In this time of crisis, nonprofits of all shapes and sizes have been scrambling to obtain assistance under the federal CARES Act. Sheppard Mullin’s Nonprofit Team is grateful for the special opportunity to help by partnering with Independent Sector, a prominent national coalition representing the diverse interests of charitable organizations and corporate philanthropy programs across the country whose membership is comprised of more than 400 public charities, private foundation and large corporations involved in philanthropy. We partnered with Independent Sector in developing the following tools to help nonprofits understand and obtain the relief available under the CARES Act:
- Top 11 Questions about Relief for Nonprofits under the CARES Act – Covering commonly asked questions, such as which types of nonprofits are eligible for which programs, the requirements for getting a Paycheck Protection Program loan forgiven, and the impact of federal student loan relief on the Public Service Loan Forgiveness program.
- CARES Act: How to Apply for Nonprofit Relief Funds – A tool laying out clearly the various types of relief for large and small nonprofits and individuals under the CARES Act.
- Webinar: Navigating the CARES Act – A webinar reviewing the types of benefits for nonprofits under the CARES Act and addressing questions from participants.
The specific types of relief available to a nonprofit organization and its employees, and the best relief options to pursue, will depend on each organization’s particular circumstances. Nonprofits should also consider additional sources of relief available from charitable organizations (such as local community foundations) and state and local governments across the country, as well as relief based on their type of operations (e.g., federal law provisions for healthcare, food and shelter, and arts and cultural organizations). Certain programs preclude other types of relief. Importantly, nonprofit organizations should continue to proactively monitor developments, as the issuance of regulatory guidance and other changes are occurring at breakneck speed.
Nonprofit boards should be actively engaged in evaluating and determining the best approach for their organization, consistent with their fiduciary duties. They should also be taking into account considerations such as state law rules governing how charitable organizations manage and spend from their endowment and investment funds, and rules relating to providing disaster relief assistance to employees and others.
*This alert is provided for information purposes only and does not constitute legal advice and is not intended to form an attorney client relationship. Please contact your Sheppard Mullin attorney contact for additional information.*