There is no question that nonprofits have faced challenges in the wake of the pandemic. In some cases, the demand for services provided by many nonprofits has increased substantially, making it a challenge for them to keep up with demand or ensure that there will be enough funding available to meet the demand.
In other cases, nonprofits have been forced to all but shut down completely due to government-imposed quarantines. The latest stimulus package signed by President Trump includes the following benefits directly affecting nonprofits.
Benefits Affecting Nonprofits
- An extension of Universal Charitable Deduction through 2021, which allows non-itemizers to take a deduction for charitable donations up to $300 for single filers and $600 for joint filers.
- Another round of Paycheck Protection Program funding through March that includes a broader population of 501(c)(6) organizations. To qualify for this second round of PPP funding, organizations must demonstrate a 25% reduction in gross receipts in any quarter of 2020 compared to the same quarter in 2019. Specific to 501(c)(6) organizations, they must have 300 or fewer employees (up from 150), 15% or less (up from 10%) in lobbying activities and receipts and less than $1 million in spending for lobbying activities during the most recent tax year that ended prior to February 15, 2020 to be eligible.
- $15 billion allocation of funds to “Save Our Stages” dedicated to Broadway music venues and other cultural institutions; however, these organizations must show at least 25% decline in revenues as compared to 2019 to be eligible.
- An extension of the 50% coverage of unemployment costs for reimbursing nonprofit employers until mid-March.
- The Employee Retention Credit has been extended into 2021, and the eligibility requirement has been expanded. Please see the following link for more details related to this provision: Stimulus Package Enhances the Employee Retention Credit.
We will be issuing more information related to the new stimulus funds as they impact the various sectors of the nonprofit industry. Please reach out to any of your contacts at Schneider Downs or contact Kim James or Staci Brogan.
