Nonprofits call for greater access to emergency federal loans

Advocates for the nonprofit sector have stepped up calls this past week for Congress to expand emergency loan access for larger nonprofits and strengthen charitable giving deductions.

One of the provisions pushed by the National Council of Nonprofits would allow nonprofits with more than 500 employees to access the Paycheck Protection Program. The loan program was created under the recently passed coronavirus relief law and allows recipients, who must have fewer than 500 employees, to get their loans forgiven if they retain staff. 

Nonprofits have also asked for Congress to increase the above-the-line charitable deduction. The Coronavirus Aid, Relief, and Economic Security Act already bolstered the deduction, but tax experts have found that only a small number of donors would benefit from the provision. Organizations are calling for its cap to be raised from $300 and for Congress to allow people to immediately claim the deduction on their 2019 taxes. 

U.S. Rep. Seth Moulton and U.S. Rep. Brian Fitzpatrick have sponsored legislation that would enact much of these provisions and give $60 billion in emergency funding to charities. 

Nonprofit New York has also called for additional support such as expanded insurance coverage for nonprofits who have experienced losses related to the coronavirus and funding for the state’s budget deficit. More than 100 regional nonprofits have already signed on to its letter to congressional leaders.