philanthropy.com 22 Dec, 2020 04:00 am

Nonprofits Win Extended Charitable Deductions and Paycheck Protection Loans in Stimulus Bill

Nonprofits Win Extended Charitable Deductions and Paycheck Protection Loans in Stimulus Bill
However, the loans in the new $900 billion measure that Congress is poised to enact would come with narrower eligibility criteria than in the previous stimulus law.

Congress is poised to enact new stimulus legislation with key benefits for nonprofits, including an extension of the temporary charitable deduction available to people who don’t itemize their taxes and another round of forgivable Paycheck Protection Program loans.The bill would provide $284 billion for Paycheck Protection Program loans.Under the stimulus legislation enacted in the spring, businesses and nonprofits with up to 500 employees (counting all full-time and part-time employees equally) were eligible for Paycheck Protection Program loans.Paycheck Protection Program loans are generally forgivable if organizations can avoid layoffs and salary reductions.

Negotiators included a provision for the second round of Paycheck Protection Program loans specifying that recipients must show they have had at least a 25 percent drop in revenue to qualify.4 billion in Paycheck Protection Program loans in the first round of the program to support payroll expenses for at least 747,570 workers.

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