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Urgent Nonprofit Policy Priorities in Reforms to CARES Act

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Urgent Nonprofit Policy Priorities in Reforms to CARES Act Urgent Nonprofit Policy Priorities in Reforms to CARES Act July 13, 2020 The Honorable Nancy Pelosi The Honorable Mitch McConnell Speaker Majority Leader U.S. House of Representatives U.S. Senate Washington, DC 20515 Washington, DC 20510 The Honorable Kevin McCarthy The Honorable Chuck Schumer Minority Leader Minority Leader U.S. House of Representatives U.S. Senate Washington, DC 20515 Washington, DC 20510 Dear Speaker Pelosi, Leader McConnell, Leader McCarthy, and Leader Schumer: The charitable nonprofit community appreciates that several key relief programs in the various COVID-19 relief laws enacted by Congress extend eligibility to some nonprofit organizations. These bipartisan efforts recognize both that the American people rely extensively on charitable nonprofits for important services and supports and that charitable nonprofits play a significant role in our nation’s economy as the third largest employer. These programs have been a lifeline for many nonprofits during this difficult time and it is clear that every dollar granted, donated, or earned has been leveraged immediately to address clear and present challenges. However, nonprofits – like the people we serve throughout the country – still face significant challenges. As we continue to provide relief and begin the process of reopening, these challenges will only grow. As you work on the next COVID-19 relief package this month, the charitable nonprofit sector urges you to address four specific issues to ensure we can continue to provide frontline services to those in need, and are able to help our communities recover. The following key areas have garnered widespread bipartisan support in both the House and Senate and will be covered in depth at virtual briefings during the #Relief4Charities “week of action” beginning July 13: 1. Continue Emergency Funding Programs that provide nonprofits with financial support enabling them to continue and expand services protecting vulnerable families and frontline responders. Charitable organizations must have additional resources to provide vital services essential to individual and community wellbeing, both during the pandemic and to support recovery and rebuilding efforts. Our requests: (1) Extend and expand the Paycheck Protection Program (“PPP”) by enabling a second round of funding for all nonprofits and modifying the eligibility criteria pertaining to 500 employees; (2) Enact and expand grant and funding programs, such as the proposed WORK NOW Act or the Employee Retention Tax Credit, to help nonprofits retain employees, scale service delivery, and create new jobs; and (3) Appropriate funds for federal grant programs that enable nonprofits to advance their missions of serving communities. 2. Provide Low-Cost Loans to Mid-Size and Larger Nonprofits which have not been able to access government funding. Nonprofits with 500 or more employees are currently completely shut out of the two most important sources of COVID-19 financial support: the PPP and the Federal Reserve Main Street Lending Program (“MSLP”). The recently proposed “nonprofit” MSLP contains numerous financial restrictions and lacks the forgivable feature of PPP that make it unattractive to most organizations that are targeted for the support. Our requests: (1) Authorize and require the Federal Reserve to quickly finalize a nonprofit lending facility under MSLP that is tailored to accommodate mid-size nonprofits including language similar to H.R. 6800 Nonprofit Community Letter Page 2 of 36 that offers a loan forgiveness option; and (2) Extend eligibility of PPP to all nonprofits of all sizes similar to H.R. 6800 and lift the loan cap to appropriately reflect the operational needs of these nonprofits. 3. Strengthen Charitable Giving Incentives to encourage all Americans to help their communities during these challenging times through charitable donations. Donations are especially needed today as nonprofits respond to the current health and economic crisis and will be critical in the future as nonprofits play an essential role in recovery efforts when the pandemic ends. Our requests: (1) Expand the above-the-line or universal charitable deduction in the CARES Act by enacting the provisions in S. 4032/H.R. 7324 increasing the amount to one-third of the standard deduction; and (2) Extend this and the giving incentives enacted in the CARES Act through 2021. 