Working with Government

Networking for Success: Building Networks Is Essential to Investment in Social Impact Bonds

council-webteam — Tue, 04 Mar 2014 15:14:20 +0000

Networking for Success: Building Networks Is Essential to Investment in Social Impact Bonds council-webteam Tue, 03/04/2014 - 10:14

Networking for Success: Building Networks Is Essential to Investment in Social Impact Bonds

Working in collaboration with the Center for American Progress, the Council co-hosted conversations among foundations, community development financial institutions, and investment firms about social impact bonds and Pay for Success. Out of these conversations, two issue briefs were created:

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SFFA Case Summary and Ruling

MatthewCain — Tue, 18 Jul 2023 19:53:08 +0000

SFFA Case Summary and Ruling MatthewCain Tue, 07/18/2023 - 15:53

SFFA Case Summary and Ruling

On June 29, 2023, the U.S. Supreme Court issued its ruling on two cases involving the use of race-conscious admissions practices by colleges and universities: Students for Fair Admissions (SFFA) v. Harvard and SFFA v. University of North Carolina (UNC).

The majority opinion held that the race-conscious admissions programs implemented by Harvard and UNC violated the Equal Protection Clause of the Fourteenth Amendment and Title VI of the Civil Rights Act of 1964 and therefore constitute unconstitutional discrimination on the basis of race.

The Council is working to understand how the decision’s reverberations may extend to philanthropy and to our nonprofit partners. To better support our members and the broader charitable sector, our legal team is developing FAQs and other materials to answer your questions about the potential consequences for your organizations, your nonprofit partners, and your communities. Additionally, we are sharing a range of resources from our members, partners, and other stakeholders discussing what this decision may mean for the work of foundations and nonprofits, as well as potential paths forward.

We will be updating this page regularly as we have new resources to share.

Resources:

Steptoe & Johnson Analysis: Commissioned by the Council and Independent Sector, this analysis looks at how the Supreme Court’s decision could potentially impact foundations and other nonprofit organizations

Responses:

Kathleen Enright’s Statement: Statement from Council President and CEO Kathleen Enright
Philanthropic Joint Statement: Led by the Robert Wood Johnson Foundation and the Ford Foundation, and signed by more than 100 organizations, including the Council

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Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010)

council-webteam — Wed, 10 Jun 2020 16:02:46 +0000

Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010) council-webteam Wed, 06/10/2020 - 12:02

Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010)

Bill #5 – Enacted June 5, 2020

Comprehensive Coronavirus Legislation Guide for the Charitable Sector

This is a summary of the fifth bill Congress passed to help with the effects of the coronavirus outbreak. This guide highlights the specific provisions of that bill that may impact the charitable sector. The Congress has passed four other bills which are included in the Comprehensive Guide.

The primary purpose of this fifth bill is to provide more flexibility for recipients of Paycheck Protection Program (PPP) loans with respect to repayment and loan forgiveness. The bill also removes a provision in the CARES Act that prevented organizations receiving PPP loan forgiveness from also taking advantage of employer payroll tax payment deferrals. More specific guidance related to the PPP Flexibility Act can be found in the SBA’s Revisions to First Interim Final Rule.

Relevance to the Charitable Sector

Clarification of Minimum Maturity Dates for PPP Loan Balances not Subject to Forgiveness

While the original PPP provisions in the CARES Act included a maximum maturity of 10 years for loan balances remaining after determining amounts that qualify for forgiveness, the PPP Flexibility Act also imposes a minimum maturity of five years for loans made on or after June 5, 2020 (for loans made before June 5, 2020, the maturity date is two years unless borrowers and lenders mutually agree to extend that date). The SBA determined that the date it assigns a loan number to the PPP loan provides an efficient, transparent, and auditable means of determining when a PPP loan is “made” that provides certainty to lenders.

