Nonprofits are seeking $60 billion in assistance from the federal government to help them respond to special needs and offset the loss of income that many are suffering.
“Without dramatic and immediate financial and programmatic backstop from government, America’s charitable nonprofits and the people we serve face a precipitous decline in mission services at a time when our efforts are needed like never before by the most vulnerable in our communities,” states a letter endorsed by more than 50 nonprofit groups.
United Way Worldwide CEO Brian Gallagher said that in the current crisis, it makes sense for Congress to help out nonprofits the same way it will likely bail out certain business sectors.
“We’re bigger than the airline industry,” Gallagher said. “We are a huge employer in this country, and our people help other people.”
The letter states that many nonprofits will suffer a one-two punch; a loss of contributions due to the sinking stock market, plus increased demand for services.
“Millions of jobs in America’s charitable sector are at risk unless a reliable source of cash can be provided to assure continued operations,” the letter states. “And in many cases, the scope of operations will need to expand to accommodate increased demand for vital services.”
‘Shock Absorber’
Steven Preston, CEO of Goodwill Industries International, stated that charities are “society’s shock absorber” in times of crisis. “The financial impact of the crisis has put the very survival of many essential service providers at risk,” Preston said in an emailed statement.
The Senate cleared a $100 billion House bill Wednesday that will provide a wide variety of help to the struggling economy.
That bill has drawn praise from nonprofit leaders. Among other things, it includes a provision that allows both businesses and nonprofits to take advantage of a tax credit for providing paid leave to employees.
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 letter also calls for Congress to allow donors who are giving now to use those deductions on their 2019 taxes and to enact a temporary “universal deduction” for all taxpayers, regardless of whether they itemize.
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.
Census Worries
Also Wednesday, Michelle Yanche, executive director of Good Shepherd Services, called on the government to extend the deadline for census participation.
“At a time when communities are concerned first and foremost with their health, we should not expect them to risk their family’s well-being to complete the census,” the nonprofit wrote.
Census efforts currently are underway. July 31 is the deadline for households to respond.
