CARES Act Benefits; Annual Meetings; Central Mass. Funders
March 28, 2020 Mass. Nonprofits to benefit from Coronavirus Aid, Relief, and Economic Security Act... How Massachusetts nonprofits can hold upcoming annual meetings... Online funders' meeting April 1 for central Mass. nonprofits.
Mass. Nonprofits to Benefit from Coronavirus Aid, Relief, and Economic Security Act
Massachusetts nonprofits, like counterparts elsewhere, can take advantage of provisions of the benefits included in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which was signed into law on Friday. Among them:
Loans. Nonprofits with 500 or fewer employees (counting all full-time and part-time employees equally) will be eligible for Small Business Administration (SBA) loans of up to $10 million. Nonprofits are also eligible for expedited loans of up to $1 million. The money would have to be used for payroll, including paid leave, as well as health-insurance premiums, facilities costs, and debt service.
Loan forgiveness. Nonprofits that keep their employees on the payroll from February 15 to June 30 could have their loans forgiven, turning the loan into a grant.
Economic Injury Disaster Loans. Creditworthiness requirements are waived for all applicants to this SBA program. Those eligible will be able to get checks for $10,000 within three days.
Fundraising via individuals. Taxpayers who do not itemize deductions on their federal tax filing will be able to deduct up to $300 in cash giving for the 2020 tax year. Taxpayers who do itemize deductions, the cap on annual giving rises from 60% of adjusted gross income to 100%.
Fundraising via businesses. For corporate charitable giving, the bill raises the annual limit from 10% to 25% of taxable income.
How Massachusetts Nonprofits Can Hold Upcoming Annual Meetings
In addition to the many existential consequences Massachusetts nonprofits are confronting stemming from the coronavirus crisis is how to hold annual meetings, which state law requires, many of which were to be held this spring.
According to an alert issued last week by the Boston law firm of Hemenway & Barnes:
Massachusetts nonprofits that are membership organizations must have a majority of members physically attend the meeting or submit a valid proxy.
Board of directors meetings may be held by conference call %ndash; as long as everyone on the call can hear each other at the same time.
Nonprofits should review their articles of organization and by-laws to make sure they take right steps to holding and taking action at a valid member or board meeting.
For actions that were scheduled for the annual meeting of a membership organizations that cannot be delayed, "the meeting will need to move forward as prescribed by law in the organization's by-laws, with enough members voting by proxy to meet the quorum requirements
Online Funders' Meeting April 1 for Central Mass. Nonprofits
Nonprofits are invited to participate in an online conference call from 2 p.m. #147; 3 p.m. on April 1 with funders located in, or funding in, that part of the state. The will provide a brief state-wide context, including data from a recent poll of nonprofits; exchange information about how funders in North, Central Massachusetts are responding to the pandemic; and explore possible shared action steps. See details.
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