Animal welfare nonprofits should know about the benefits of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) recently passed. For the first time, nonprofits are being extended the same critical resources given to (other) small businesses in a time of crisis.
The CARES Act includes two new key benefits nonprofits should consider:
The Paycheck Protection Program, a loan program to keep people employed through federal aid, can help you avoid laying off staff or defaulting on critical costs if your revenues are dropping. Here’s how it works:
For organizations with fewer than 500 employees, Small Business Association loans are available to cover salaries, benefits, debt or mortgage interest, rent, and utilities, including costs from February 15 to June 30.. So long as the organization follows the rules and maintains its workforce (or brings back staff already laid off before March 26th by June 30th), the loan will be forgiven, essentially turning it into a grant. This can be a game changer for you if your organization is struggling to stay open.
The CARES Act allows even people who take the standard deduction on their 2020 taxes to deduct $300 ($600 for couples) more from their taxes. For those who do itemize, the Act lifts the cap on what they can deduct. Broadcast this benefit to your donors and you should see more gifts!