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CARES Act for Nonprofits – What’s in the Bill For Charities?

CARES Act for Nonprofits Charities Stimulus

CARES Act for Nonprofits – Friday, March 27, the Congress passed and the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion economic stimulus package legislated to provide immediate relief for nonprofits, businesses, individuals and state and local governments.

CARES Act for Nonprofits – What’s in the Legislation For Charities?

The CARES Act provides significant funding for 501(c)3 organizations. Here’s an overview of benefits:

Paycheck Protection Program Loans (emergency SBA 7(a) loans): Creates an emergency loan program providing loans of up to $10 million for eligible nonprofits and small businesses, permitting them to cover costs of payroll, operations, and debt service, and provides that the loans will be forgiven in whole or in part under certain circumstances. Section 1102.

  • Date Eligibility: Available to entities that existed on February 15, 2020 and had paid employees or paid independent contractors.
  • Charitable Eligibility: Available for nonprofits with 500 or fewer employees, counting each individual – full time or part time (not including Full Time Equivalents [FTEs]). The law does not disqualify nonprofits that are eligible for payments under Title XIX of the Social Security Act (Medicaid), but does require that employees of affiliated nonprofits may be counted toward the 500 employee cap, depending on the degree of control of the parent organization.
  • Personal Guarantee: No personal guarantee or collateral will be required in securing a loan.
  • Loan Amount: The lesser of $10 million or 2.5 times the average total monthly payroll (including benefits) costs from the one-year period prior to the date of application.
  • Loan Use: Loan funds can be used to make payroll and associated costs, including health and retirement benefits, facilities costs, and debt service.
  • Loan Liability: Employers that maintain employment for the eight weeks after the origination of the loan, or rehire employees by June 30, would be eligible to have their loans forgiven, essentially turning the loan into a grant. Section 1106.


Economic Injury Disaster Loans (EIDL): Creates emergency grants for eligible nonprofits and other applicants with 500 or fewer employees enabling them to receive checks for $10,000 within three days. Section 1110.

Self-Funded Nonprofits and Unemployment: Only reimburses self-funded nonprofits for half of the costs of benefits provided to their laid-off employees. Some charitable nonprofits pay state unemployment taxes (SUTA) like other businesses. These organizations pay quarterly taxes based on their “experience rating,” a formula based on the recent history of unemployment claims by their former employees. Charitable nonprofits have the option of electing of self-insuring rather than paying SUTA. Nonprofits that elect to take this option are required to reimburse their state unemployment insurance trust funds for the amount of benefits their terminated or laid off employees claim. Section 2103.

Charitable Giving Incentive: Creates a new above-the-line deduction (universal or non-itemizer deduction that applies to all taxpayers) for total charitable contributions of up to $300. The incentive applies to cash contributions made in 2020 and can be claimed on tax forms next year. Section 2204. The law also lifts the existing cap on annual contributions for those who itemize, raising it from 60 percent of adjusted gross income to 100 percent. For corporations, the law raises the annual limit from 10 percent to 25 percent. Food donations from corporations would be available to 25 percent, up from the current 15 percent cap. Section 2205.

Employee Retention Payroll Tax Credit: Creates a refundable payroll tax credit of up to $5,000 for each employee on the payroll when certain conditions are met. The entity had to be an ongoing concern at the beginning of 2020, experienced a whole or partial shutdown, and had seen a drop in revenue of at least 50 percent in the first quarter compared to the first quarter of 2019. The availability of the credit would continue each quarter until the organization’s revenue exceeds 80 percent of the same quarter in 2019. For tax-exempt organizations, the entity’s whole operations must be taken into account when determining eligibility. Notably, employers receiving Paycheck Protection Program loans would not be eligible for these credits. Section 2301.

Delayed Payment of Payroll Taxes: Allows employers to delay payment of the employer portion payroll taxes in 2020; payable in equal halves at the end of 2021 and 2022. Section 2301.

