Emergency Aid for Nonprofits– Call to Action for US Orgs
The governments of Canada, the UK and Australia have announced they will assist nonprofits and small business suppliers with a variety of subsidies and other help. More on that later in this post.
U.S. Organizations Take Action Today
Meanwhile, in the U.S., as we write this on Monday evening the U.S. Senate is coming down the contentious home stretch on a bill that would assist nonprofits and similar legislation will be introduced in the U.S. House of Representatives. Then, the two bills will have to be reconciled and the final legislation signed into law by the President.
Right now while the debate rages in Congress it’s important that your Senators and Representatives hear from as many organizations –and their stakeholders– as possible.
You can make your voice heard by clicking the TAKE ACTION button below .Don’t delay and don’t stop there. Forward this post to your CEO, Board Members, colleagues, vendors and other stakeholders urging them to also take action today Time is very, very short.
Here’s What’s At Stake
- Four months ‘of an organization’s payroll expense (and possibly other costs as well) to be used to meet your operating expenses/payroll from March 1 (retroactively) through June 30.
- This is NOT a loan. As currently drafted it’s an outright grant provided you use all the money to pay for staff (and possibly other expenses) your basic monthly nut. If you hold on to current employees any repayment obligation is completely forgiven.
- If the organization—either nonprofit or for-profit fails to use all the money for staff and operating purposes the part not used for that will become a loan. However, even if some of the money becomes a loan, no collateral, personal guarantees, or organizational guarantees are required The portion that becomes “debt” is guaranteed by the U.S. Government and any repayments will be deferred for a year and probably for very low or no interest.
Too good to be true? Absolutely not. And especially not if we all rally, contact our Senators and Representatives and urge its passage.
Elsewhere in the world governments are generally moving in various ways to aid nonprofits and the small businesses that supply services to them. We haven’t surveyed the world, but urge fundraisers to check on developments in your country.
Emergency Help in Canada, UK and Australia.
CANADA
Nonprofits in Canada along with many of their suppliers/vendors are Eligible for Federal Wage Subsidy. There is new information available on the federal government’s proposed temporary wage subsidy that is part of the economic response plan to counter Canadians’ financial hardships due to COVID-19.
The Canada Revenue Agency has now released a more detailed breakdown of who is eligible and how the subsidy will be implemented.
Here’s what you need to know.
What is the wage subsidy?
Ottawa’s proposed wage subsidy was announced last week and is set to be in place for three months.
It will be equal to 10 per cent of total remuneration paid between March 18, 2020, and June 20, 2020, up to a maximum of $1,375 per worker and $25,000 per employer.
UNITED KINGDOM.
In the UK for charities that have laid off workers the government has put in place a ‘sack and back’ provision giving both nonprofit and for-profit organizations a coronavirus wage subsidy of 80% of employees salaries provided the employees are re-hired.
Under the government’s proposal, as best we can interpret it, organizations must re-hire staff they have laid off to allow workers to take advantage of the government’s scheme – which will cover 80 per cent of earnings up to £2,500 a month and be backdated until March 1.
Employees covered by the scheme would then be “furloughed” and allowed to be absent from work.
The scheme will initially be open for three months.
For freelance folks like copywriters, IT specialists, designers, and other self-employed folks it is likely they will be covered at least through a change in the Universal Credit minimum income floor for everyone affected by coronavirus. This provision is intended to enable self-employed people to access the benefit at a rate equivalent to statutory sick pay for workers. But, as we write this the situation appears subject to change.
As noted, this is the most up-to-date information The Agitator could compile this evening. UK fundraisers should check in with the Institute of Fundraising or the government itself.
AUSTRALIA
The Federal Government’s stimulus package offers support for the nonprofit sector. According to the Fundraising Institute of Australia (FIA) these benefits include:
- charities with paid employees and turnover of up to $50 million annually are eligible for economic support. Approximately 30,000 organizations.
- Support will range from $20,000 to $100,000.
- A 100% increase in the Newstart allowance, alleviating some pressure on charities who assist Australians battling economic hardship.
For Government Economic Support Updates click here. Here’s the Government’s media release.
Roger and Kevin
P.S. US Fundraisers: The Nonprofit Alliance is on top of this emergency legislation in Congress. If you have questions or wish to report any feedback y0u get from Senators and Representatives you can contact Shannon McCracken at smccracken@tnpa.org.