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Nonprofit Orgs Request More Charitable Giving Incentives

APR. 8, 2020

Nonprofit Orgs Request More Charitable Giving Incentives

DATED APR. 8, 2020
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Nonprofit Track Reforms to the CARES Act

April 8, 2020

The Honorable Nancy Pelosi
Speaker
U.S. House of Representatives
Washington, DC 20515

The Honorable Mitch McConnell
Majority Leader
U.S. Senate
Washington, DC 20510

The Honorable Kevin McCarthy
Minority Leader
U.S. House of Representatives
Washington, DC 20515

The Honorable Chuck Schumer
Minority Leader
U.S. Senate
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 CARES Act were modified to include nonprofit eligibility. This approach recognizes the significant role that charitable nonprofits play as the third largest employer in our nation's economy and as valued problem solvers. We are grateful that Congress recognized that every dollar granted, donated, or earned goes back into the community immediately to address clear and present challenges. However, implementation challenges have arisen with federal agencies and private entities that undermine Congressional intent to provide economic relief for nonprofit organizations.

As you work to build on the CARES Act, the charitable nonprofit sector requests a Nonprofit Track to ensure that charitable nonprofits are supported in their service on the front lines of responding to the COVID-19 crisis. Specifically, we urge Congress to include the following clarifications and provisions:

1. Expand Nonprofit Access to Credit by designating funding exclusively for nonprofits within the two principal loan programs established in the CARES Act to ensure that the organizations dedicated to addressing immediate pandemic-related problems are included in relief efforts and not excluded or pushed to the back of the line. The following additional improvements are needed to expedite relief:

  • Paycheck Protection Program: Provide incentives to private lenders to prioritize processing of applications of small nonprofits and expand the eligibility for nonprofits to participate in the Paycheck Protection Program by modifying the current 500-employee cap or by other means.

  • Mid-Size Business Loan Program: Adjust CARES Act Section 4003(c)(3)(D) to implement a program to support nonprofit employers with between 500 and 10,000 employees, including loan-forgiveness and other provisions. The legislation should direct the Treasury Department to have this program operational no later than 15 days after enactment.

2. Strengthen Charitable Giving Incentives to encourage all Americans to help their communities through charitable donations during these challenging times. The following modifications will generate immediate results:

  • Applicable to 2019 Tax Filings: Encourage donations to the work of charitable organizations in their communities today 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.

  • Improve the Above-the-Line Deduction in CARES Act by increasing the $300/person cap and extending the effective date of the incentive.

3. 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.

4. Increase Emergency Funding by appropriating funds for targeted state formula grants and programs that can provide a rapid infusion of cash to nonprofit organizations that are partnering with state and local governments to protect vulnerable families and frontline responders. Charitable nonprofits are on the frontlines of providing relief, support, and care now, while the pandemic rages, and going forward as America will struggle to recover. Organizations need the resources now to provide vital services essential to individual and community wellbeing.

We thank you, once again, for your leadership in crafting and passing the CARES Act. It was a critical first step. 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 this 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.

Sincerely,

Accord Network

Adult & Teen Challenge

Afterschool Alliance

Agudath Israel of America

Alfalit International

Allergy & Asthma Network

Alliance for Peacebuilding

Alliance for Strong Families and Communities

Alliance to End Hunger

Alpha-1 Foundation

ALS Association

Alzheimer's Association

American Alliance of Museums

American Association on Health and Disability

American Cancer Society Cancer Action Network

American Diabetes Association

American Foundation for Suicide Prevention

American Friends Service Committee

American Heart Association

American Jewish World Service

AMERICAN LEPROSY MISSIONS

American Library Association

American Lung Association

American Society on Aging

American Trails

Americans for the Arts

Angioma Alliance

Appalachian Trail Conservancy

Ar. Coalition Against Sexual Assault

Arthritis Foundation

Association of Art Museum Directors

Association of the United States Navy

Asthma and Allergy Foundation of America

Bethany Christian Services

Beyond Celiac

Big Brothers Big Sisters of America

Boy Scouts of America

Boys & Girls Clubs of America

Boys Town

Bread for the World

Bridge the Gap — SYNGAP Education and Research Foundation

CADCA (Community Anti-Drug Coalitions of America)

Call of the Sea

Campaign for a Commercial-Free Childhood

CARE USA

Catholic Charities USA

Catholic Relief Services

Center for Conservation Peacebuilding

Center for Policy Analysis

CenterLink: The Community of LGBT Centers

ChildFund International

Children's Home Society of America

Children's Trust Fund Alliance

Christian Connections for International Health

Christopher & Dana Reeve Foundation

Church Hill Activities and Tutoring (CHAT)

Citizen Schools

City Year, Inc.

