The stimulus bill expected to pass through Congress has implications for nonprofits as well as individuals. According to the Chronicle of Philanthropy, here are the chief benefits:
- For those who itemize deductions, the cap on annual giving will rise from 60 percent of adjusted gross income to 100 percent.
- For corporations, the charitable giving annual limit increases from 10 percent to 25 percent of taxable income, and the cap on deductibility of food donations will increase from 15 percent to 25 percent of taxable income.
- Nonprofits with 500 or fewer employees will be eligible for Small Business Administration loans of up to $10 million; those that keep their employees on the payroll from February 15 to June 30 could have their loans forgiven, turning the loan into a grant.
- Nonprofits are also eligible for expedited loans of up to $1 million—funds are to be used for payroll, including paid leave, health-insurance premiums, facilities costs, and debt service.
Read more about the stimulus bill benefits here.