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Commercial organizations welcome the poverty alleviation aspects of COVID

Nonprofit advocates welcome the passage of a $ 1.9 trillion epidemic aid measure by Congress that could lift millions of people out of poverty on a scale not seen since the New Deal.

Legislation signed by President Biden on Thursday expands the core nonprofit lending program, boosts AmeriCorps funding, adopts or expands a range of programs designed to provide direct assistance to individuals.

The Independent Section of the Non-Profit Fund Coalition says the legislation “contains significant victories for the non-profit sector, the people we serve in Covid-19’s difficult economic times.”

However, the statement also complained that lawmakers missed the expansion of the charity cut, noting that the pay protection program is still very limited.

The following is a summary of the main provisions of the event, which was reviewed by non-profit lawyers.


The legislation includes nearly $ 1 billion in funding over three years to expand AmeriCorps’ national service plans to respond to the epidemic. It is a great stimulus. AmeriCorps’ budgets for recent years are about $ 1 billion a year.

Funding will mainly go to existing programs to increase life support benefits paid to AmeriCorps members and expand their ranks, although AmeriCorps officials are still sorting out the details.

AmeriCorps spokeswoman Samantha Warfield said the event would provide “the bold, targeted investment needed to support the administration’s overarching task of providing immediate relief from the epidemic.” He added that AmeriCorps could expand rapidly.

AnnMaura Connolly, head of Voices for National Service, which lobbies for National Service programs, said the provisions of the legislation, which increase the fee paid to AmeriCorps members, currently range from $ 1,120. $ 2,230 per month for AmeriCorps Vista members. will play an important role in enhancing the economic attractiveness of national service positions.

“Although the language is not very instructive in the bill, they set some priorities. It is possible to raise the living standards of employees, as it is very difficult to serve if you do not have additional support,” he said. “It’s very important in terms of diversity, in terms of justice, it’s going to allow the corporation to put more shoes on the ground, to fill in the gaps as they need to be.”

Service Year Alliance CEO Essie Colvin said the National Service provisions were a “monumental” first step in the Biden administration’s National Service plans.

“This will provide new, previously unattainable opportunities for young Americans who want to serve. It will lay the groundwork for President Biden to make service a cornerstone of his administration,” Colvin said in a statement.

Additional funding includes:

– $ 620 million for AmeriCorps national ծրագր national programs that provide grants to local nonprofits to hire AmeriCorps members in designated projects.

– $ 148 million for National Service Trust, a program that repays some student loans to AmeriCorps alumni.

– $ 80 million incentive for AmeriCorps Vista, which works on poverty alleviation programs with local NGOs and governments.


Under the Incentive Bill, passed in March 2020, nonprofit organizations with 500 or fewer employees were eligible for up to $ 10 million in forgivable Credit protection loans. The new incentive extends that right to nonprofits operating in multiple locations as long as no more than 500 employees are employed in any one.


The event extends լայն expands assistance to non-profit organizations that are self-insured against unemployment benefits. Under previous incentive legislation, the federal government covered half of the benefits for their laid-off employees. The new legislation will increase the compensation rate to 75% from April 1 to September 6.


The legislation will provide $ 350 billion to state, local and tribal governments. Nonprofit lawyers say the money will prevent states, local governments from delaying or cutting back on charities that have service contracts with them.

Helping people in poverty

Columbia University’s Center for Poverty and Social Policy estimates that the incentive will halve child poverty, and nonprofit lawyers say it will reduce the demand for overcrowded charities.

It provides $ 1,400 in direct payments to most Americans, in addition to the $ 600 assistance provided in the December Incentive Bill.

Legislation also extends unemployment benefits from the end of March to September 6 and increases the tax credit for children.

It provides $ 20 billion in rent, plus $ 510 million in the FEMA Emergency Food and Housing Program to support homeless service organizations.


This article was provided to the Associated Press by the Humanitarian Chronicle. Michael Thays is a Chronicle Writer. Email: michael.theis@philanthropy.com. Dan Parks is the Senior Editor of The Chronicle. Email: dan.parks@philanthropy.com. AP and Chronicle receive support from Lilly Endowment for charitable և non-profit coverage. AP and Chronicle are solely responsible for all content.


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