Economic Stabilization Fund: Creates a loan and loan guarantee program for industries like airlines to keep them solvent through the crisis. It sets aside $454 billion for “eligible business” which is defined as “a United States business that has not otherwise received economic relief in the form of loans or loan guarantees provided under” the legislation. It is expected, but unclear, whether charitable nonprofits qualify under that definition for stabilization loans. Mid-sized nonprofits and businesses that have between 500 and 10,000 employees are expressly eligible for loans under this provision. Although there is no loan forgiveness provision in this section, the mid-size business loans would be charged an interest rate of no higher than two percent and would not accrue interest or require repayments for the first six months. Nonprofits accepting the mid-size business loans must retain at least 90 percent of their staff at full compensation and benefits until September 30.  Section 4003.

VISIT HERE to download entire bill, H.R. 758, from Congress.gov (854 pages).


Additional Benefits

Direct Payments to adults of $1,200 or less and $500 per child ($3,400 for a family of four) to be sent out in weeks. The amount of the payments phases out based on earnings of between $75,000 and $99,000 ($150,000 / $198,000 for couples). Section 2201.

Expanded Unemployment Insurance: Includes coverage for workers who are furloughed, gig workers, and freelancers. Increases payments by $600 per week for four months on top of what state unemployment programs pay. Section 2104.

Amendments to the New Paid Leave Mandates: Lowers the amounts that employers must pay for paid sick and family leave under the Families First Coronavirus Response Act* (enacted March 19) to the amounts covered by the refundable payroll tax credit – i.e., $511 per day for employee sick leave or $200 per day for family leave. Sections 3601 and 3602.

Significant Spending: The law also calls for large infusions of cash to the following sectors:

  • $150 billion for a state, tribal, and local Coronavirus Relief fund
  • $130 billion for hospitals
  • $30 billion for education
  • $25 billion for transit systems

Legislative Resources


CARES Act for Nonprofits – Charity Stimulus Package was adapted from National Council of Nonprofits’ Initial Analysis of the Coronavirus Aid Relief and Economic Security Act

For more articles like CARES Act for Nonprofits – Charity Stimulus Package VISIT HERE

Inside Charity content and comments are for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. All content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing on this site constitutes professional and/or financial advice, nor does any information on the site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto.

Share and Enjoy !

Jimmy LaRose
Jimmy LaRose
Jimmy LaRose’s passion for “people who give” has inspired philanthropists around the world to change the way they invest in nonprofits. His belief that donors are uniquely positioned to give charities what they truly need – leadership rather than money – is the basis for his work with individuals, governments, corporations and foundations, in the U.S., Europe, Asia & Middle East. Jimmy, in his role as author, speaker, corporate CEO & nonprofit CEO champions all of civil society’s vital causes by facilitating acts of benevolence that bring healing to humanity and advance our common good. He and his beautiful wife Kristi are citizens of the Palmetto State where they make their home in Lexington, South Carolina.


  1. Steve says:

    For the Paycheck Protection Program Loans (emergency SBA 7(a) loans), I’ve read different interpretations re: exclusion of employees earning $100,000: does it mean the entire employees’ earnings are disqualified; or does the first $100k apply and just the portion above $100k not apply?

  2. My organization is a 501c3 non profit Homeownership Center specializing in Homebuyer Education, Homeownership Counseling, Foreclosure Mitigation Counseling, Credit Coaching education and counseling. All of these services are free. We also offer below market rental units (no subsidized but we accept Section 8 vouchers), this is the majority of how we sustain the organization. We are a staff of 9. We also have a note with the bank for a 33 unit apartment complex that we constructed. Would we qualify for this type of loan that will qualify for a grant? If so, where do we apply? Thank you.

  3. Lisa says:

    My organization is a 501c3 Community Visual Arts Center – an art gallery, classes and workshops including several for underserved populations. We have a staff of 6 part-timers. We have kept everyone employed but with less hours because we are closed. Would we qualify for this type of loan that will qualify for a grant so we can keep paying our rent and our staff?

  4. Kim says:

    What am I missing on how a non-profit school could qualify for an SBA 7 loan? Everything on the SBA website says to qualify for an SBA loan you must be for profit. I am not seeing any programs through the SBA for non-profits. Any assistance would be great.

