The nonprofit fight against the 2017 tax law heats up

The state budget is out and here’s how human services did. Assembly speaker Carl Heastie released the following statement early Monday morning on how the $175.5 billion deal affects the human services sector specifically:

“The State Fiscal Year 2019-20 Budget includes $33.04 million for the Advantage Afterschool Program, which provides youth development opportunities to school-age children and youth for three hours after school. It also provides $1.5 million for the Disability Advocacy Program, $2 million for refugee resettlement support and $350,000 for those who were displaced from Puerto Rico and the Virgin Islands and have settled in New York. To address the heroin and opioid crisis, this year’s budget includes $2 million for Substance Abuse Prevention and Intervention Specialists in New York City, $4.73 million to expand jail-based substance use disorder services in county jails and $350,000 for loan forgiveness and scholarship programs to recruit and retain staff in the prevention, treatment and recovery service system. The budget also provides $21.25 million for agency operations and various veterans programs.”

UPDATE: More budget info is available here.

An April 16 New York City Council hearing will examine contracting issues with human services nonprofits. The Committee on Contracts will consider five bills that would address how the city works with the nonprofits that provide social services on its behalf. Check them out here.

Applications are being accepted for Community Resource Exchange’s Rising Fund. The pro bono consulting initiative provides small nonprofits with three months’ worth of consulting help, according to a press release. Eligible nonprofits will have a focus on fighting poverty, promoting equity or expanding opportunity in New York City and have an annual operating budget between $100,000 and $1 million. More information on the application process is available here. The deadline to apply is Friday, April 26 at 11 p.m.

Nonprofit leaders huddled with U.S. Rep. Carolyn Maloney at the headquarters of the Nonprofit Coordinating Committee of New York on Friday. NPCCNY Executive Director Sharon Stapel, Human Services Council Executive Director Allison Sesso and other nonprofit leaders joined the Manhattan Democrat as she announced legislation that would undo changes made in the 2017 tax law that added new administrative costs on nonprofits. Here is a breakdown of the three parts of the legislation:

  1. Repeals the unrelated business income tax provision in the 2017 Tax Act. “The 2017 Tax Act requires nonprofits to file taxes for each individual business activity,” which increases administrative costs, according to a press release from the Human Services Council.

  2. The bill also updates the Mileage Reimbursement Rate for nonprofits to put it in line with for-profit companies.

  3. Nonprofit employees would also get paid family and medical leave tax credit.

Maloney has also released a report that assesses how the tax law affects nonprofits: