CARES Act Provides Financial Relief for Nonprofit Organizations

The CARES Act contains several provisions applicable to nonprofit organizations, but the available relief and the process for obtaining it depend largely on an organization's tax classification under Section 501(a) of the Internal Revenue Code (the "Code").

501(c)(3) and 501(c)(19) Organizations with 500 or Fewer Employees 

One of the core pieces of the CARES Act is the provision of $349 billion for small businesses through federally backed loans under a modified and expanded Small Business Administration (SBA) 7(a) loan guaranty program called the Paycheck Protection Program. Congress has designed the program to make funds available to qualifying businesses quickly through approved banks and nonbank lenders. The CARES Act also provides charitable giving incentives to donors to 501(c)(3) organizations by expanding the charitable deduction to all taxpayers for a year.