PPP Loan Forgiveness Covered Period Extended

Under the original PPP provisions in the CARES Act, loan forgiveness was determined based on use of loan proceeds during an eight-week period beginning on the date of loan origination. The PPP Flexibility Act expands that period to either 24 weeks or December 31, 2020 (whichever is earlier). The PPP Flexibility Act also amends the definition of “covered period;” extending it from February 15, 2020 – June 30, 2020 to February 15, 2020 – December 31, 2020. In order to receive any loan forgiveness, a borrower must submit to its lender a loan forgiveness application within 10 months after the end of the loan forgiveness covered period. If they do so, the borrower will not have to make any payments of principal or interest on its loan before the date on which SBA either remits the loan forgiveness amount to the lender, or notifies the lender that no loan forgiveness is allowed.

New Flexible Provisions to Address Reduction in FTEs and Re-Hires

Under the original provisions in the CARES Act, an organization that experienced a reduction in FTEs after February 15, 2020 had until June 30, 2020 to restore those positions and eliminate the reduction in FTEs or risk failure to qualify for loan forgiveness. The PPP Flexibility Act extends that time period to December 31, 2020. The Act also includes a new exemption based on employee availability. This provision states that PPP loan forgiveness will be determined without regard to a proportional reduction in FTEs, if the organization has made good faith efforts to rehire, but has failed to restore FTEs within the required time period due to an inability to hire similarly qualified employees for unfilled positions on or before December 31, 2020 or is able to document an inability to return to the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued by the Secretary of HHS, the Director of the CDC, or OSHA during the period beginning on March 1, 2020, and ending December 31, 2020.

New Ratio for Application of PPP Loan Proceeds

The PPP Flexibility Act provides more flexibility with respect to how PPP loan recipients use the loan proceeds. Previously, a recipient was required to apply at least 75% of PPP loan proceeds to payroll costs and the remaining 25% could be applied to mortgage interest, rent, and utilities. The PPP Flexibility Act amends that ratio; recipients now need only apply 60% toward payroll costs and up to 40% can be applied to mortgage interest, rent, and utilities.

Removal of Restriction on PPP Loan Forgiveness/Payroll Tax Deferral

Under the CARES Act, employers were not permitted to take advantage of a provision allowing the employer to delay payment of its employer payroll taxes if the employer also received PPP loan forgiveness. The PPP Flexibility Act removes this restriction and allows employers to participate in both programs.

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Our Divided Nation: Is There a Role for Philanthropy in Renewing Democracy?

council-webteam — Mon, 15 Apr 2019 14:22:03 +0000

Our Divided Nation: Is There a Role for Philanthropy in Renewing Democracy? council-webteam Mon, 04/15/2019 - 10:22

Our Divided Nation: Is There a Role for Philanthropy in Renewing Democracy?

American democracy faces challenges that raise difficult questions for philanthropy. Have funders done everything possible to shore up democratic values and aspirations, or pursued their own ideas of the public good and turned a blind eye to these challenges? To what extent can philanthropy’s efforts to strengthen communities and rebuild public trust be effective in the face of stiff headwinds? How can it be more responsive to the needs of a democratic society? And what role does the public play, if any, in defining the priorities of grantmaking organizations?

This report from the Council on Foundations and the Kettering Foundation summarizes a two-day symposium that the two organizations convened in May 2018 to wrestle with these questions. A group of prominent foundation leaders working at the national, state, and community levels explored how philanthropy can narrow the gap between people and institutions, strengthen public engagement, build civic capacity, and generally bolster democratic norms and practices in the United States.

As the report points out, foundations often stress the importance of advancing democracy and serving the common good, yet there is no real consensus in the field about what this means in the context of a divided public or how it is to be achieved. One of the challenges facing philanthropy today is to figure out what kind of democracy it wants to support and how best to go about doing that.

Download Full Report

Download Executive Summary

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CDFI Fund Map of All Census Tracts Eligible for Designation as a Qualified Opportunity Zone

kelsey.gerber@cof.org — Tue, 12 Feb 2019 19:25:56 +0000

CDFI Fund Map of All Census Tracts Eligible for Designation as a Qualified Opportunity Zone kelsey.gerber@… Tue, 02/12/2019 - 14:25

CDFI Fund Map of All Census Tracts Eligible for Designation as a Qualified Opportunity Zone

The CDFI Fund has identified over 41,000 population census tracts that are eligible for designation as a QOZ, including (1) 31,680 population census tracts that are Low-Income Communities (LICs) eligible for designation as QOZs; and (2) 9,453 non-LIC population census tracts that are eligible for designation if a particular LIC contiguous to the non-LIC tract is designated as a QOZ. Contiguous Tracts must be at or below 125% of the area median income.

