Statement on House Passage of the Protecting Nonprofits from Catastrophic Cash Flow Strain Act

Statement on House Passage of the Protecting Nonprofits from Catastrophic Cash Flow Strain Act

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In response to the House’s unanimous consent passage of the Protecting Nonprofits from Catastrophic Cash Flow Strain Act, National Council of Nonprofits President & CEO Tim Delaney issued the following statement:

"With a master stroke of bipartisanship, the House today acted to partially reduce the panic that many nonprofits will experience this month when dozens of states send out massive invoices for unemployment compensation costs. With nonprofit resources plummeting and demand for services rising, nonprofits that have already had to lay off employees could not bear the brunt of another huge bill to pay. The Senate also passed this measure by unanimous consent to override the Department of Labor’s misguided, jobs-killing interpretation that was imposing economic burdens on charitable organizations that Congress never intended.

“This legislation is not a complete solution to the problem of unemployment benefits costs that are dragging nonprofits down and forcing them to reduce services to the public, but it is a solid half-step toward the full solution needed. We are sincerely grateful to Speaker Pelosi, Leader McCarthy, Chairman Neal, and Ranking Member Brady for prioritizing the needs of charitable nonprofits during this crisis.

“There is also still much work to do to ensure that charitable nonprofits – our nation’s third largest employer – can keep their employees on the payroll and can continue serving communities across the country. There is broad bipartisan support in Congress for many policies that would enable nonprofit and faith-based organizations to continue doing their vital work at this time when they are needed most. We look forward to working with members of Congress to ensure inclusion of those solutions in future relief legislation."

The National Council of Nonprofits will be hosting a briefing on this issue on Wednesday, July 15 at 2:00 pm Eastern as part of the #Relief4Charities Week of Action. For more information, visit https://www.councilofnonprofits.org/unemployment-and-self-insured-nonprofits-ending-the-pressure-lay-more-employees

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