Citygate Network

Colorectal Cancer Alliance

Congregation of Our Lady of the Good Shepherd, U.S. Provinces

COPD Foundation

Council for Advancement and Support of Education

Council on Foundations

Covenant House International

Crohn's & Colitis Foundation

Cross International

Cure SMA

CureDuchenne

Danielle Byron Henry Migraine Foundation

David Brower Center

Davis Phinney Foundation

Debbie's Dream Foundation: Curing Stomach Cancer

Dignity Freedom Network

Dreamsickle Kids Foundation

Epilepsy Foundation

ETS

Evangelical Council for Financial Accountability (ECFA)

Exponent Philanthropy

Faith & Giving Coalition

Family Focused Treatment Association

Fight Colorectal Cancer

FoodCorps

GBS-CIDP Foundation International

Generations For Peace Inc.

Girl Scouts of the USA

Girls Inc.

Giving Children Hope

GO2 Foundation for Lung Cancer

Goodwill Industries International, Inc.

Gould Syndrome Foundation

Growing Hope Globally

Habitat for Humanity International

Healing Household 6

Healthy Schools Campaign

Helen Keller International

Hemophilia Federation of America

HIAS

Hoving Home

Hydrocephalus Association

Independent Sector

Institute of International Education

InterAction

International Civil Society Action Network (ICAN)

International Myeloma Foundation

International Rescue Committee

Islamic Relief USA

JCC Staten Island

Jewish Community Centers Association of North America

Jewish Council for Public Affairs

Jewish Federations of North America

Jumpstart

Lakeshore Foundation

Land Trust Alliance

Langham Partnership USA, INC., NFP

Leadership 18

League of American Orchestras

Leukemia & Lymphoma Society

Little Miss Hannah Foundation

Living Waters for the World

Lupus Foundation of America

Lutheran Center for Religious Liberty

Lutheran Services in America

Lymphangiomatosis & Gorham's Disease Alliance

March of Dimes

Meals on Wheels America

Mennonite Central Committee U.S.

Mental Health America

MENTOR: The National Mentoring Partnership

Mercy Corps

Mercy-USA for Aid and Development

Mesothelioma Applied Research Foundation

Military Order of the Purple Heart

Mission: Hope

MLD Foundation

MOVIEGUIDE®

Multiple Sclerosis Association of America

Muscular Dystrophy Association

National Alliance for Hispanic Health

National Alliance on Mental Illness

National Alliance to End Sexual Violence

National Association of Evangelicals

National Community Action Partnership

National Council for Behavioral Health

National Council of Nonprofits

National Eczema Association

National Environmental Health Association

National Fitness Foundation

National Health Council

National Human Services Assembly

National Marine Sanctuary Foundation

National Multiple Sclerosis Society

National Network for Youth

National Trust for Historic Preservation

Nations Kidney Foundation

Native American Rights Fund

Network of Jewish Human Service Agencies

Nonprofit Leadership Alliance

Nonviolent Peaceforce

Oregon Coalition Against Domestic & Sexual Violence

Oxfam

Partners in Action

Peace Direct US

Penny Appeal USA

Plant With Purpose

Playworks

Prevent Blindness

ProInspire

Project HOPE

Safe States Alliance

Saint Francis Ministries

Save Our Shores

Search for Common Ground

She Is Safe

Siegel Rare Neuroimmune Association

Solve ME/CFS Initiative

Solving Kids' Cancer

Special Olympics International

SPOON

Squash and Education Alliance

St. Baldrick's Foundation

Superficial Siderosis Research Alliance (SSRA)

Susan G. Komen

Teach For America

TeamConnor Childhood Cancer Foundation

The Alliance for Middle East Peace T

he Evangelical Environmental Network

The Foundation for Ichthyosis & Related Skin Types, Inc.

The Hometown Foundation, Inc.

The LAM Foundation

The Myositis Association

The Sentry

The Trevor Project

TREA: The Enlisted Association

Trust for America's Health

U.S. Soccer Foundation

UNICEF USA

Union for Reform Judaism

Union of Orthodox Jewish Congregations of America

United Philanthropy Forum

United Way Worldwide

VetsFirst

VisionServe Alliance

Volunteers of America

Water is Basic

Wilderness Inquiry

Wisconsin Coalition Against Sexual Assault

WomenHeart: The National Coalition of Women with Heart Disease

World Learning

World Relief

World Vision

Year Up

YMCA of the USA

YWCA USA

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