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Senators Recommend Giving Incentives for Next Relief Package

MAY 7, 2020

Senators Recommend Giving Incentives for Next Relief Package

DATED MAY 7, 2020
DOCUMENT ATTRIBUTES
  • Authors
    Lankford, Sen. James
    King, Sen. Angus S., Jr.
    Tillis, Sen. Thom
    Coons, Sen. Christopher A.
    McSally, Martha
    Blumenthal, Sen. Richard
    Hoeven, Sen. John
    Peters, Sen. Gary C.
    Cramer, Sen. Kevin
    Harris, Kamala
    Boozman, Sen. John
    Smith, Sen. Tina
    Loeffler, Kelly
    Sinema, Sen. Kyrsten
    Sullivan, Sen. Dan
    Booker, Sen. Cory A.
    Gardner, Cory
    Klobuchar, Sen. Amy
    Scott, Sen. Tim
    Kaine, Sen. Tim
    Rounds, Sen. Mike
    Udall, Tom
    Burr, Sen. Richard
    Schatz, Sen. Brian
    Moran, Sen. Jerry
    Heinrich, Sen. Martin
    Hyde-Smith, Sen. Cindy
    Merkley, Sen. Jeff
    Daines, Sen. Steve
    Tester, Sen. Jon
  • Institutional Authors
    U.S. Senate
  • Subject Area/Tax Topics
  • Industry Groups
    Nonprofit sector
  • Jurisdictions
  • Tax Analysts Document Number
    2020-17812
  • Tax Analysts Electronic Citation
    2020 TNTF 90-15
    2020 EOR 6-60
  • Magazine Citation
    The Exempt Organization Tax Review, Jun. 2020, p. 466
    85 Exempt Org. Tax Rev. 466 (2020)

May 7, 2020

The Honorable Mitch McConnell
Majority Leader
United States Senate
The Capitol, S-230
Washington, D.C. 20510

The Honorable Charles Schumer
Minority Leader
United States Senate
The Capitol, S-221
Washington, D.C. 20510

Dear Leader McConnell and Leader Schumer:

Charitable nonprofits are significant employers ready to serve. The 12 million people working for America's charities are the backbone of our communities: the food banks, shelters, domestic violence services, houses of worship, early care and education centers, after-school facilities, and more that are being called on to feed, house and care for people whose lives have been disrupted by sickness, closures, and job loss. Cities and states are relying on nonprofits to help mitigate the impact of the pandemic. We will continue to rely on the experience, expertise and ingenuity of the sector during future recovery efforts. As we work to build on the CARES Act in the next relief package, we cannot overlook the needs of these community-based institutions and must ensure that charitable nonprofits are fully supported in their service on the front lines of responding to the COVID-19 crisis.

Specifically, we urge you to include the following clarifications and provisions in the next relief package:

1. Expand Nonprofit Access to Relief and Support: Expand the eligibility for nonprofits to participate in the Paycheck Protection Program by modifying the current 500-employee cap or by other means. Adjust Economic Stabilization Fund or other mechanisms to implement programs to support nonprofit employers with between 500 and 10,000 employees. Provide clear guidance and maximum flexibility to private lenders to prioritize processing the applications of charitable nonprofits.

2. Increase Unemployment Insurance Reimbursement: Treat self-funded nonprofits fairly by increasing the federal unemployment insurance reimbursement for self-funded nonprofits to 100% of costs. As currently written Section 2103 of the CARES Act will subject nonprofits throughout the country to crippling payments to their state unemployment systems later this year, while other employers will likely experience little or no additional costs resulting from mass COVID-19-related layoffs. The impacts will be real. States will be greatly challenged to distinguish among employers in an already overburdened system due to the unprecedented surge in new applicants. Many nonprofits will be hit with a bill for reimbursement to states at a time when they will be in the highest demand for providing services. This could actually inhibit nonprofits' ability to perform.

3. Strengthen Charitable Giving Incentives: Encourage donations to the work of charitable organizations in their communities by enabling taxpayers making donations on and after March 13. (date of national emergency declaration) and before July 16 to claim the deductions on their 2019 tax filings. This retroactive application should apply to itemized and above-the-line deductions during this critical period to encourage an influx of donations when these nonprofits need them most. Also, enhance the Above-the-Line Deduction in the CARES Act by increasing the $300/person cap and extending the effective date of the incentive.

On behalf of the nonprofit charities in each of our districts providing critical services to our constituents, we appreciate your attention to this request and believe that the inclusion of these provisions will directly help charitable nonprofits respond to the fallout from this pandemic and will continue to serve our communities in the aftermath. We appreciate your consideration and attention to this request.

Sincerely,

JAMES LANKFORD
United States Senator

ANGUS S. KING, JR.
United States Senator

THOM TILLIS
United States Senator

CHRISTOPHER A. COONS

MARTHA MCSALLY
United States Senator

RICHARD BLUMENTHAL
United States Senator

JOHN HOEVEN
United States Senator

GARY C. PETERS
United States Senator

KEVIN CRAMER
United States Senator

KAMALA D. HARRIS
United States Senator

JOHN BOOZMAN
United States Senator

TINA SMITH
United States Senator

KELLY LOEFFLER
United States Senator

KYRSTEN SINEMA
United States Senator

DAN SULLIVAN
United States Senator

CORY A. BOOKER
United States Senator

CORY GARDNER
United States Senator

AMY KLOBUCHAR
United States Senator

TIM SCOTT
United States Senator

TIM KAINE
United States Senator

M. MICHAEL ROUNDS
United States Senator

TOM UDALL
United States Senator

RICHARD BURR
United States Senator

BRIAN SCHATZ
United States Senator

JERRY MORAN
United States Senator

MARTIN HEINRICH
United States Senator

CINDY HYDE-SMITH
United States Senator

JEFFREY A. MERKLEY
United States Senator

STEVE DAINES
United States Senator

JON TESTER
United States Senator

DOCUMENT ATTRIBUTES
  • Authors
    Lankford, Sen. James
    King, Sen. Angus S., Jr.
    Tillis, Sen. Thom
    Coons, Sen. Christopher A.
    McSally, Martha
    Blumenthal, Sen. Richard
    Hoeven, Sen. John
    Peters, Sen. Gary C.
    Cramer, Sen. Kevin
    Harris, Kamala
    Boozman, Sen. John
    Smith, Sen. Tina
    Loeffler, Kelly
    Sinema, Sen. Kyrsten
    Sullivan, Sen. Dan
    Booker, Sen. Cory A.
    Gardner, Cory
    Klobuchar, Sen. Amy
    Scott, Sen. Tim
    Kaine, Sen. Tim
    Rounds, Sen. Mike
    Udall, Tom
    Burr, Sen. Richard
    Schatz, Sen. Brian
    Moran, Sen. Jerry
    Heinrich, Sen. Martin
    Hyde-Smith, Sen. Cindy
    Merkley, Sen. Jeff
    Daines, Sen. Steve
    Tester, Sen. Jon
  • Institutional Authors
    U.S. Senate
  • Subject Area/Tax Topics
  • Industry Groups
    Nonprofit sector
  • Jurisdictions
  • Tax Analysts Document Number
    2020-17812
  • Tax Analysts Electronic Citation
    2020 TNTF 90-15
    2020 EOR 6-60
  • Magazine Citation
    The Exempt Organization Tax Review, Jun. 2020, p. 466
    85 Exempt Org. Tax Rev. 466 (2020)
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