Assistance to Nonprofits Sample Clauses

Assistance to Nonprofits. Background: Nonprofits have faced significant challenges because of the pandemic, including increased demand for services and changing operational needs.221 Prior to the pandemic, the median U.S. nonprofit reported that it had six months of cash on hand.222 This varied by sector, however, with some sectors like disaster relief organizations reporting a median of 17 months cash on hand, and others, like mental health and crisis intervention organizations reporting only three months.223 Evidence suggests that the pandemic has damaged the financial health of nonprofits, with small nonprofits, which tend to rely more heavily on donations than large nonprofits, reporting relatively larger declines in donations — 42 percent versus 29 percent, respectively.224 Among nonprofits that collect fees for services, the median revenue amount collected from such fees fell by 30 percent from 2019 to 2020, with arts organization experiencing a 50 percent decline.225 Nonprofits also experienced significant job losses. While employment in the nonprofit sector has recovered from its low point in 2020, as of November 2021, 221 See, e.g., Federal Reserve Bank of San Francisco, Impacts of COVID–19 on Nonprofits in the Western United States (May 2020), https:// xxx.xxxxx.xxx/xxxxxxxxx-xxxxxxxxxxx/xxxxx/ impact-of-covid. 222 Philanthropy and COVID–19: Measuring one year of giving, Candid and the Center for Disaster the sector remained 485,000 jobs below its pre-pandemic level.226 In addition, some nonprofits may have experienced declines in volunteer staffing during the pandemic.227 At the same time, nonprofits provide a host of services for their communities, including helping Americans weather the multitude of challenges presented by the pandemic. The ARPA and the interim final rule recognized this dichotomy—nonprofits as entities that have themselves been negatively impacted by the pandemic and as entities that provide services that respond to the public health and negative economic impacts of the pandemic on households and others —by creating two roles for nonprofits. First, under Sections 602(c)(1)(A) and 603(c)(1)(A), recipients may ‘‘respond to the public health emergency or its negative economic impacts,’’ by, among other activities, providing ‘‘assistance to

Assistance to Nonprofits. Nonprofits have faced significant challenges due to the pandemic’s increased demand for services and changing operational needs, as well as declines in revenue sources such as donations and fees. Nonprofits eligible for assistance are those that experienced negative economic impacts or disproportionate impacts of the pandemic and meet the definition of “nonprofit” – specifically that are 501(c)(3) or 501(c)(19) tax-exempt organizations.