Nonprofits Applaud #Relief4Charities in American Rescue Plan Act

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Mar 11, 2021, 14:49 ET

WASHINGTON, March 11, 2021 /PRNewswire/ -- The American Rescue Plan Act, now signed into law, includes several provisions of importance to the charitable nonprofit sector. The leading coalition of the nation's nonprofits celebrates many helpful aspects of the law and urges Congress and the Administration to quickly take action to enact further #Relief4Charities:

"The American Rescue Plan Act will provide much-needed relief to many nonprofits on the frontlines of helping people in communities across this country as we continue to deal with the challenges created by the pandemic and economic downturn. The bill builds upon and improves supports that were provided in previous relief packages and addresses a number of the ongoing concerns of our coalition.

"We are glad to see the expansion of the Paycheck Protection Program (PPP) to include some nonprofits with more than 500 employees, many of which serve large metropolitan cities and rural areas. Previous limitations to the PPP cut off many charitable organizations from economic relief over the past year. Newly eligible nonprofits will need time to apply for these funds, so an extension of the program beyond March 31 is essential.

"The bill also increases coverage of unemployment costs charged by states to self-insuring nonprofits. We feel strongly that full and retroactive coverage of these costs remains a necessity. Without full coverage, nonprofits will struggle to dig out from paying unemployment bills of hundreds of thousands of dollars, forcing many to lay off even more employees.

"The inclusion of state and local funding as well as emergency grant funding in the American Rescue Plan Act means nonprofits will receive the support they need to be able to serve local communities at this time of immense need.

"Members of both parties see the need for additional relief, as evidenced this week with the introduction of two new bills, the Universal Giving Pandemic Response and Recovery Act and the WORK NOW Act. We hope these proposals will be swiftly passed on their own or as part of another forthcoming legislative package.

"The nonprofit sector represents the nation's third-largest industry, with pre-pandemic employment of more than 12 million employees at the forefront of helping Americans through these difficult times. These charitable nonprofit organizations provide everything from food and shelter to medical and mental health services to education and cultural and spiritual support. Yet at a time when Americans need these services the most, donations and other earned revenue sources continue to decline while demand for many services continues to grow. Today, nearly one million people who worked in the nonprofit sector remain out of work. We look forward to continuing to work with Congress and the White House on additional much-needed relief so nonprofits can continue to serve people in our communities."