As a nonprofit accrediting body that supports best practices across the country, the Council on Accreditation (COA) is calling on Congress to support $60 billion in emergency stimulus funding and emergency small business loans for nonprofits. Nonprofits compose a significant portion of the social safety net who provide critical supports during times of crisis. Without this financial assistance, nonprofits will be at risk of engaging in mass layoffs and potentially closing their doors resulting in millions of Americans losing access to essential services.
As part of the accreditation process, organizations must demonstrate sound financial management practices as this has a definitive relationship with their ability to deliver mission-driven services. Without critical financial support, this ability will be compromised, at a time when Americans need these services the most.
To mitigate the impact of COVID-19 on nonprofits, stimulus funding must:
- Expressly provide charitable nonprofits with $60 billion in emergency funding. The sector needs an immediate infusion of $60 billion and a mechanism must be constructed for a rapid infusion of cash to those organizations serving immediate needs in communities facing lost and declining revenue due to the pandemic.
- Ensure all nonprofits qualify for new, emergency small business loans. Remove the Medicaid exclusion and 500 employee caps on nonprofits.
- Create a robust universal charitable deduction. Allow post March 1, 2020 donations to be claimed on 2019 and future tax returns. Incentives for immediate charitable giving would ensure a rapid infusion of cash to those organizations serving immediate needs in communities facing lost and declining revenue due to the pandemic.
In this unprecedented time, Congress has recognized the emergency financial needs of private business by developing this trillion-dollar financial stimulus package. Congress must now recognize this same emergency financial need for vulnerable nonprofit organizations. Americans are expected to have increased need for vital services as a result of the COVID-19 pandemic, with anticipated rises in substance use, domestic violence, homelessness, and hunger. By financially supporting nonprofits during this time, Congress will be supporting all Americans who require access to essential services.
COA is asking our network to immediately contact your representatives/senators today and tell them to support $60B in emergency stimulus funding and emergency small business loans for nonprofits.
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Thank you for your help!