(February 1, 2010) On January 29, 2010, nonprofits received good news when the White House began outlining the details of a $33 billion job-creation proposal designed to spur hiring by small employers, specifically including nonprofits...Read More in our Public Policy Section

Nonprofits Included in White House Jobs Plan

On January 29, 2010, nonprofits received good news when the White House began outlining the details of a $33 billion job-creation proposal designed to spur hiring by small employers, specifically including nonprofits. This development marks important recognition by federal policymakers that nonprofits play a vital role not only as service providers, but also as employers important to the economic stability of local communities.

Arkansas Coalition for Excellence (ACE) wants nonprofits in Arkansas to be aware of the White House plan because it could influence personnel decisions for many nonprofits. So we asked the National Council of Nonprofits, to which members of ACE belong through your membership in us, to summarize the main components of the President’s proposal as presented during a White House conference call. The National Council reports that during the call Administration officials revealed: 

• Nonprofits of any size would get a $5,000 tax credit for every new employee they hire in 2010, retroactive to the beginning of the year
• Nonprofits of any size that increase the hours or wages of employees making less than $106,800 can be reimbursed for the additional Social Security taxes incurred
• The maximum benefit for any one nonprofit would be capped at $500,000
• The Administration estimates that 1 million small employers (including nonprofits) will take advantage of these incentives

For more information, the official White House fact sheet can be Found Here. [Note: Even though the fact sheet repeatedly refers to “businesses,” “small businesses,” and for-profit “firms,” it also states (in the third bullet) that “Non-profits will be eligible for the credit.” Plus, during the White House’s conference call, Administration officials reinforced that nonprofits will be eligible for the relief.]

The President’s plan is not the only one under consideration in Washington. The details easily could change as Congress crafts legislation in the weeks ahead. Therefore, recognize that at this time these are only proposals, not law.

ACE and the National Council of Nonprofits will continue to advocate for public policies that support a healthy and vibrant nonprofit sector.