    • Gabe Lowe says:

      Hey Kim,

      Sometimes SBA language can be confusing because it often uses the term “owners.” Here’s the good news, SBA considers NONPROFITS to be a business. Why? Because nonprofits are businesses. If you take a deeper look there are all sorts of references to nonprofits on the SBA site e.g.

      “The SBA will work directly with state Governors to provide targeted, low-interest loans to small businesses and non-profits that have been severely impacted by the Coronavirus (COVID-19). The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.”

      PLEASE NOTE: Earlier this month two bills were signed into law that PRECEDED the CARES Act. The Small Business Association HAS NOT updated their site with new information or applications regarding the CARES Act.

      Please watch your inbox for more updates. We’re working with the Small Business Administration to prepare you for next steps.



    • Rena Grant says:

      This is my 2nd year of summercamp with low income family in my community I have 5 full time workers&3 part-time Workers Family are looking for jobs and some are returning back to work they’re looking for a place for there children we are a 501c3 I have no money to help them this year because of the pandemic would we be qualify for a government grant for our low income

    • David says:

      Iess previllage is our concern

  5. Meg Gill says:

    Everything i read says it will take longer to hear about the Paycheck Protection progam so small non-profits should consider filing application for SBA $10k grant and the EIDL loan. If both of those are approved and then the organization is approved for Paycheck protection, do we roll the EIDL and SBA grant into that to have it all be “forgiven” or do they offset the forgiveness?

  6. Edie says:

    My apologies if my questions are uninformed but I need some clarification please. The CARES Act Section 2301; Tax Code Section 3111) states “Certain employers may receive a payroll tax credit of as much as $5,000 per employee for wages (and health benefits) paid after March 12, 2020, and before January 1, 2021. If the credit amount exceeds the employer’s liability, the excess shall be refundable.”
    1) what is meant by a payroll tax credit – is this a credit for future payroll taxes?
    2) is the credit a flat $5K for wages paid OR for taxes paid on those wages?
    3) can you provide an example of the exact calculations for this payroll tax credit?
    Your response will be much appreciated.

  7. I am a director of a Christian camp.
    Will you all cluster information (501c3’s) together in what we should do, where to apply, etc?
    What I mean by cluster is,
    Information for
    1. Churches
    2. Camps
    3. Etc

  8. Terri Shaler says:

    I am the ED of a Michigan nonprofit. We provide food and emergency financial help to low-income families. Including myself there are 7 staff. I plan to keep my staff through this crisis. Is there any other criteria that is not listed above that nonprofits have to have to be eligible for this loan (grant)?

  9. We are a non profit with three thrift stores that funds six other non profits with our profits. Yesterday due to lack of business we had to lay everyone off. All together we had 38 employees. We have lots of overhead even though we are closed due to rents, payments and utilities. Will we qualify for forgiveness loan?

  10. Susanne says:

    Will employees of religious organizations that do not pay into the state unemployment system be eligible for unemployment benefits now through the CARES Act?
    Thank you.

    • Jimmy LaRose says:


      This is a great question. My answer is based on our understanding of our limited understanding of existing unemployment laws that are universal to all 50 states. They are as follows:

      In all 50 states, 501(c)(3) organizations must pay unemployment insurance benefits—and they can do it one of two ways:

      Pay state unemployment insurance (SUI) taxes
      Reimburse the state only for benefits paid to former employees

      If I understand you correctly your organization has opted out of paying unemployment insurance (SUI). Regardless, your organization would still have to pay unemployment insurance fees retroactively to the State if one of your former employees applied and was approved for unemployment.

      Here’s where it gets a little bit more confusing. It’s our understanding that at this particular moment for-profits and nonprofits are exempt from unemployment insurance fees will not have to pay their State SUI taxes for any employees laid off due to our current national crisis.

      So the answer to your question is I don’t know. However, I suspect that your employees may very likely be eligible for unemployment at no expense to you.



  11. Mike Johnson says:

    Question About Loan Amount: The lesser of $10 million or 2.5 times the average total monthly payroll (including benefits) costs from the one-year period prior to the date of application.

    To ensure I understand this correctly is this stating that as a non-profit we will be eligible for 2.5 times the average total monthly payroll of all our employees for an entire year? Am I misreading this?



