Groups representing nonprofits offered strong words of support for the House-passed coronavirus spending package, saying it does the right thing for nonprofit workers.
“This emergency package will provide some much needed relief throughout the economy and to the nonprofit sector in particular,” said Shannon McCracken, chief executive of the Nonprofit Alliance, in an emailed statement. “Specifically, the legislation’s provision providing a tax credit for paid leave to employees will be of great assistance to the nonprofit community.”
Also, the legislation calls for free coronavirus testing, including free testing for Americans without health insurance, she noted.
Tim Delaney, CEO of the National Council of Nonprofits, also praised the legislation in a statement.
“Congress wrote the legislation in a way that ensures nonprofits can use the tax credit to cover paid leave for their employees,” Delaney said.
Although nonprofits are exempt from things like property taxes, the credit would apply toward payroll taxes, which are a substantial expense for many nonprofits.
The House passed the bill early Saturday morning, and President Trump indicated he would sign it. However, the legislation faces an uncertain future in the Senate this week, where some Republicans are expressing concerns about the sick-leave provision’s impact on businesses, among other concerns.
A coalition of 35 national nonprofits and charity advocacy groups sent a letter to Congress urging lawmakers to include nonprofits in any stimulus package enacted in response to the coronavirus outbreak.
“Nonprofits must be expressly included in tax and other relief targeted to small businesses,” the letter states.
Food Banks and Shelters
The letter also urges lawmakers to provide increased funding to help nonprofits like food banks and shelters, where the demand for services may increase.
Signatories on the letter include the American Red Cross, Girl Scouts, Boys & Girls Clubs of America, and Feeding America.
The letter also calls for Congress to boost giving by enacting a temporary “universal deduction” for all taxpayers, regardless of whether they itemize, to get a tax break for giving “to nonprofits responding to, or suffering from, the coronavirus.”
Nonprofits have long sought a universal deduction, especially since the tax law of 2017 roughly doubled the standard deduction. The legislation passed by the House doesn’t contain the provision.
