FPLG COVID-19 RESPONSE
[UPDATE: May 25, 2020]
In response to the unprecedented emergency, government is stepping up with innovative loan and aid programs, but these efforts have been plagued with under-funding, bureaucratic hiccups, and administrative policies that fail to direct enough money to smaller businesses and nonprofits.
Donors at all giving levels are responding generously despite downturns in their own financial circumstances, but nonprofits are still experiencing budget shortfalls; overall, though, there will be a substantial decline in contributions. Rapid-response funds around the nation are generating substantial public support, but are not making up for revenue losses.
Foundations are taking the cue to revise some of their long-standing policies including increasing their current level of grantmaking and easing their restrictions and compliance requirements on grants.
Nonprofits are adapting to social-distancing rules and making the difficult switch, for the near term, to virtual fundraisers, but these substitutes aren’t expected to generate as much money as the traditional, in-person, fundraisers.
[April 1, 2020]
The crisis facing our entire society has thrust the nonprofit sector into a dual role all too familiar from emergencies past: We are fighting for our survival while at the same time stepping up to provide needed benefits and services to our communities.
In these uncharted waters, nonprofit organizations are looking to sources of financial assistance both established (government contracts, foundation grants, and individual donors) as well as new (rapid-response funds and special government loans and benefits).
REFERENCES & RESOURCES
Financial Aid Expected for Struggling Nonprofits: The HEROES Act and Accessing PPP Loans (May 18, 2020) William Powers, Esq., & Anna Tang, Esq., Nossaman LLP
Most Nonprofits Negatively Impacted by COVID-19, Survey Finds (May 14, 2020) Candid, Philanthropy News Digest
Nonprofits Won’t Survive Unless the Federal Government Helps More Medium-Size Groups (May 11, 2020) Susan N. Dreyfus & John MacIntosh, The Chronicle of Philanthropy
Philanthropy during COVID should focus on effective, local giving (May 5, 2020) Martin Morse Wooster, Philanthropy Daily
Nonprofit Fundraising in the Age of Coronavirus (April 15, 2020) Alan Cantor, Harvard Business Review
Struggles on the Ground: Nonprofits Face COVID-19 in Unclear Circumstances (April 1, 2020) Martin Levine and Ruth McCambridge, The Nonprofit Quarterly
Leaders Argue That Nonprofits Need Government Aid (March 31, 2020) Dan Parks, The Chronicle of Philanthropy
Financing During a Pandemic: How to Adapt to a Crisis (March 30, 2020) Jim Rendon, The Chronicle of Philanthropy
Coronavirus and Nonprofits: Challenges & Resources (March 13, 2020) Linda J. Rosenthal, J.D., For Purpose Law Group Blog