  12. Pam Patrick says:

    Do you have to complete an application for the EIDL in order to apply for the Paycheck Protection Program loan?

  13. Sandy says:

    As a domestic violence shelter program, some of our salaries are reimbursed by a Dept of Justice grant. How does that affect our application for the EIDL? Our revenue has been negatively affected through two of our programs, and we are thinking that makes us eligible? Can you help clear that up for us? Thank you!

  14. Roy Heggland says:

    Will religious non-profits be subject to any “equal rights” laws if they take a CARES loan from which they are currently exempt on religious grounds

  15. Patty says:

    Our 501 c 3 Museum is run solely by 30 + veterans and volunteers. There are 3 employees that are paid by an outside company as its donation to the museum. All have been temporarily laid off.
    Our income, for the museum’s expenses, comes strictly from tours, grants, events and donations. We had to temporarily close in early March, and cancel events that help us pay our utilities, and recurring bills. We have recently had to cancel our April events as well. With nothing coming in we may last through June. We are Located on the Mississippi River, in Louisiana. Would we qualify for any assistance and/or a loan? We have been open since 2013 and do a lot for veterans in our community, along preserving history from local and regional veterans of WWII. Thank you for this forum where we can ask these questions!

  16. Patty says:

    I need to clarify that my question strictly pertains to keeping the museum open by paying recurring bills and not paying employees.

  17. Kim says:

    What if you are a registered non-profit church but not a 501c3, will you receive benefits?

    • Jimmy LaRose says:


      Our understanding is that churches who do not file a FORM 990 are not eligible for corporate relief. However, your leaders may be independent contractors who may apply as ICs to the Small Business Administration.

  18. We are a 501(c)(3) organization who was shut down for 15 months because a previous landlord broke our lease after we spent $44K fixing up his space. We just recently reopened in a space that while it does not meet all of our needs, does provide the space we need for our essential business. We support all schools, churches, NFPs, daycares, government offices, etc., in the St. Louis County area with resources for creative learning. We also provide an exercise, dance program for children and adults with Down Syndrome. The minute this virus hit, we lost all of our customer base because schools and everything else have been shutdown. We were not open in 2019, so we do not have a 990 for that year, but have been in business for the past 30 years. We have no funds with which to pay our 3 part-time employees or our leasing agreement. Are we eligible for this funding?

  19. We also serve 48 counties in the State of Missouri and 11 counties in the State of Illinois with our resources.

  20. Sherry Kinder says:

    Am I correct in understanding that only 501(c)3 organizations that have PAID staff are eligible. If an organization is all volunteer including full-time members Is there any way they could qualify for operational assistance?

    • Jimmy LaRose says:


      NO…our understanding of the CARES Act allows you to apply for both loans and grants EVEN THOUGH YOU HAVE NO PAID STAFF.

      GRANTS will be made available for utilities and rent. LOANS will be made available to for all other reasonable expenses needed to keep your doors open. Loans will have reasonable interest rates of 2.5%-4% and need to be paid back within five years.

      • If this is so then how do we fill out the form when it says to check 2 and we only have utilities — no rent and no payroll? What does “Other” include? Sorry I asked this before but had no response. Thank you for all you are doing to help us.

      • Kristal says:

        Hello a couple audiors have told me our organization cannot apply for PPP because we do not have any paid employees despite that we have been significantly effected losing 100%of our revenue and continued operating cost. We were hoping to get assistance with rent and utilities during these months we have been forced to shut down. Do you have a specific reference I can site that shows we can qualify? Or any insight on the application and what we enter in under number of employees? Do you know of any other organization with no employees who have qualified. Sorry just looking for any kind of hope for our non profit.

        • Jimmy LaRose says:


          We’re disheartened to share that it has become apparent to us that organizations who do not employ W-2 staff members are not eligible for the PPP Loan program. The loan amount is calculated based on payroll registers. You can use the loan for other bills but cannot receive it in the first place if you have no W-2 employees.

    • I am the CEO of a non profit 501(c) 3, I have no paid employees as we are all volunteers. If my non profit is not eligible for the cares act, am I eligible for a stimulus myself? I am having a difficult time keeping up my rent because of covid 19, we haven’t been receiving donations regularly because of covid 19.

