JUNE 15 - 19 MIDWEEK UPDATE
June 17, 2020 - At HighGround, we continue to weave our 2020 theme of Flexible Focus into everything we do. As we are all eager to see one another in person again, one recent focus has been to navigate a safe way back into the office. We anticipated initiating phase 1 of our return plan this week but due to the rising number of coronavirus cases and hospitalizations in North Texas, we’ve shifted our return date until next week.
As we’ve said before, our office environment will look different than before but our level of service and commitment to our clients remains constant.
- Stocks have been climbing over the past weeks due to hopes for the reopening of the economy.
- But last Thursday, all three major U.S. indexes recorded their worst day since the big COVID-19 selloff in March.
- The return of market volatility serves as a reminder that the pandemic isn’t over. The number of coronavirus cases is increasing in many U.S. states, slowing down the recovery of the American economy.
- However, markets rallied this week largely in part to a record jump in May’s reported retail sales, a $1 trillion proposal for U.S. infrastructure work and the Fed announcing it will begin buying individual corporate bonds.
What’s Next for Nonprofits?
In this 2-part series about the potential effects of COVID-19 on nonprofits, we will first highlight how the CARES Act could impact individual annual giving and then consider both the short and long-term changes to expect in the workplace environment.
WHAT IS THE CARES ACT?
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a $2 trillion relief package to protect individuals and businesses from the economic impact of COVID-19. The bill is designed to provide fast and direct economic assistance to American workers and families, small businesses, and to preserve jobs during this uncertain time. Charitable giving incentives were among its many provisions.
CHARITABLE GIVING INCENTIVES
In economic downturns, individuals tend to scale back their charitable giving, which can be detrimental to nonprofit organizations that rely on the generosity of their donors. Anticipating this, as part of the CARES Act, Congress suspended the existing cap on charitable deductions, which was 60% of adjusted gross income, and thus made contributions in 2020 fully deductible. While this may significantly help to encourage charitable giving in 2020, donors may choose to give more this year in place of spreading out their giving over the next few years. Therefore, nonprofits would be wise to prepare for a potential influx of giving in 2020 and a possible dip in donations in 2021 and 2022.
In our next edition of this 2-part series, we will share an interview with Interior Architect’s (IA) Managing Director Frances Bruns and her perspective on the future workplace.
Although we will no longer send weekly updates, we will continue to keep you informed as needed during this challenging time.