprofits and several other national organizations sent a letter to the SBA seeking help in fixing several challenges that nonprofits have faced in the PPP loan application process.

Yesterday, Senator Amy Klobuchar (D-MN) introduced the WORK NOW Act, which would provide $50 billion in grants to charitable nonprofits to expand staff and hire unemployed individuals. This bill is welcome news in light of the challenges nonprofits have faced with increased demand for services and loss of employees and volunteers over the past year. A recent report from the Center for Civil Society Studies at Johns Hopkins University found that nonprofit employment has declined by 7.7% since February 2020 and estimates that it will take nearly two years for nonprofit employment to return to pre-pandemic levels.

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 COVID-19 pandemic by sharing information about the availability, safety, and importance of vaccines and about the continuing importance of wearing masks and social distancing when in public. 

Yesterday, Governor Roy Cooper announced that North Carolinians with high-risk medical conditions (includes a list of the many eligible conditions) can begin receiving vaccinations next Wednesday, March 17. Vaccinations will also be available next Wednesday for individuals living in group settings, including people experiencing homelessness and people living in correctional facilities. As of last week, frontline essential workers – including social workers, public health workers, clergy, homeless shelter staff, veterinarians, college and university instructors and support staff, and workers in stores that sell groceries and medicine – are eligible to receive vaccines. North Carolina is also currently vaccinating educators, school personnel, child care workers, health care workers, long-term care staff and residents, and people 65 and older.

Here are four things your nonprofit can do to help ensure that people you serve get vaccinated once they are eligible:

On Wednesday, the NC Senate unanimously approved a bill (S.114) that would prevent increases in unemployment insurance (UI) costs for virtually all North Carolina nonprofits this year. Two parts of the bill are particularly noteworthy for nonprofits:

The NC House of Representatives could take up the bill as soon as next week.

A new bill (S.228) introduced in the NC Senate on Wednesday would allow many North Carolina employers to offer exclusive provider benefit (EPO benefit) plans for their employees. EPO benefit plans are typically less expensive than other health insurance plans and allow participants to use a limited network of local health care providers while paying the full cost for any out-of-network health services other than emergency care. The Center regularly hears from nonprofits seeking ways to provide more affordable health coverage for their employees. The Center is continuing to research whether this legislation would provide a meaningful and affordable health coverage option for some nonprofits.

A bill (H.B. 279) filed in the NC House of Representatives yesterday would make a variety of changes to state tax laws. Most notably for nonprofits, the proposal would allow North Carolinians who use the universal charitable deduction – and those who itemize their deductions and contribute more than 60% of their adjusted gross income to charitable nonprofits – to get the full benefit of these tax deductions on their state taxes in 2021. Last year, North Carolina “decoupled” from these two federal tax incentives for charitable giving, meaning that North Carolinians who gave generously didn’t get breaks on their state tax liability.

Starting on July 1, 2021, more than 1 million North Carolinians on NC Medicaid and NC Health Choice will begin having their coverage managed by one of five private health insurance plans. With enrollment in Medicaid managed care starting soon, it is important for nonprofit service providers to understand the basics of how this transition in Medicaid will work. The National Health Law Program, Charlotte Center for Legal Advocacy, North Carolina Justice Center, Disability Rights NC, and Pisgah Legal Services are offering a free webinar on Friday, March 19 from 12:00-1:30 p.m. to share information to help service providers and advocates better understand Medicaid transformation.

As part of the COVID relief package that was approved in December, most Americans were eligible for Economic Impact Payments – or stimulus payments – in the amount of $600 for each person in their household. The IRS has made direct deposits or issued checks for these stimulus payments, but many North Carolinians – particularly those with low incomes who don't typically file federal income tax returns and those with children – may not have received these payments or may not have received the full amount they are due. The IRS has a tool for individuals to check the status of their stimulus payments.

Individuals and families that did not receive their stimulus payments are eligible for a Recovery Rebate Credit, which they can claim by filing IRS Form 1040 and using line 30. The Center strongly encourages nonprofits – particularly those serving North Carolinians with low incomes and those serving children – to help spread the word to ensure that those who did not receive their full Economic Impact Payments file a Form 1040 and use line 30 to request their stimulus payments.

On Sunday, President Biden issued an executive order on promoting access to voting. Among other things, the executive order would analyze barriers to voting for individuals with disabilities, provide federal assistance to states under the National Voter Registration Act, and improve and modernize the Vote.org website. This executive order should be helpful to the many nonprofits that work to ensure the people they serve are registered to vote and actually vote in elections.

Thank you for reading this update! Before you move on to your next email, please FORWARD this update to a few nonprofit colleagues who you feel would value this information. Let them know to read to the end for the link to sign up to receive weekly policy updates throughout the pandemic, or better yet to join the Center as a member to receive these and other regular updates, along with many more valuable resources.