Over the past two years, COVID has had a drastic impact on our lives, livelihood and economy contributing to a loss of jobs, security, and nearly one million lives nationally. While we take a moment and reflect on what was lost during this time, it is important to celebrate what we’ve been able to accomplish together.
At the beginning of the pandemic, Goodwill Industries International reached out to other charitable nonprofits and the #Relief4Charities Coalition was created. The coalition has successfully advocated for the expansion of federal funding and programs to benefit nonprofits. Larger nonprofits were able to continue to provide critical mission services with receipt of Paycheck Protection Program funds, employees were able to keep their jobs with support from the Employee Retention Tax Credit, states and localities have utilized American Rescue Plan Funds to partner with nonprofits to provide workforce development and job training services, and individual donors have received an incentive to give to charities via a universal deduction regardless of whether they itemize.
However, many nonprofits still face challenges. Recently, the coalition sent a letter signed by 60 national nonprofits and more than 1,300 state and local organizations to President Joe Biden and Congressional leaders, urging them to advance policy priorities that will help charitable organizations overcome the unique challenges they are facing as they struggle to serve communities through one of our nation’s most challenging public health and economic crises.
Today, many charitable entities are experiencing unprecedented workforce shortages – including 450,000 fewer employees than before the pandemic – forcing them to restrict needed services, institute waiting lists, or close operations entirely. Further, after the pandemic is contained, the public will continue to rely on charitable organizations to help them recover through services such as education and healthcare, social services, and cultural and faith engagements.
According to the letter: “The charitable nonprofit sector is the backbone of our communities. We continue to face unprecedented challenges as we assist you and the American people in providing pandemic relief and economic recovery. We ask you to come together in prioritizing and passing the legislative proposals identified as critical to the support and efficacy of the nonprofit charitable sector.”
The letter detailed policy solutions to help nonprofits generate resources to meet the needs of those they serve, including:
- Providing charitable giving incentives by renewing the universal charitable (non-itemizer) deduction at least through 2022 and significantly increasing the cap on the deduction as proposed in the bipartisan Universal Giving Pandemic Response and Recovery Act (S.618/H.R.1704)
- Addressing critical staffing shortages by restoring the Employee Retention Tax Credit as proposed in the bipartisan ERTC Reinstatement Act (H.R. 6161/S. 3625), extending the credit through 2022, and allowing it to be used to support childcare and education subsidies.
- Infusing funds into the nonprofit community to get people back to work by including core components of the Work Opportunities and Resources to Keep Nonprofit Organizations Well, or WORK NOW Act (S. 740.H.R. 1987).
- Providing sustainable, robust investments in childcare to ensure livable wages and skills-based training for providers and ensure the retention of quality candidates, while
- expanding access to high quality care that is affordable and dependable.
Thank you to the advocates who have amplified our messages, and provided the data and stories needed to education lawmakers over these past two years. Stay tuned for additional ways to support our efforts as there is more work to be done!
