Last month the U.S. government worked around the clock to pass legislation offering relief to individuals and businesses in light of the COVID-19 pandemic.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed and signed into law on March 27 and offers relief to nonprofits and educational institutions in the form of SBA Loans, Temporary Universal Charitable Deductions, Direct Emergency Aid to Students, and more.
All nonprofits should take advantage of the SBA funding programs in the CARES Act. In particular, the Paycheck Protection Program (“PPP”) is a loan that essentially becomes a grant if you maintain your payroll at 75% or higher. Talk to your bank as they will be disbursing the funds directly on behalf of the SBA.
The other attractive funding option for nonprofits, enhanced by the CARES Act, is an Economic Injury Disaster Loan (“EIDL”). If your nonprofit is in a declared disaster area, you may be eligible for a loan of up to $2 million with extremely favorable terms. Additionally, you can request a $10,000 advance which does not need to be repaid, essentially becoming a grant. The advance is supposed to be deposited in your bank account within 3 days, which can be an immediate lifeline for many nonprofits.
” Nonprofits must take advantage of the unprecedented funding programs offered in the CARES Act. While initially applying for these programs was difficult, the process has become very quick and easy. Extremely critical that you submit your application(s) ASAP though! The CARES Act set aside $349 billion dollars for these programs on a first come first served basis. While that is a huge sum of money, it is anticipated to not last long.
Moving forward with your annual fundraising events on a digital platform is extremely important to stay afloat, but we also understand that even the most resilient organizations need more than crisis relief fundraising efforts to keep staffing secure and continue offering their vital services. There are several benefits in the CARES Act that nonprofits should take advantage of as soon as possible.” – Chris Smith, GiveGab’s Chief Financial Officer
Below you will find insightful articles outlining the steps you can take to get financial support for your organization during this time as you navigate through the CARES Act (Summary Here) and determine what relief will benefit your organization during this time of crisis.
How Nonprofits Can Apply for Loans and Other Emergency Benefits
By Dan Parks and Michael Theis, The Chronicle of Philanthropy
The Chronicle of Philanthropy’s article titled, How Nonprofits Can Apply for Loans and Other Emergency Benefits, discusses the benefits now available to qualifying organizations through this stimulus package.
“Nonprofits interested in taking advantage of new emergency loans and other aid programs should get their papers in order, contact their local FDIC-insured bank, and prepare to move quickly, nonprofit policy experts say.”
How Nonprofits Will Receive CARES Act Funding
Published By InsideCharity
Inside Charity’s article on How Nonprofits will Receive CARES Act Funding outlines the most relevant questions that nonprofits may have about the SBA Paycheck Protection Program and their eligibility requirements around applying for this funding. Additionally, they have published an article dedicated to walking nonprofits through the Paycheck Protection Program (PPP) Application.
“501(c)(3) nonprofit organizations, along with small businesses, 501(c)(19) veterans organizations, and tribal businesses, are eligible to apply for the Small Business Administration’s Paycheck Protection Program. Through this program, a nonprofit organization can apply to an SBA-approved lender for a loan of up to 250% of your average monthly payroll costs to cover eight weeks of payroll as well as help with other expenses like rent, mortgage payments, and utilities.”
Their article also links out to helpful resources around this subject such as this Senate CARES Act Questions & Answers document.
Coronavirus Aid, Relief, and Economic Security Act CARES Act (Pub. L. 116-136)
Published by National Council of Nonprofits
National Council of Nonprofits’ article on Coronavirus Aid, Relief, and Economic Security Act CARES Act dives into some of the significant provisions coming out of this legislation and its impact on nonprofits currently facing financial hardship at this time such as:
“Charitable Giving Incentive: Creates a new above-the-line deduction (universal or non-itemizer deduction that applies to all taxpayers) for total charitable contributions of up to $300. The incentive applies to cash contributions made in 2020 and can be claimed on tax forms next year. Section 2204. The law also lifts the existing cap on annual contributions for those who itemize, raising it from 60 percent of adjusted gross income to 100 percent. For corporations, the law raises the annual limit from 10 percent to 25 percent. Food donations from corporations would be available to 25 percent, up from the current 15 percent cap. Section 2205.“
Included in this article is an analysis of the Cares Act as it applies to nonprofits available here.
CARES Act: How to Apply for Nonprofit Relief Funds
Published by Independent Sector
In their article, “CARES Act: How to Apply for Nonprofit Relief Funds”, Independent Sector provides nonprofits with important tips when navigating resources now available to them through this legislation. This article also breaks down these resources based on the size of your organization as well as provides answers to the “Top 11 Questions about Relief for Nonprofits under the CARES Act.”
“With nonprofit organizations scrambling to determine how the Coronavirus Aid, Relief and Economic Security (CARES) Act will apply to them, Independent Sector has teamed with Washington Council Ernst & Young, a DC-based lobbying firm with deep expertise in the nonprofit sector, and Sheppard Mullin, a national full-service law firm with a dedicated Nonprofit Team. This resource will help nonprofit organizations understand how the CARES Act will apply to them and how to proceed with filing for assistance.”
COVID-19 Response Legislation Resource Page
Published by CASE
CASE (Council for Advancement and Support of Education) has developed a resource page dedicated to the CARES Act legislation and how it applies to educational institutions.
“As governments take legislative and regulatory action to address the COVID-19 pandemic, CASE is actively advocating for relief for educational institutions and advancement offices. CASE will post the latest summaries, resources, and alerts on this page.”
Also included on this resource page is a link to a Summary of Higher Education Provisions in H.R. 748, The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided by The American Council on Education.
These are trying times for nonprofits and educational institutions across the country and GiveGab is doing our part to offer relief to nonprofits in need of crisis fundraising solutions by making our peer-to-peer fundraising suite and our custom Community Giving platform available at for no subscription cost for an extended time.
Looking for more information? We have compiled resources for your organization regarding COVID-19 relief initiatives, online fundraising best practices, and free fundraising tools.