This email contains an important update on the third phase of the federal response to COVID-19, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and the results of the joint MNN-Philanthropy Massachusetts survey, "Ongoing Impacts of COVID-19 on Massachusetts Nonprofits."

Reach out to fmartinez@massnonprofitnet.org with any questions.
The CARES Act: Phase III of the Federal Response
On Friday, March 27, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Below are three significant pieces of this bill that impact nonprofits. For more information on how this federal aid bill will impact nonprofits, read the National Council of Nonprofits’ analysis on the MNN’s blog  here .
  • Emergency Small Business Loans (emergency SBA 7(a) loans): Provides funding for special emergency loans of up to $10 million for eligible nonprofits and small businesses with 500 or fewer employees, permitting them to cover costs of payroll, operations, and debt service, and provides that the loans be forgiven in whole or in part under certain circumstances. Note: These are in addition to the SBA Economic Injury Disaster Loans (EIDL), which are available to nonprofits of any size.
  • Unemployment and Self Insured Nonprofits: Allocates federal funding to states in order to allow states to forgive one half of the costs of benefits provided to their laid-off employees. This is explained in a recent blog article.
  • Federal Charitable Giving Incentive: Includes 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 contributions made in 2020 and would be claimed by donors on tax forms next year.

The federal charitable giving incentive is a big step forward in extending the tax benefit of charitable giving to millions of low and middle income donors, many of whom have never received a tax benefit for giving. MNN supports the expansion of the federal charitable giving incentive, and supports making it permanent.

Nonprofits with questions or input on these or other policies that would be beneficial to their organizations should sign up for an Office Hours appointment with MNN's Director of Government Affairs  Danielle Fleury : click here .
Thank you to all respondents of the MNN- Philanthropy Massachusetts joint survey, "Ongoing Impacts of COVID-19 on Massachusetts Nonprofits." The survey received over 550 responses from nonprofits of all sizes and from all sub-sectors and regions.

Below is a report of responses organized by question.

Is your organization currently being impacted by the COVID-19 pandemic?
Almost all ( 99.5% ) of respondents selected "yes".

Please select any of the following impacts that your organization is experiencing.
Respondents who chose to answer this question selected the following answers at the following rates:
  • Disruption of services to clients and communities: 88%
  • Decrease in revenues: 78%
  • Increased and/or sustained staff and volunteer absences: 44%
  • Increased demand for services/support from clients and communities: 34%
  • Increase in expenses: 25%

If your organization is experiencing a DECREASE in revenues, please select the applicable amount as a percentage of your organization's annual budget.
Respondents who chose to answer this question selected:
  • 0-10% reduction in revenues: 18%
  • 10-20% reduction: 26%
  • 20-40% reduction: 28%
  • 40-60% reduction: 16%
  • 60-80% reduction: 7%
  • 80-100% reduction: 6%

If your organization is experiencing an INCREASE in expenses, please select the applicable amount as a percentage of your organization's annual budget.
Respondents who chose to answer this question selected:
  • 0-10% increase in expenses: 58%
  • 10-20% increase: 23%
  • 20-40% increase: 12%
  • 40-60% increase: 4%
  • 60-80% increase: 2%
  • 80-100% increase: 1%

In which of the following ways is your organization responding to the impacts of the COVID-19 pandemic on its programs, services, and operations?
Respondents who choose to answer this question selected:
  • Shifting programs or services provided to clients to virtual formats (e.g. online, by phone, etc.): 73%
  • Moving major events (e.g. fundraisers, galas) online: 60%
  • Reducing hours/pay of staff: 32%
  • Applying for state and federal emergency loan assistance (e.g., U.S. Small Business Association Federal Disaster Loans): 21%
  • Laying off staff: 20%

Which of the following resources would help your organization respond to the COVID-19 pandemic?
Respondents who chose to answer this question selected:
  • Financial relief (e.g. additional grants or donations): 88%
  • Resources to support remote work and converting in-person events to virtual formats: 53%
  • Learning about the impacts on other nonprofits and/or their responses to the pandemic: 49%
  • Additional information and best practices: 35%
  • Legal guidance on human resources: 29%
Coronavirus and Massachusetts Nonprofits