PNY's Call to Action on Behalf of NYC's Nonprofits During COVID-19
On Monday, April 20, 2020, Philanthropy New York sent the following letter and attachment to Senator Schumer, urging him to support larger nonprofits in COVID-19 releief efforts.
Dear Senator Schumer:
We deeply appreciate your unwavering support for the nonprofit sector in the government’s first response to COVID-19. We are writing today to draw your attention to the unmet needs of a segment of the nonprofit sector that is critical to the safety net for New York City’s most vulnerable populations – nonprofits with more than 500 employees that are operating on the frontlines of the COVID-19 crisis.
New York City’s safety net, in this time of crisis, is completely dependent on the large nonprofits that house the homeless, support foster care youth, care for the disabled and so much more. These nonprofits, which represent about 50% of the social service spending in this city, have been, inexplicably, left out of the COVID-19 federal relief packages.
We are sharing with you a report provided by Sea Change Capital Partners which details the precarious nature of large social service agencies’ financial situation and the critical nature of their work. This city cannot manage this crisis without them. As you will see in the report, these nonprofits operate with very thin margins, are shifting scopes of work as essential providers during the pandemic, and are in most need of zero-interest and forgivable emergency loans.
Philanthropy New York joins with our colleague organizations in New York City in recommending that in further relief efforts:
1. Nonprofits with more than 500 staff members can access zero-interest and forgivable loan programs.
2. The Paycheck Protection Program be amended to allow for any government-funded non-profit that has to lay off staff as a result of government or other funding cuts continue to be eligible for loan forgiveness.
Thank you in advance for your consideration and for your staunch support of New Yorkers, and all Americans, during this crisis.
Ronna D. Brown
President, Philanthropy New York