  21. Richard says:

    I pastor a small church. I’m considered a “contract employee” and file my own taxes. I also get a housing allowance. Can you tell me if my being contracted makes any difference.

  22. Bernie Gonzalez says:

    Do Christian schools that do not have 501(c)3 qualify for the loan and can they take credit on salary and expenses paid

  23. Sarah says:

    I’m the executive director for a nonprofit (501c3) community center – pools, gymnasium, fitness center, dance studios and community spaces – and we have a total of 88 employees, but most of them are part time. Our part-time instructors (swim and dance) and our lifeguards work just a few hours a week – so we truly don’t have the fulltime equivalency of that many employees. A total of 13 full time, and probably about 6-8 part time (20 hours/week), plus a myriad of employees who work just an hour or two a week. My question is that all of the small business loans and grants seem to disqualify us for having more than 50 employees. Is there a way to calculate according to fulltime equivalency? Thanks for any help!

  24. James Lipscomb says:

    My charity is a 501(c)(33). However, the majority of our employees are people in other countries. Would my charity be able to borrow to make payroll for all of my employees? We do file a Form 990.

  25. […] Right now, you can be a hero to your non-profit partners and friends. There is a provision for them in the newly enacted CARES Act that provides payroll and other relief to help them keep their doors open. Tell them about it, and help them apply. For more, check out this round-up for of the benefits from Inside Charity. […]

  26. Tricia says:

    I am a director of a nonprofit that helps under intellectually developed children. The majority of our revenue come from our state dept of human services, which I believe gets there funding from Medicaid. Would we still be eligible for PPP?

  27. Sabina E Silkworth says:

    We are a non profit 501c3 that is federally funded. Can we still receive CARES funds?

  28. Sabina E Silkworth says:

    I have read the SBA web page. It does not say how you apply. I read somewhere else that your bank is supposed to assist you. Do you know how we apply and when? Also, any employee earning over $100k is not allowed to be a part of the request, correct? Thank you.

  29. Ana says:

    We are a religious 501(C)(3) exempt from filing form 990. The majority of our programs are overseas. The individuals working overseas are on our payroll, exempt from federal withholding taxes but subject to FICA. Their salaries are reported on form W-2. Would we qualify for grants/loans? If so, would the costs of the compensation/benefits benefits be used for the loan application?

  30. Phil says:

    For the Paycheck Protection Program, how do the affiliation rules for determining the 500 employee limit apply to churches/congregations/parishes? For example, are all parishes in a an area considered affiliated with each other?

  31. John P. McKelligott says:

    Suppose that, before the CARES Act was enacted, a Church furloughed some of its employees. Could the Church recall them and apply for the CARES Act payroll relief loan and still both get the loan and get forgiveness if it complies with the stated conditions for forgiveness?

  32. Chris Crane says:

    First, thanks so much for providing this resource. The questions and comments have been very helpful.
    The EIDL Act refers to eligibility of “private nonprofits.” We are a 509 (a) (2) public charity, exempt under section 501 (c) (3,) which files a 990 every year. Can you provide any guidance with respect to the eligibility of public charities? Thanks.

  33. Chris Crane says:

    Thank you for explaining above in the comments that the SBA considers nonprofits to be businesses.
    We are a PA nonprofit with 5 directors. In an SBA application, who are the owners? Are there no owners? Are the 5 directors 20% owners? Thank you.

  34. Hello ,
    I work for a 501(c3) Conference, Camp & Retreat Center. We have been hit really hard as well as others. We have less than 20 employees that we have sent home weeks ago & now we are wondering if our mission here will with stand this crisis in America. Can you tell me if we will qualify for these loans that will be forgiven?

  35. Duc says:

    Hi Mr. LaRose,

    We are a 501(c)(3 ) nonprofit organization with a mission of providing medical help to countries in Africa. We are based in the USA, we do not have any employees, but we have volunteers and members. Are we eligible for this kind of program? Thanks.

    Be of good cheer. Even though YOU RECEIVE NO PAY there is recourse. (Somewhat complicated BUT REAL)

    Call Lisa Van Zyll to setup an appointment with NANOE. We’ll help you chart a course.



