Resources for Non-Profit Organizations

On Friday, Congress passed the CARES Act into law in response to the Coronavirus pandemic. CARES contains a number of provisions that are relevant to non-profits:

· Paycheck Protection Program: loans/grants that can be used for payroll costs, employee salaries, interest payments on mortgages, rent, utilities, interest on other debts. Deferment and forgiveness eligibility included.

· Expanded Economic Injury Disaster Loan (EIDL) and Emergency Grants: rapid grant procedure that could put $10,000 in a nonprofit’s hands within three days to pay salary and operating expenses.

· Mid-Size Loan Program: for nonprofit organizations of 500 to 10,000 employees; designed to help organizations retain at least 90% of their workforce; still being designed and will take longer to access.

· Pandemic Unemployment Assistance Program: expanded benefits without waiting period to workers who are unemployed, partially unemployed, or temporarily unable to work; provisions for reimbursement of employer costs to pay unemployment benefits.

· Employee Retention Credit for Employers: provides refundable payroll tax credit for 50% of wages paid by employers to employees during Covid-19 crisis.

· Expanded Charitable Deductions: individuals receive $300 deduction for donations to charitable organizations regardless of itemized deduction.

For detailed explanation and any conditions governing organizational eligibility,

please see the following links:

Nonprofit Quarterly - Cutting through the jargon - how the cares act works for nonprofits

Arnold and Porter - Analysis of Cares act for Nonprofits

Resources for Non-Profit Organizations

OTHER HELPFUL LINKS: