The CARES Act enacted on March 27 enables nonprofits to participate in the Paycheck Protection Program and the SBA loan programs, provided they employ less than 500 people. For information on these programs click here
. Some special provisions of interest to nonprofits include a $300 above-the-line deduction for cash contributions generally to public charities in 2020 and increases the limitation on charitable deductions from 60% to 100% of modified income for cash contributions generally to public charities in 2020. It also increases the limitation for food contributions by corporations from 15% to 25% of modified income. As for pension plans sponsored by charitable organizations whose primary purpose is to provide medical care and assistance to mothers and children, the minimum funding rules are modified to allow more flexibility in the amount required for payments.
Also, on March 27 Reps. Seth Moulton (D-MA) and Brian Fitzpatrick (R-PA) introduced the Save Organizations that Serve (SOS) America Act to provide $60 billion in emergency assistance and create a robust universal charitable deduction for nonprofits by raising the cap and allowing all taxpayers to immediately claim the deduction on their 2019 taxes and beyond. It would also ensure all nonprofits qualify for the new SBA loans by removing the 500-employee caps as they are the third largest workforce industry — larger than transportation, construction and even manufacturing. The 12.3 million people working for America’s charities are on the frontlines of the coronavirus response, running food banks, shelters, domestic violence services, houses of worship, early care and education centers, after-school facilities, and more that are being called on to feed, house and care for people whose lives have been disrupted by closures, job loss and sickness. While local United Ways are stepping forward to help everyone, from workers to children to seniors, the 211 call centers that provide information are experiencing 200-300% increases in call volume. This legislation would help these nonprofits continue this service and stay in business long-term.