4. Provide Full Unemployment Benefit Reimbursement to nonprofits that self-insure these benefits. Federal and state laws give nonprofits the option of operating as self-insured (“reimbursing”) employers that make payments to their state unemployment insurance systems for benefits attributable to them in lieu of advance contributions. Shut-down orders by government officials and program cancellations have forced nonprofits to furlough or layoff staff, triggering immediate, catastrophic unemployment payment bills that are due this month in most states. Compounding the problem has been a Labor Department ruling that requires nonprofits to pay 100% of unemployment costs upfront. These challenges are exacerbating cash flow difficulties at a time when other employers will likely experience little or no additional costs resulting from COVID-19-related layoffs and are diverting valuable funds from mission services. Our request: Increase the federal unemployment insurance reimbursement for self-insured (reimbursing) nonprofits to 100% of costs. We thank you, once again, for your leadership in crafting and passing COVID-19 related relief legislation. We hope that nonprofits can count on your continued leadership, and your insistence that the needs of nonprofits, and the indispensable role they play, are at the center of upcoming relief legislation. And we count on your active engagement with the President to make sure that charitable nonprofits can continue to fulfill their missions, especially in times such as this of unique challenge to our nation. Respectfully, National Nonprofits American Bookbinders Museum California A Breath of Hope Lung Foundation Minnesota American Cancer Society Cancer District of Columbia ACCSES District of Columbia Action Network Agricultural Stewardship New York American College Dance Maryland Association Association Alexander Hamilton Scholars Washington American Heart Association Texas Alliance for Childhood Maryland American Institute for Conservation District of Columbia Alliance for Peacebuilding District of Columbia American Library Association Illinois Alliance for Strong Families and District of Columbia American Lung Association Illinois Communities American Network of Community District of Columbia Alzheimer’s Research and Arizona Options & Resources (ANCOR) Prevention Foundation American Society on Aging California Alzheimer's Association District of Columbia American Youth Circus New York American Alliance of Museums Virginia Organization American Association for Museum District of Columbia Americans for the Arts District of Columbia Volunteers America's Promise Alliance District of Columbia American Bone Health North Carolina Anthony Bates Foundation Arizona Nonprofit Community Letter Page 3 of 36 Army Heritage Center Foundation Pennsylvania Children's Cancer Association Oregon Arts For Kids Inc. New Jersey Children's Home Society of Illinois ASI California America Asperger/Autism Network Massachusetts Children's Rights New York Association for Safe International Maryland Cholangiocarcinoma Foundation Utah Road Travel Church World Service New York Association for the Advancement Pennsylvania Clergy and Laity United for California of Sustainability in Higher Economic Justice Education Climate Generation: A Will Steger Minnesota Association of African American District of Columbia Legacy Museums Coalition For Non Profit Housing District of Columbia Association of Art Museum New York and Economic Development Directors Coalition of State Museum Texas Association of Children's Museums Virginia Associations Association of Children's Wisconsin College Diabetes Network Massachusetts Residential Centers (ACRC) Community Anti-Drug Coalitions of Virginia Association of Fundraising Virginia America (CADCA) Professionals Compassionate Hands Oklahoma Association of Junior Leagues New York Council for Advancement and District of Columbia International Support of Education Association of Nature Center Utah Council for Christian Colleges & District of Columbia Administrators Universities Association of Performing Arts District of Columbia Council for Developmental Oklahoma Professionals (APAP) Disabilities Inc. d.b.a. ABLE Association of Science Museum Illinois Community Based Services Directors Council of American Jewish New York Association of the United States Virginia Museums Navy Council of American Maritime Connecticut Association of University Centers Indiana Museums on Disabilities (AUCD) Council on Accreditation New York Association of Zoos and Maryland Council on Foundations District of Columbia Aquariums Council on International Maine Autoimmune Encephalitis Alliance, North Carolina Educational Exchange (CIEE) Inc. Covenant House International New York BALANCE California Dillon International Oklahoma Beyond Celiac Pennsylvania Drug Policy Alliance New York Blinded Veterans Association Virginia Dystonia Medical Research Illinois Boys & Girls Clubs of America Georgia Foundation Brain Aneurysm Foundation Massachusetts Earthwatch Massachusetts Cancer Legal Care Minnesota Education in Action Texas Cancer Support Foundation Arkansas Employee Ownership Expansion Virginia Catholic Charities
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