[ad_1]

A $ 1.9 trillion stimulus package passed by the House early Saturday morning would make some large nonprofits eligible for Paycheck Protection Program forgivable loans, according to a analysis of legislation by the National Council of Associations.

Under a stimulus bill adopted in march In 2020, nonprofits with 500 or fewer employees were eligible for paycheck protection program repayable loans of up to $ 10 million.

The bill passed by the House on Saturday would extend that eligibility to nonprofits that operate at multiple locations as long as no more than 500 employees work at one location. The bill would also remove the “membership rule,” which makes certain nonprofits ineligible for PPP loans if they are affiliated with national organizations.

A stimulus bill adopted in december created a second round of Paycheck Protection Program loans for nonprofits and businesses with up to 300 employees; eligibility for this second round of loans would not change under the new House bill.

The House stimulus bill would also extend and extend assistance to non-profit organizations that provide unemployment benefits themselves. Under previous stimulus legislation, the federal government covered half of the cost of employee benefits for its laid-off employees. The new House bill would raise the reimbursement rate to 75% until August 29.

No incentives to give

The bill omits a key provision sought by nonprofit organizations; an extension of the charitable tax break for people who do not itemize their taxes. A temporary provision that allows singles to deduct up to $ 300 and couples to deduct up to $ 600 in charitable donations even if they don’t itemize them is currently set to expire after tax year 2021.

The bill includes $ 350 billion for state and local governments, territories and tribes, according to the Washington post.

Advocates for nonprofits say these funds are crucial because they would prevent cash-strapped states and local governments from delaying or reducing payments to charities that have service contracts with them.

The bill would also provide for a new set of dunning checks – $ 1,400 for individuals and $ 2,800 for married couples, subject to certain income limits. These stimulus checks could reduce immediate demands on food banks and other providers of basic necessities, and could trigger a wave of donations from people who do not need the extra help, if the experience of food checks. past recovery is held.

The bill would also provide an additional $ 400 per week in unemployment benefits until August 29.

Sandra Swirski, a partner of Urban Swirski & Associates who works with leaders of nonprofits, praised the House bill for bringing some relief to charities, but said the legislation was ” ultimately disappointing ”because it did not extend the charitable deduction for taxpayers who didn t detail. She noted that previous legislation providing for the temporary deduction for such taxpayers was effective in stimulating donations.

The legislation could face changes in the Senate, where Democrats have only one margin of one vote.

[ad_2]

Leave a Reply

Your email address will not be published.