December 22, 2020
As this very challenging year comes to a close, Nonprofit New York is glad we can report that Congress passed COVID relief legislation late last night. We are particularly grateful to the New York Delegation for their consistent support of nonprofits and clear recognition of the critical role we play in the economy, safety net and social fabric of our region.
Throughout the year, Nonprofit New York, Leader Schumer, and thousands of partner organizations have advocated for nonprofit inclusion in federal COVID-19 relief efforts. This month Nonprofit New York sent a letter to the New York Congressional Delegation with recommendations for this phase of federal COVID-19 legislation. The information below outlines how our recommendations fared in the $900 billion relief package. We thank Senator Schumer and our tireless national umbrella, the National Council of Nonprofits, for their robust analysis of the COVID relief bill and provisions impacting nonprofits that helped support this analysis.
Coronavirus Relief Fund
Nonprofit New York recommended Congress extend the Coronavirus Relief Fund (CRF) deadline from 12/30/2020 to late next year. The new legislation extends the deadline for states to spend CRF monies through 12/31/2021.
Paycheck Protection Program
Nonprofit New York recommended Congress enable nonprofits with more than 500 staff to participate in the Paycheck Protection Program (PPP) for the first time and include nonprofits in a second round of PPP loans. The legislation includes:
- PPP second draw loans for nonprofit employers with 300 or fewer employees that demonstrate at least a 25% reduction in gross revenues between the same quarters in 2020 and 2019. The maximum loan amount is $2 million.
- PPP forgivable expenses are expanded to include personal protective equipment, covered supplier costs, facilities modifications, and covered worker protection expenditures. (Section 304)
- 501(c)(6) nonprofits, but not 501(c)(3), with more than 500 employees are now eligible for PPP loans.
Unemployment Insurance Reimbursement for Self-Insured Nonprofits
Nonprofit New York recommended Congress provide 100% coverage of unemployment costs of reimbursing nonprofits and extend the relief into 2021 . The legislation extends the 50% federal coverage of the costs of self-insured “reimbursable” employers through 3/14/2021.
Employee Retention Tax Credit (ERTC)
Nonprofit New York recommended Congress extend and expand the Employee Retention Tax Credit that expires on 12/31/2020. The legislation:
- Extends the ERTC through 7/1/2021 and improves the refundable payroll tax credit by reducing the amount of required year-over-year decline in gross receipts from 50% to 20%, while increasing the credit from 50% to 70% of workers’ “creditable wages” of up to $10,000 for each of two quarters, for a maximum per worker benefit of $14,000.
- Expands full benefit to all employees of employers with 500 or fewer employees; larger employers can apply the credit only to workers who are paid but are not working.
- Provides that employers who receive PPP loans may still qualify for the ERTC with respect to wages that are not paid for with forgiven PPP proceeds.
Charitable Giving Deduction
Nonprofit New York recommended Congress include improvements to the above-the-line charitable deduction in S. 4032/H.R. 7324 (from June 2020) in the COVID relief bill and extend the giving incentive to 2021 . The legislation reestablishes the $300 above-the-line deduction for 2021 and permits a $600 deduction for couples filing jointly in 2021, and extends for one year the increased limits on deductible charitable contributions for individuals who itemize and for corporations.
Funding for New York’s Budget Deficit
Nonprofit New York urged Congress to include funding for New York's $15B budget deficit. The legislation includes an estimated $13B for New York governments through the Education Stabilization Fund ($5.8B), Emergency Transit ($4.2B), aid to NYS Department of Transportation ($426M), relief for airports to operate safely during the pandemic ($105.5M), COVID Health and Vax Effort ($1.6B), and Rent and Eviction Relief ($1.4B), Emergency Childcare Grants ($465M), and FEMA Disaster Relief Fund ($1B).
Resources for all New Yorkers
Nonprofit New York has consistently made it clear that Congress should include relief for all New Yorkers regardless of immigration status, including undocumented immigrants, DACA and TPS recipients, as well as mixed-status families . While not all New Yorkers are eligible for relief, this legislation allows mixed-status families to receive stimulus checks. We applaud the inclusion of mixed-status families as a step in the right direction to support all New Yorkers.
Additionally, Nonprofit New York is pleased Congress allocated $15 billion nationally to “Save Our Stages” dedicated to relief for Broadway, music venues, and other cultural institutions.
Nonprofit New York thanks Senator Schumer, Senator Gillibrand, Congresswoman Velazquez, Congresswoman Maloney, Congresswoman Meng, and the entire New York Congressional Delegation for working closely with nonprofits over the past several weeks, meeting with us, and identifying policy solutions to support all New Yorkers.
Contact: Chai Jindasurat, Policy Director, [email protected].
 Under the CARES Act, employers who self-insure will only receive 50% reimbursement for their unemployment insurance claims, unless New York State provides an additional 50%. Before COVID-19, many nonprofits may have chosen to self-insure as the most prudent unemployment insurance option, however during this time of crisis we need to support our nonprofit workers.
 The expanded “above the line” giving by $300 for 2020 does not go far enough to encourage charitable giving for organizations heavily dependent on individual donors. Following the 2008 recession, charitable giving dropped by $42 billion nationally (See: Stanford Center on Poverty and Inequality and the Russell Sage Foundation, 2012. Charitable Giving and the Great Recession).
 New York State is home to 4.4 million immigrants, who are a vital part of our state’s social fabric and economy (See: New York Immigration Coalition, 2019. Blueprint for Immigrant New York). Federal actions to date have excluded undocumented immigrants from accessing relief and assistance.