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CDFI Fund Map of All Census Tracts Eligible for Designation as a Qualified Opportunity Zone

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US Impact Investing Alliance Resources on Opportunity Zones

kelsey.gerber@cof.org — Tue, 12 Feb 2019 19:22:32 +0000

US Impact Investing Alliance Resources on Opportunity Zones kelsey.gerber@… Tue, 02/12/2019 - 14:22

US Impact Investing Alliance Resources on Opportunity Zones

Now that Opportunity Zones have been designated, individual and corporate investors are then given the opportunity to defer capital gains taxes when they reinvest the earnings in these communities. Additional incentives accrue over five, seven and ten years if the investment is maintained – thereby promoting the kind of patient capital that distressed communities so often lack. Get more of the resources you need to learn about Opportunity Zones from the US Impact Investing Alliance.

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US Impact Investing Alliance Resources on Opportunity Zones

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How Community Foundations Can Use the Opportunity Zone Tax Incentive for Community Development?

kelsey.gerber@cof.org — Tue, 12 Feb 2019 19:13:24 +0000

How Community Foundations Can Use the Opportunity Zone Tax Incentive for Community Development? kelsey.gerber@… Tue, 02/12/2019 - 14:13

How Community Foundations Can Use the Opportunity Zone Tax Incentive for Community Development?

This white paper from the Community Foundation Public Awareness Initiative discusses a timely and significant opportunity for community foundations (CFs): How they can use the recently enacted federal Opportunity Zone tax incentive to benefit communities in need by leveraging their knowledge of underprivileged communities, networks of donors, and commitment to community development. The memo explores several options for CFs to take advantage of the Opportunity Zone (OZ) incentive to support their mission.

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How Community Foundations Can Use the Opportunity Zone Tax Incentive for Community Development?

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Community Foundations, Meet Opportunity Zones

kelsey.gerber@cof.org — Tue, 12 Feb 2019 19:09:40 +0000

Community Foundations, Meet Opportunity Zones kelsey.gerber@… Tue, 02/12/2019 - 14:09

Community Foundations, Meet Opportunity Zones

Guest writer Adam Northup, LOCUS Advisor, shares what every Community Foundation should know about Opportunity Zones. Created by the new tax law, this new tool has the potential to revitalize left behind communities.

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Community Foundations, Meet Opportunity Zones

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Mission Investors Exchange Opportunity Zones Resources

kelsey.gerber@cof.org — Tue, 12 Feb 2019 19:02:35 +0000

Mission Investors Exchange Opportunity Zones Resources kelsey.gerber@… Tue, 02/12/2019 - 14:02

Mission Investors Exchange Opportunity Zones Resources

The OZ program is intended to spur long-term investments in low-income census tracts in the U.S. The new law allows investors to place unrealized capital gains (a profit from an investment that hasn’t yet been sold) into authorized O Funds that invest capital into OZs. The greatest benefits would go to investors who invest for 10 or more years. Learn more from the Mission Investors Exchange about the benefits, risks, and potential of opportunity zones.

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Mission Investors Exchange Opportunity Zones Resources

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LOCUS National Opportunity Zones Ranking Report

kelsey.gerber@cof.org — Tue, 12 Feb 2019 18:54:57 +0000

LOCUS National Opportunity Zones Ranking Report kelsey.gerber@… Tue, 02/12/2019 - 13:54

LOCUS National Opportunity Zones Ranking Report

With the creation of the federal Opportunity Zones incentive program, trillions of dollars in new private investment will flow into pre-designated low-income communities around the country. But will this investment benefit the people living in these communities now, or will they be displaced as new interest and development brings increased property values and rents? And what kind of development will result —unsustainable, car-dependent sprawl (the dominant growth paradigm in the United States today) or walkable, mixed-use communities with a variety of housing options for everyone? Read this report ot learn more about which opportunities are positioned to bring the most positive impact on their communities.