  36. Duc says:


    We are a 501(c)(3 ) nonprofit organization with a mission of providing medical help to countries in Africa. We are based in the USA, we do not have any employees, but we have volunteers and members. Are we eligible for this kind of program?
    What is the applicant doesn’t have a good credit sore. Thanks.

  37. Ashley says:

    I work for a non-profit that has locations across the country. Each sub location is responsible for their own financial means and pay a “field service” to the “parent” organization. At our location, which covers 3 counties, there are less than 500 employees, but if we are viewed as our “corporation” we exceed this amount. My question is this: For organizations that exist in local areas, but do not have complete decision making capabilities in those local areas, but are fiscally responsible for all of the “costs” of operations, and financially support the “parent” company; what does the CARES act consider this to be? Will the local level “child” be able to receive assistance through the CARES Act?

  38. We are a small non-profit that has no employees and is all volunteer run. I viewed the application and it states you must check 2 areas of need. We want to apply for utility needs but pay no rent as our building is with the county on a long-term lease. I do not see how I can check 2 areas if we only have utility needs. What do they consider under “Other” category?

    Thank you for a great site!

  39. Clyde H. Brooks, Chairman

  40. Lyn says:

    We are a 501 (c)(3). We know we are eligible for the SBA PPP loan. We get a portion of our salaries reimbursed by federal and state grants. Will we be allowed to claim these salaries on our state and federal grants if we receive the SBA money and it is forgiven? Will the grants consider that double dipping?

  41. Corey says:

    I serve on the board of a 501c7 “not for profit”, . We operate what is essentially a shooting facility for things like rifle marksmanship, shotgun sports such as skeet and trap and sporting clays. We have various venues that have been closed since this thing started and employees unable to work because of state mandated closures. I see everything mentioning 501c3 so I am unsure if that excludes us or if we fall under that somehow and are eligible for several of these items.

    • Deborah Selvage says:

      Corey, I posed essentially the same questions than 24h hours after you. Please let me know if you hear anything in response.

    • stacie says:

      501c7 is NOT eligible for the PPP. It is eligible for the EIDL – only non-profit charities, veterans programs and tribal affiliations can get the PPP money. Sorry I know a lot of 501c7 that could this as well but a 501c7 is considered a private social club for recreation and not a charity under 501c3 – these are both very different under the IRS code 501c

  42. Jeania Pruehs says:

    Yes, I have a non profit cat rescue- with over 50 cats, I have volunteers but no paid employees.
    Our donations are way down, would we qualify for this.

  43. Deborah Selvage says:

    I’m a trustee with the Eagles Club 588, a Not For Profit organization based on people helping people. Our business which includes a large brick and mortar building and bar, employees (2 full time and several part time) has been fully closed since this began with no money coming in to pay the bills. Do we qualify for any of the programs in this initiative?

    • Corey says:

      No update as of yet for me for the “not for profit 501c7”. The language in the guidelines specifically states 501c3 and the 501c19 so part of me thinks we would not qualify but we did in fact submit an application with our bank last Friday. I don’t think the bank really knew but they did accept the application. I think the part that falls back on us though is if the loan is forgivable and don’t know if the responsibility for that is on us or the bank. I could see the bank saying “yes we gave you the loan but The government is one who decided it’s not forgivable”. Hopefully we get more clarity sometime soon.

  44. Paul Rhodes says:

    Hello, Since 2010 we have been a 501(c)3. I own and operate a Missouri state license no-kill animal shelter/rescue. We have no paid employees, all volunteers. We have always filed a postcard with the IRS and I have not seen any info. based on this type of filing. Does this matter or not? Do we still qualify for any relief? We may not have any paid employees but we still have many mouths to feed, vet care, leases, utilities, etc. with zero revenue coming in from our retail thrift store.

  45. Nathan says:


    We are a 501(C)3 nonprofit made up of 100% volunteers, located in MA. Our major source of income is running pancake breakfasts, which have now been shut down due to the Covid-19. Our organizations single biggest expense is our property tax. Could any of the Cares Act options be used to pay this?

