How does the CARES act affect nonprofits?
The COVID-19 pandemic has in some way touched virtually every part of our lives. From the way that we work, play, learn and interact, so much has and will continue to change. Nonprofits have not been spared from the implications of the COVID-19 pandemic.
Volunteerism that supports much of the nonprofit world has fallen flat; two-thirds of individuals who would normally volunteer decreased their philanthropy hours or stopped altogether. As the world turned virtual, opportunities disappeared or shifted online, which presented accessibility issues for those without internet or those who were unable to serve in a remote capacity. What’s more, the ability to interact personally with people, one of the most rewarding parts of service, has ceased almost entirely for more than a year.
Thankfully, volunteers have signaled a desire to resume their service when it is safe, as indicated by a Fidelity Charitable report.
Apart from lack of access to volunteers, funding also dramatically decreased, as an economic recession, accompanied by financial uncertainty, has gripped most of the country. Despite donations being a safe alternative to demonstrating support, rather than in-person volunteering, many personal and business wallets were stretched thin.
Despite all the limitations stemming from the pandemic for nonprofits, many organizations continue to be leaders in their communities, providing needed care locally in the form of health safety information, personal protective equipment (PPE) or online social interaction.
The nonprofit sector received some vital support through the Coronavirus Aid, Relief and Economic Security Act or CARES Act, signed into law on March 27. The $2.2 trillion stimulus bill provided important help in the form of donations and operational revenue for nonprofits. The CARES Act of 2020, as well as the Consolidated Appropriations Act and the American Rescue Plan Act of 2021, includes provisions to help nonprofits survive during the period of uncertain economic and health conditions. For example, along with the standard Paycheck Protection Program for nonprofits and their employees, CARES lifted the tax deductible limitations on charitable contributions by individuals and corporations.
Throughout the COVID-19 pandemic, the Venverloh Family Foundation has increased our grants to our partner organizations.
We believe that crises present opportunities to double down on our core values, and we are proud to support our beneficiaries through these difficult circumstances as they each serve as leaders across the globe, helping their communities persevere safely through the pandemic.