American Recovery Act | Benefits for Nonprofits
Posted by [email protected] on Jul. 1, 2021 / Subscribe 0
By Monique Curry-Mims, MBA, MSEd
Principal and Founder, Civic Capital Consulting
AFP-GPC and AFP Global US Government Relations Committee Member
After a year of us collectively holding our breaths, physically and figuratively, newly elected President Biden and Congress in their first session passed the American Recovery Act (ARA). But can nonprofits breathe a sigh of relief? There have been a number of articles that talk about what is available to nonprofits nationally, including Candid’s recent article provides insight into:
-Paycheck Protection Program (PPP) Loans which expands eligibility to nonprofits that operate at multiple locations with more than 500 employees
-Federal Unemployment Coverage with provisions that increases the federal coverage of the unemployment costs of reimbursing nonprofits from 50 percent to 75 percent, and provides continued coverage for self-employed workers and staff of religious and very small nonprofits.
-Aid to State, Local, Tribal, and Territorial Governments to provide “assistance to households, small businesses, and nonprofits, or aid to impacted industries.”
-Charitable Giving Incentives that if enacted would allow taxpayers who claim the standard deduction, rather than itemizing deductions, on their tax returns to take a deduction for charitable giving valued at up to one-third of the standard deduction (around $4,000 for an individual filer and $8,000 for married joint filers). This added giving incentive would be available for tax years 2021 and 2022.
In addition to operational and overhead support, there are a number of measures that provide direct support to our communities that nonprofits can benefit from and use to reduce issues exacerbated or created by COVID-19. ARA Funds are being allocated to support nonprofits who provide nutrition, housing, education, public, mental, and behavioral health services, substance use services, and capacity building and technical assistance around recruiting, hiring, and training.
Want to learn more? Here is a NowThis News video unpacking the rescue plan or the full bill here.
With a portion of the funds being distributed through various federal departments, The City of Philadelphia is posed to directly receive $1.4 billion and the school district an additional $1.3 billion. As with any federal dollars, there are restrictions and provisions as to how those dollars can be spent. However, regardless of how, the impact of those dollars on the people we serve will impact their needs and the work of our organizations.
Currently the City is focused on allocating funds to gun violence, poverty, COVID-19 recovery, and engaging with nonprofit leaders and partners to continue and expand anti-poverty work in the community, while the district’s current focus is on “the social, emotional and mental health needs of students and staff, student learning recovery and learning acceleration, and safe and healthy schools that support high-quality teaching and learning, and equitable outcomes for all students.”
Both the city and the district held engagement processes to get feedback as to how dollars should be spent. What are your thoughts? How can these dollars support the communities you serve? Their direct support of these funds or lack thereof, can help or hinder the work you do. Get involved, reach out to your local districts and city and state reps to share your thoughts and let your voice be heard.
Learn more about The City of Philadelphia’s Budget and American Recovery Act Engagement Process. | https://phlcouncil.com/weekly-report-44/
Learn more about The School District of Philadelphia’s Recovery Act Engagement Process. | https://www.philasd.org/budget/american-rescue-plan-act/
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