  46. Sue Ruff says:

    We are a nonprofit church applying for the CARES loan and the bank said the owner (someone who owns at least 20%) must sign the loan application. So who would sign this since there is no owner. The pastor is the president and we have a board.

  47. Cynthia Viola Harris says:

    If you have a non-profit and you have not filed all of your paperwork and you have a fiscal. Can you get some support.
    CEO Cynthia Harris

  48. Jeania says:

    We are a 501(c)(3) all cat rescue. We have volunteers but no paid employees.

    We solely rely on donations to keep this Rescue running.
    Do we qualify for the cares act and what lending agency do you recommend us to use.

    Thank you

  49. Natasha Garmany says:

    Hello. We just received our 501c3 on November of 2019 for my non-profit organization-Garmany Tutorial Services where we provide supplemental education resources to at risk/ special needs youth and their families. I have one employee and we are newly developed with no funds right now. Which Care Act option will suit our organization and where would we apply? Thank you.

  50. Natasha L Garmany says:

    Thank you very much Jimmy LaRose!

  51. Paul Rhodes says:

    Hello, Since 2010 we have been a 501(c)3. I own and operate a Missouri state license no-kill animal shelter/rescue. We have no paid employees, all volunteers. We have always filed a postcard with the IRS and I have not seen any info. based on this type of filing. Does this matter or not? Do we still qualify for any relief? We may not have any paid employees but we still have many mouths to feed, vet care, leases, utilities, etc. with zero revenue coming in from our retail thrift store.

  52. Chuck King says:

    We are a non profit 501c3 Filing 990. We have a small number of regular employees, but a large number of seasonal, summer employees. Do I include the seasonal employees in my count when applying

    • Jimmy LaRose says:


      Our understanding is that there is no downside by including seasonal employees especially if your 2019 payroll register and payroll tax liability reflects those hires.

  53. Kent Stuckey says:

    Hello – We are a 501(c)(3) that is a “publicly supported organization described in section 509(a)(2)”. Despite the potentially confusing reference to “public” support, we believe that we can represent “Applicant is a private non-profit organization that is a non-governmental agency or entity”. Do you have a perspective on this?

  54. Jeania Pruehs says:

    We are a non profit 501(C)3 animal rescue with no paid employees, volunteers only but have a lot of four legged mouths to feed, donations are down, and utilities need paid.

    Would we qualify for this?

    • Jimmy LaRose says:


      Our understanding is that the PPP Loan program uses payroll to calculate loan amounts. It may be hard to receive PPP relief funding without payroll. However, there is the Economic Injury Disaster Loan Program that does not seem to rely on Payroll.

      Visit here to learn more: https://covid19relief.sba.gov/#/

  55. […] the Charitable Giving Incentive allows donors to deduct more of their charitable giving and lifts the existing cap on annual contributions for those who itemize, raising it from 60 percent of adjusted gross income to 100 percent. For corporations, the law […]

  56. Scott says:

    Does this bill have anything that provides some kind of help to a non profit addiction program who charges rent (legally called program fees) to residents of the program? For example can the non profit get help so that they can pass it along to the residents who pay this rent? Especially while jobs are either cutting hours or laying people off….

    • Jimmy LaRose says:


      Our understanding is that you are eligible for the Emergency Injury Disaster Loan provided by the Small Business Administration. Visit here to learn more: https://covid19relief.sba.gov/#/

    • Jimmy LaRose says:


      Our understanding is that you can use the PPP Loan for receivables and expenses in addition to payroll, rent & utilities. Any portion of the loan not spent on payroll, rent or utilities will have to be paid back. I know this a bit confusing because your loan amount is calculated based on one month’s payroll multiplied by 2.5. However, should you receive the PPP Loan our understanding is that you can spend it on other bills.

  57. Linda Copp says:

    Is a Not-for-Profit business, a 501 c (8) eligible for the PPP? I’m talking about a fraternal organization such as the Moose Lodge?

    • Deborah Selvage says:

      Linda, I posed this question on 4/2 with no response. Please share any reply you get.

      • Jimmy LaRose says:


        Thank you for your patience. We’ve received hundreds inquiries regarding 501(c)2, 501(c)6, 501(c)7, 501(c)8 etc. We apologize for not getting sharing our responses with you.

