$2 Trillion CARES Act Nears Passage – What’s in it for Nonprofits?

by: Smith and Howard

March 27, 2020

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The Coronavirus Aid, Relief, and Economic Security Act “CARES Act” was passed by the Senate earlier this week. It is expected to be passed by the House of Representatives today and immediately signed by the President. Within the 880-page legislation are opportunities for nonprofit organizations, including:

  • Emergency Small Business Loans – up to $10 million for eligible nonprofits
  • Economic Injury Disaster Loans – appropriates an additional $10 billion for eligible nonprofits, with the ability to obtain funding of $10,000 within three days
  • Charitable Giving Incentive – above the line tax deductions of up to $300
  • Employee Retention Payroll Tax Credit – refundable payroll tax credit of up to $5,000 for each employee when certain conditions are met
  • Industry Stabilization Fund – $425 billion for “eligible businesses”

The National Council of Nonprofits has put together an excellent summary every nonprofit should read.

Furthermore, the CARES Act allocates $150 billion for state and local governments.  In addition, another $340 billion has been allocated to government agencies for the needs of Americans during the coronavirus outbreak.  This bill provides new resources to help state, local and tribal governments as they combat this pandemic.  Included in the $340 billion are various programs that benefit multiple social services entities and the arts community.  Below is a select list of the programs supported through the bill:

  • Child Nutrition Program – $8.8 billion in additional funding to ensure children receive meals while school is not in session
  • Emergency Food Assistance Program – $450 million to help communities suffering from job losses, providing critical funding to food banks
  • Support for Legal Services – $50 million to provide civil legal aid needs for low-income Americans
  • Emergency Food and Shelter Program – $200 million for shelter, food and supportive services to individuals and families
  • National Endowment for the Arts and Humanities – $150 million to support arts organizations, museums, libraries, and other organizations
  • Department of Education – $30.75 billion for Education Stabilization Funds for states, school districts and institutions of higher education
  • Child Care Development Block Grant –$3.5 billion to supports childcare and early education programs
  • Head Start – $750 million to meet emergency staffing needs
  • Community Services Block Grant – $1 billion to help communities address increasing unemployment and economic disruption
  • Family Violence Prevention Services – $45 million to support families of domestic violence
  • Substance Abuse and Mental Health Services Administration – $425 million to increase access to mental health services
  • Corporation for Public Broadcasting – $75 million to make stabilization grants to public television and radio stations
  • Vulnerable Veterans – $590 million to supporting veterans at an increased risk of contracting coronavirus, including the Veteran Affairs per diem program
  • Emergency Solutions Grants – $4 billion to address the impact of coronavirus among individuals who are homeless or at risk of homelessness

See the full report on additional programs from the Committee on Appropriations here.

Additional Funding?

Nonprofit advocates are hoping additional federal funding will be available specially for nonprofits and are seeking an additional $60 billion aid package.

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