Policy Alert

COVID Relief Negotiations

Last week, the House passed a revised Heroes Act (Heroes 2) with only Democratic votes.

• Summary
• National Council of Nonprofits Analysis

What is Heroes 2?

• $2.2 trillion COVID relief package that calls for another round of checks to individuals, renewal and extension of unemployment benefits for unemployed workers, and $430 billion in aid to governments
• Calls for the temporary repeal of the cap on the deductibility of state and local taxes
• Provides money for testing, education, election security, the postal service, and targeted relief for airlines, restaurants, and private performance venues​

How does this affect nonprofits?

• Provides forgivable loans to some larger nonprofits left out of prior COVID relief laws
• Calls for improvements to the Main Street Lending Program
  • Includes a low-cost loan option tailored to the needs of nonprofits to provide additional help
• Expands the Employee Retention Tax Credit
  • Provides refundable payroll tax credit that would enable nonprofits to retain and restore employees who are vital to providing service in communities
• Improved Paycheck Protection Program: expands eligibility, streamlines forgiveness processes, and provides access to a second round of forgivable loans
  • Provides relief for mid-size nonprofits
• Extends temporary relief of unemployment costs for nonprofits for 6 months
  • Does not include an approved above-the-line deduction or a nonprofit grants program (WORK NOW Act) to strengthen the ability of charitable organizations to expand employment and advance their mission.
• More information about provisions relating to the nonprofit community here.

Content Credit: National Council of Nonprofits

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2020 Census Extension Efforts

What’s new?

• The federal courts have required the Census Bureau to continue field counts through October 31st
• The administration’s plan to exclude undocumented immigrants from the final count has been rejected.
• The bipartisan 2020 Census Deadline Extensions Act was proposed, mandating the four-month extension of two key deadlines and the extension of Census Bureau field operations through Oct. 31, 2020. Similar outcomes have since been reached through other avenues.
  • This legislation was endorsed by the Idaho Nonprofit Center, National Council of Nonprofits, and more than 200 other organization

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Why support the Census extension efforts?

• The completion of a fair, complete, and accurate count in the 2020 Census affects distribution of political power and federal funding that will impact communities for the next decade.
• ​More information can be found here.

Content Credit: National Council of Nonprofits

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Other Important Updates

• Federal Funding:
  • Last week the President signed the bipartisan Continuing Resolution to extend funding for federal agencies through Dec. 11, 2020, providing funding for much of the federal government and preventing a partial government shutdown. A summary of the resolution can be found here.
• Independent Contractor Rules:
  • On Sept. 25, 2020, the Department of Labor issued a proposed rule that would clarify whether workers are employees or are independent contractors under the Fair Labor Standards Act (FLSA). Regulations would replace an existing multi-factory inquiry with a two-prong test focusing on employee’s exercise of control over their work and their opportunity for profit or loss.
  • The revised “economic realities” test may permit more employers (including some nonprofits) to classify their workers as contractors to avoid paying benefits and payroll taxes.
  • The public can submit comments on this rule until October 26, 2020.

Content Credit: National Council of Nonprofits

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Executive Order (EO) on Combating Race and Sex Stereotyping

What is this order?

• Bans the use of terms such as “critical race theory,” “white privilege,” “intersectionality,” “systemic racism,” and “unconscious bias” in training or materials used by institutions receiving federal funding of any kind
• Could severely limit and curtail diversity and inclusion, sexual harassment, and related EEO training contractors and government grant recipients are allowed to provide their employees.
  
• Breakdown of the EO can be found here

How does this affect nonprofits?

• Nonprofit organizations that currently receive grants or have federal contracts may see new language consistent with the intent of this EO appearing in those contracts or grants to your organization.
  
  
  

Other important information:

• The U.S. Department of Labor launched a hotline to “combat race and sex sterotyping by federal contractors” with a website describing how to report offenders.
• The EO enables employees to file complaints alleging that a Federal contractor “is utilizing training programs in violation of the contractor’s obligations under those orders.”
• The order is effective immediately, however, its specific requirements for Federal contractors apply only to those with Federal contracts entered into 60 days after the date of the order (Nov. 21, 2020)

The Idaho Nonprofit Center has signed a letter in opposition to the EO as part of our advocacy efforts and in alignment with our diversity, equity, and inclusion strategic initiative.

Content Credit: Independent Sector
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