Time winding down
Nonprofits make final appeal
In a year in which the coronavirus has all but wiped out fundraising for nonprofits, many are making an 11th-hour push for donations that are tax-deductible under a little-known provision of the CARES Act that is set to expire at the end of the year unless an extension is approved by President Trump.
The Coronavirus Aid, Relief and Economic Security Act passed by Congress and signed into law by Trump in March allows people to receive a tax deduction of up to $300 for charitable donations they make by Dec. 31.
That provision would be extended until the end of next year under a $2 trillion stimulus bill Congress passed on Monday, but Trump has threatened to oppose the bill because it includes a $600 check, rather than $2,000, to most Americans.
“Just about every organization has been affected,” said Rick Cohen, chief operating officer of the National Council of Nonprofits. “Even the recession of a decade ago doesn’t compare.”
Before the pandemic, nonprofits were the third-largest employer in the U.S., employing 12.3 million people, Cohen said. Of them, nearly 1 million have been laid off because so many groups have seen drastic declines in donations, he said.
As early as June, Massachusetts charities were reporting an $8.6 billion loss in revenues, Cohen said.
The Boys and Girls Club of Lower Merrimack Valley alone lost about $250,000 — more than a quarter of its $800,000 annual budget — partly because it had to cancel its biggest fundraiser, an auction that usually raises about $140,000, said Jim Keenan, executive director.
As a result of drops in donations and fees, as well as social-distancing restrictions, the summer program was able to serve only about 60 youngsters instead of the usual 200, he said, and the club has laid off two people, a quarter of its full-time staff.
“We’d love everyone to take advantage of the tax credit,” Keenan said. “This is a second home to a lot of kids. But we live off the generosity of others. For the most part, it’s really individuals and local businesses that keep us afloat.”
The Boston Landmarks Orchestra, all of whose concerts are free, is completely reliant on donations, said Mary Deissler, co-executive director. But this year, she expects individual and corporate donations to be down 25 to 30%. “We’re actively fundraising until midnight on the 31st,” Deissler said. “So any incentive, like a tax credit, is really powerful.”
Revenues at Special Olympics Massachusetts, which serves about 14,000 athletes, are down by 32%, or $1.9 million, this year, largely because it has had to cancel more than 50 fundraising events, said Charles Hirsch, vice president of development.
Donations to the Salvation Army of Massachusetts‘s Red Kettle Campaign are down by more than 50% compared to last year, said Carlisa Brown, chief advancement officer, because the pandemic has cut the number of red kettles at store entrances, people are carrying less cash, and foot traffic has plunged at shopping areas.
The United Way of Massachusetts Bay and Merrimack Valley has been spreading the word about the $300 charitable deduction and hoping that will help motivate people to give, said CEO Bob Giannino.
In its fundraising appeals, the United Way is focusing on the urgent needs for so many people, including more than 1 million in the state facing food insecurity, a tidal wave of evictions on the horizon and high unemployment.
“We’re really pounding those specific messages,” Giannino said, “so people can tangibly understand the need.”