        Deborah, the IRS states that 501(c)(8) describes fraternal beneficiary societies, orders, or associations operating under the lodge system (or for the exclusive benefit of the members of a fraternity itself operating under the lodge system)

        We wonder if the writers of the CARES Act bill consider the function of a 501c8 less essential than other types of organizations. Our understanding is that 501c8 organizations are not likely to be eligible for PPP.

    • Jimmy LaRose says:


      The IRS states that 501(c)(8) describes fraternal beneficiary societies, orders, or associations operating under the lodge system (or for the exclusive benefit of the members of a fraternity itself operating under the lodge system)

      We wonder if the writers of the CARES Act bill consider the function of a 501c8 less essential than other types of organizations. Our understanding is that 501c8 organizations are not likely to be eligible for PPP.


    I am on the board of a not for profit 501 c 3 . we got money under the PPP. our auditors are telling us if we get money from grants which also cover some of the Payroll costs for jobs done under the grants, we have to return that money either to the PPP or the grant funder we cannot apply for the waiver for that amount. Is that right? my logi is that if we used our cerdit line to make payroll and then someone donated money to cover that credit line we wouldn’t have to return the money to the grant, why would we have to do that here?

    • Jimmy LaRose says:

      It is our limited understanding of the CARES Act that regardless of WHEN you received your PPP Loan you may apply a portion of those loan monies to payroll YOU FUNDED AFTER April 3rd (the day the bill was signed). It is also our limited understanding that a portion of that will be forgivable.

  59. Team NANOE says:

    One of our members asks:

    “My executive director insists that she applied for the EIDL loan and EEIJG grant in a single application early this month. Is she accurate or mistaken? If accurate, great. If not, where and how does one apply for the grant?”

    • Jimmy LaRose says:

      Good Morning,

      Our experience is close to what your ED experienced. First, we applied for both EIDL Loan and EiDL Grant on April 4th. Second, we received our EIDL $10,000 advance grant about two weeks later. Third, we have no real sense that SBA has ever considered our actual EIDL loan request in any way shape or form (even though we requested a loan April 4th.)

      Does that make sense?

  60. Paul Rhodes says:

    I filed for the Economic Injury Disaster Loan Program over two weeks ago and have not heard anything yet. Is there a way to follow up to check on the status of the application?

  61. james Glarry says:

    we are Christian Organization formed to help people in needs of helps,such as financial help.So if you are going through financial difficulty or you are in any financial mess,and you need funds to start up your own business,or you need loan to settle your debt or pay off your bills,start a nice business, or you are finding it hard to obtain capital loan from local banks,contact us today via email ([email protected]) at 3% interest rates for the bible says””Luke 11:10 Everyone who asks receives; he who seeks finds; and to him who knocks, the door will be opened”So do not let these opportunity pass you by because Jesus is the same yesterday, today and forever more.Please these is for serious minded and God fearing People…Regards Management E-mail : ([email protected])

  62. Thank you for sharing this information about cares act for nonprofits. It was useful and interesting. You indeed have written it in a layman way so that anyone can understand and work accordingly. You have done a great job… Great post!!

  63. Chris says:

    Hello- It’s November 2020 and at this time of the year I usually do my charitable contributions. My local library, theater, public TV among others. In 2019, I didn’t have enough to deduct to itemize, so I took the standard deduction. Now with the Cares act, I understand that you can take the standard deduction PLUS up to $300 in charitable donations. My problem is, how can I determine if my local library, theater, public TV are considered to be qualifying charities?

    Thank you.

  64. Jeremy Brandt says:

    I’m the president of a local 501c8 organization. The majority of our profits go to paying our monthly bills, food costs, taxes and 8 hours weekly for an employee. The majority of our lodge is operated and managed via member volunteers. Is there any utilities assistance since we continue to get shut down due to virus spikes?
    Thank you

  65. Jodi Bisogno says:

    Is there a Cares Package that nonprofits can access if they kept employees on the payroll in 2021 – I was contacted by someone who indicated that this was included in the Cares Act – although I do not see anything similar – he indicated there is up to 26k available per employee that was kept on payroll that we could qualify for and that he could help us apply ?

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