Cares ACT (Payroll Protection Program) & nonprofits

[wildrice]

Non-profits are businesses too, they just don't make a profit from it. They employ people who count on them for paychecks, and they generally provide services or programs that help people, so I don't have any issue at all with them accepting a PPP loan. If anything, I would expect them to need it MORE because they tend to operate on tighter margins and, by definition, do not make a profit so won't have the amount of reserved cash saved that a for-profit business could. I certainly don't think their employees are more deserving of being laid off than those who work in for-profit industries, and if non-profits collapse because they are bankrupt, the causes they support will suffer. I don't agree with the mission of every single non-profit, obviously, but I think in general they are an important part of our society.

As far as a faith based organization, I don't have an issue with that either as long as they are doing what the loan says they should - keeping people on payroll. I guess if it's a mega church that has a ton of money in reserves, they should probably use some of that first before taking money that others could use. But I don't assume that most faith based organizations have a ton of money reserved either.

[formerlyak]

I don’t understand why it’s even a question. As wildrice said, nonprofits are a business and many don’t have the level of reserves (if any at all) that a for profit Corp would. So if they couldn’t get CARES money, and had to lay off people who are providing muck needed services - education, housing, food for those in need, low-cost medical care - how would those services be provided? Certainly not by our government. And so many people turned to the arts during safer at home for entertainment, escape, whatever. Most arts orgs are also nonprofit. Those cool virtual tours of amazing museums? Someone had to create them.

[claudiajean]

The purpose of the loans isn’t just to help the organization but also to help the workers that would have been laid off which then would have a further ripple effect on the economy. I can see why it seems strange to think of a FBO getting the funds but I don’t think that’s a reason to exclude them. And non-profits overall need help more than ever as many of them are servicing more people with less donations.

[readyin07]

Same questions as the others. It’s a paycheck protection program and as long as those organizations have employees whose paychecks need protecting then I think it’s fine. I don’t think it matters if they are not tax paying.

[readyin07]

Same questions as the others. It’s a paycheck protection program and as long as those organizations have employees whose paychecks need protecting then I think it’s fine. I don’t think it matters if they are not tax paying.

[seeyalater52]

I definitely think there are some FBOs that should not be permitted to operate as nonprofits, but as long as they are classified that way I dont see any real rationale to exclude them from this type of support. Nonprofits in general should absolutely be eligible.

[jackie011]

I work for a faith based non-profit and thanks to the PPP we’ve able to keep our staff of 150ish (including 60 preschool staff, despite the school being closed and collecting $0 in tuition payments) fully paid and covered by insurance this whole time. I’m grateful, to say the least.

[penguingrrl]

A PPP loan saved my organization. I work for a local history museum that operates on a razor thin margin. We have been working on providing virtual programming during this as we’re able to, and I’m currently working on a virtual format for class trips (a massive source of our revenue that is potentially gone forever).

[sent]

I just read there is still $100 Billion in funding left in the program as of May 23. That's good for me because I had to resubmit my application due to my 2019 tax preparation being delayed.

I read that FBO received funds and my first reaction was "What???" but then I calmed down. I'm ok with it. Some of these FBO and non-profits could certainly use the funds to keep their doors open and remain a part of their local communities.

But there are organizations like Delta Dental that are also non-profits. The NFL was a non-profit until 2015 when it changed its status due to public criticism. Delta Dental behaves like a full blown insurance company despite the non-profit status. We're all going to need some faith to help us if we learn those places got funds.