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Dec 21, 2020
Posted Under: COVID Nonprofit News

The Consolidated Appropriations Act of 2021 (omnibus spending and COVID relief bill)  is now available online. Foraker has been working closely with the National Council of Nonprofits to understand how organizations will be impacted by the legislation. The National Council has issued a preliminary analysis, which you’ll find here. We appreciate their very prompt action to bring the sector this information.

The legislation runs 5,593 pages and spends more than $2.3 trillion. The National Council chart provides page numbers for deeper analysis on issues important to nonprofits. As Foraker and the National Council continue to review the legislation, we’ll fine-tune this analysis and post it on our website.

A few important highlights for nonprofits include:

  • Charitable Giving Incentives: Reestablishes the $300 above-the-line deduction for 2021 and applies a $600 deduction for couples filing jointly in 2021; imposes a penalty for overstating contributions. The bill also extends for one year the increased limits on deductible charitable contributions for individuals who itemize and for corporations.
  • PPP Reforms
    • Forgiveness: Expands forgivable expenses to include the costs of PPE, workplace modifications; short-form approval of loans of $150,000 or less.
    • Second Draw Loans: Charitable nonprofits may qualify for an additional PPP loan (Second Draw) of up to $2 million if they a) employ 300 or fewer employees and b) experience a decline in gross receipts of 25% in one of the four quarters in 2020 compared to the same quarter in 2019. NOTE: Nonprofit “gross receipt” defined using the tax-law definition and not the arbitrary definition seen in earlier drafts.
  • Economic Injury Disaster Loan Grants: Provides $20 billion for additional $10,000 grants; repeals deduction of EIDL grants from the amount of loan forgiveness.
  • Save Our Stages: $15 billion dedicated to aiding performance venues, independent movie theaters, and cultural institutions.

Read more about additional coverage that includes many nonprofits here. In addition to the provisions outlined in the National Council analysis, the bill funds the federal government through the end of September 2021 and provides many major protections and relief measures including:

  • A $300 boost in weekly unemployment benefits
  • Continuation of expanded unemployment benefits for an additional 11 weeks
  • $600 relief checks per adult and child in households earning up to $150,000 a year
  • More than $330 billion for small business aid
  • Funding for schools, hospitals, and vaccine distribution.

There’s also money for childcare, nutrition, rental assistance, a one-month extension of the CDC eviction moratorium, and a continuation of student loan forbearance.

Please share with us what you are learning about the impacts of COVID relief funding on your organization. We are ready to work with you.