The American Society of Association Executives has joined forces with more than 2,200 organizations in asking the U.S. Congress to extend federal COVID-19 relief to nonprofit associations. The sign-on letter, delivered July 1 to congressional leaders, pointed out that while the CARES Act authorized financial assistance to 501(c)(3) charitable nonprofit organizations, so far this access has not been granted to nonprofit associations.
"Despite nonprofit associations' collective efforts to help sustain America amid adversity, most are ineligible for significant relief offered through the Paycheck Protection Program," reads the letter. "According to a June 5 survey of 501(c)(6) executives by the American Society of Association Executives (ASAE) Research Foundation, 72 percent of respondents anticipate using up to half of reserve funds to offset estimated revenue loss, while 4 percent anticipate using more than half of reserves and 4 percent anticipate insufficient reserves to cover estimated losses."
As Congress is reportedly set to begin formal negotiations on a fourth coronavirus stimulus package following its two-week July 4th recess, the letter asks that aid to associations be included in that relief. The letter makes three main requests:
- Provide 501(c)(6) associations access to the PPP and reauthorize the PPP until at least Dec. 31, 2020
- Pass the Pandemic Risk Insurance Act of 2020 (H.R. 7011), which would establish a system of shared public and private compensation for business interruption losses and event cancellations resulting from future pandemics or public health emergencies
- Pass the Skills Renewal Act (H.R. 7031/S. 3779), which would provide a $4,000 tax credit for Americans who have been laid off or furloughed due to COVID-19 so they can pursue post-secondary skills training
This is the second sign-on letter that ASAE has sent to Congress, following its initial request for aid on April 2, shortly after the passage of the CARES Act. Both letters highlighted the importance of associations in helping industries weather the pandemic and come out of the crisis stronger. The latest letter included examples of associations serving their industries and communities, among them United Fresh Start Foundation providing 25 $1,000 Rapid Response FRESH Grants to increase access to fresh fruits and vegetables, and the Texas Rural Water Association providing support services to organizations delivering safe water to millions of Texans.
"Associations have been largely left out of COVID-19 relief measures to date and continue to work tirelessly in support of the industries and professions needed to restore the U.S. economy," said ASAE president and CEO Susan Robertson, CAE. "It's past time for Congress to take action to ensure associations can continue their vital roles in workforce development, standard-setting and industry advancement as the nation moves toward economic recovery."
