Public Policy
The historic $787.2 billion economic recovery bill designed to address our nation’s deepening financial crisis was signed into law on February 17, 2009. The American Recovery and Reinvestment Act of 2009 (PL 111-5) includes a mix of roughly 65% spending and 35% tax cuts, with sizable investments in infrastructure projects, science and energy, Medicaid assistance, healthcare, and support for vulnerable populations and communities. The bill also includes funding for education, the arts, and nonprofit capacity building.
The Recovery Act authorizes:
• Federal social and spending programs - $357 billion
• State and local fiscal relief - $144 billion
• Tax cuts - $288 billion
Lobbying Restrictions
Federally registered lobbyists must complete a form which will be posted on each agency’s website documenting conversations with government officials about stimulus spending proposals. Read more about these lobbying restrictions and check the rules for who must register as a federal lobbyist. (IS member password required.)
Resources on Stimulus Funds
The Department of Health and Human Services' Administration for Children and Families announced May 11 the availability of capacity building grants for nonprofit organizations. The newly created Strengthening Communities Fund, authorized as part of the American Recovery and Reinvestment Act of 2009, will make awards of up to $1 million to lead organizations to provide technical assistance and training to support other nonprofit organizations. Grantees must provide at least 20 percent of the total approved cost of the project from non-federal funds.
On June 5, 2009, the Office of Community Services within the Administration for Children and Families held a conference call detailing the basic requirements and application procedures for the Strengthening Communities Fund’s Nonprofit Capacity Building Program. The deadline for grant applications is July 7, 2009 at 4:30pm EST. HHS has posted update grant information and application resources on its website.
HHS Website Resources – Nonprofit Capacity Building Program
Program Announcement
Pre-Application Teleconference Resources
Nonprofit Capacity Building Program Guidance
Organizations can also learn more about funding opportunities on the federal Recovery.gov website, which lists funding programs by federal agency and by state . Information on Recovery Act grant opportunities is also available at Grants.gov ; and loan opportunities are described at GovLoans.gov .
In addition, The Center on Philanthropy and Giving USA have launched a special bulletin that provides information and links for Recovery Act funds of interest to the nonprofit sector.
For a state-by-state breakdown of key recovery package provisions, visit the Center on Budget and Policy Priorities .
More Work Ahead
The generous package of spending initiatives and tax cuts is an important first step in restoring America’s economic vitality, but the real work is just beginning. This bill does not solve the immediate credit crisis threatening the services provided by thousands of nonprofit organizations, and it will by no means close the serious deficits faced by state and local governments. Congress is facing similar difficult decisions as it tackles the FY 2010 budget.
It is now more important than ever for nonprofit organizations to build or strengthen their relationships with elected officials at the federal, state, and local levels as work continues on reshaping our country’s long-term fiscal priorities. IS has a list of tips on establishing strong relations with policymakers.
Independent Sector issued a statement on February 2, 2009 stressing the need for economic recovery legislation and urging Congress to incorporate several important proposals. Although Congress did not incorporate the following provisions in the recovery package, Independent Sector remains committed to promoting action on these measures to help lift our communities out of the economic crisis:
- Foundation Excise Tax: Eliminate or suspend the two-tiered excise tax on foundation net investment income that discourages foundations from increasing their giving in times of greater need.
- Individual Giving: Remove caps on the amount of tax-deductible contributions individuals can claim on their tax returns and remove the limits on how much individuals can contribute tax-free to charitable nonprofits through their Individual Retirement Accounts.
- Volunteer Mileage: Increase the amount volunteers can deduct for use of their personal automobiles to deliver services to people in need which is currently set by law at only 14 cents per mile.
- Emergency Bridge Loan Program: Make credit available to nonprofits to bridge funding gaps resulting from state reimbursement delays by establishing an essentially deficit-neutral emergency bridge loan program, combined with incentives to states that reimburse on time those nonprofits with which they have contracts.
Last Updated: June 5, 2009
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