Action Alert: Nonprofit Unemployment Relief

Tell Our Senators to Protect Self-Insured Nonprofits

Dear Colleague,

Hundreds of nonprofits in Washington, ranging from youth programs to major arts institutions, are facing a special financial challenge: they belong to a trust to self-insure for unemployment rather than paying into the state system, and this system may suffer losses that threaten their survival. This alternative approach has worked well for decades, but the pandemic is an unprecedented event that is straining the state system and self-insured nonprofits. Please show your support for these important community institutions by contacting your Senators and showing support for new legislation that can help roll back a harsh ruling by the Department of Labor.

The bipartisan Protecting Nonprofits from Catastrophic Cash Flow Strain Act (S. 4001) solves half of the problems nonprofits have with the enormous costs of reimbursing their states for benefits paid to laid off or furloughed employees. Specifically, the bill would correct the Labor Department’s interpretation that reimbursing employers must pay 100% of unemployment claims upfront and then wait to get repaid 50% later. The bill currently has 16 cosponsors, evenly split between the political parties.

ACTION ITEM: Reach out to both of your Senators and urge them to co-sponsor S. 4001 and demand a vote this week before the Senate leaves for its July 4 break. It’s only half the UI challenge for reimbursing employers, but it’s the most time sensitive.

Please email or tweet this message to our Washington Senators:

“@[SenatorTwitterHandle], #nonprofits in Washington must have immediate relief from catastrophic cash flow strains caused by flawed Labor Department guidance. Cosponsor and insist on Senate passage this week of the bipartisan S.4001. #Relief4Charities.”

For more information, read this article in today’s Nonprofit Quarterly: Act Now to Protect Nonprofits from Government-Induced Cash-Flow Strain.

Please take a moment now to add your voice to to the need for nonprofit unemployment relief.