In May, after the rollout of the CARES Act, the House of Representatives proposed and passed a second federal stimulus package. The $3 trillion package called the HEROES Act is slated for an upcoming Senate vote, and if passed, would extend both existing benefits and credits, and offer nonprofits that did not take advantage of the CARES Act the opportunity to apply.
The passing of the CARES Act has allowed for many nonprofits to remain afloat during the COVID-19 pandemic, offering financial relief in the form of reimbursed payroll expenditures, unemployment benefits, employee retention credits, and more. If you were not able to or did not manage to apply for these benefits, the passing of the HEROES Act could give your nonprofit a second chance.
Should the HEROES Act pass the Senate vote, previously unregistered nonprofits will be able to apply for benefits like Payroll Protection Programs, for which coverage would be extended through December 2020.
Some nonprofits were unable to register in the first round due to limitations set by the CARES Act. Under the HEROES Act, PPP benefits are expanded to include nonprofits with more than 500 employees and all 501(c) employers (inlcuding unions, nonprofit news outlets, and housing cooperatives). Additionally, the HEROES Act will remove the affiliation rule used to block nonprofits associated with Planned Parenthood from receiving benefits.
With the future of the pandemic unclear, it may make the most sense for your organization to take advantage of the federal stimulus HEROES Act in order to supplement its resources for the coming months. Here are some more key points of the HEROES Act to talk over with your trusted financial advisors:
Get ahead of the curve. Now is the perfect time to reach out to legal and financial counsel to talk about what the best options are for your organization. If your nonprofit is located in Indiana and looking for trustworthy counsel, we recommend reaching out to Kruggel Lawton CPA for your financial and accounting needs, and SouthBank Legal for all legal matters. Looking for recommendations elsewhere? Feel free to reach out to me for a referral.
We are not attorneys or accountants. We offer ancillary support as nonprofit administration consultants and are happy to help answer all your questions regarding this or other topics relating to nonprofits. Feel free to reach out using our contact form below for answers to your nonprofit questions, or if you simply need a little help getting through this tough period and coming out on your feet.