As you evaluate a COVID-19 emergency aid package, I urge you to support charities and nonprofit organizations serving vulnerable people and communities at this time of need. Charities and nonprofits need the following policies to maintain operations, expand scope to address increasing demand and stabilize losses from closures:
1. Expressly include charitable nonprofits in the $200 Billion loan fund for businesses, including airlines. The charitable sector needs an immediate infusion of $60 billion and the loan program is a fast way to get cash in the hands of organizations serving immediate needs in communities, yet facing lost and declining revenue due to the pandemic.
2. Improve the above-the-line charitable deduction by raising the cap to $2,000 and allowing taxpayers to immediately claim the deduction on their 2019 taxes (due on July 15) and afterwards through 2021.
3. Clarify that charitable nonprofits of all sizes are able to participate in the emergency Small Business Loan Program by using the tax-law definition of charitable organizations (Sec. 501(c)(3) public charities) and removing the language excluding nonprofits that receive Medicaid reimbursements.