The new stimulus bill – what’s in it for philanthropy?

Alison O’Carroll, JD, MBA, Director and Philanthropic Counsel

Congress passed a new $900 billion pandemic relief package last night (Monday, December 21), which is expected to be signed by President Donald Trump in the coming days. The total bill is huge, substantively and literally, coming in at 5,593 pages. In addition to pandemic relief, it also includes funding for the United States government through next fall and “thousands of pages of other end-of-session business.”

While additional details and information will emerge in coming days, here are the key provisions impacting nonprofits and the people they serve, according to The Chronicle of Philanthropy:

• Direct payments of $600 to individuals ($1,200 to couples) for those with 2019 adjusted gross incomes of $75k or less ($150k for couples), with an additional $600 payment per dependent child.

• Additional unemployment benefits of $300 per week through March 14, 2021.

• Moratorium on evictions extended for one month (through the end of January) and $25B in assistance to renters.

• Extension of certain charitable deduction benefits under the CARES Act for “qualified contributions” for an additional tax year (2021), including:
  • Above-the-line charitable deduction – $300 for individuals and $600 for couples
  • Deduction limit for individuals – remains at 100% of adjusted gross income instead of reverting to 60%
  • Deduction limit for corporate charitable giving – remains at 25% of taxable income instead of reverting to 10%.

*NOTE: these benefits are NOT applicable to gifts to donor-advised funds but are for gifts to other Community Foundation funds, including the Greater Atlanta COVID-19 Response and Recovery Fund.

• The Paycheck Protection Program (known as PPP) received additional funds. Nonprofits are eligible but selection criteria are tighter than last time, including a requirement that recipients show they have had at least a 25% drop in revenue from 2019.

• $15B in relief is provided for live venues, independent movie theaters and cultural institutions, which must also show the 25% revenue drop.

For more details, read the full article in The Chronicle of Philanthropy (please note that this is pay-walled content).