The CARES Act and Your Nonprofit, with Seth Perlman

Yesterday I sat down with Seth Perlman, Senior Partner at Perlman & Perlman LLP. Seth is one of the nation’s leading experts on nonprofit and philanthropic law, is an active leader in the philanthropic community, and a great partner to many nonprofit organizations and companies that serve the nonprofit sector.

In our conversation, Seth shared his analysis of CARES Act and how it impacts nonprofit organizations. As a bonus, Seth shared some emerging industry trends and insights that he’s seeing across the sector. It’s an incredibly valuable conversation that you don’t want to miss.

Seth helped us answer questions like:

What are the eligibility requirements for nonprofit organizations to access the benefits of the stimulus package? Can organizations of all sizes access these benefits, or is this only for very small organizations?

Are all nonprofits eligible – for example, can faith-based organizations access these benefits?

Following up on that, I know a lot of faith-based organizations will be concerned about “strings attached” to this money. What can you tell us about those concerns, and whether there would actually be any government strings?

What about advocacy and membership organizations – are they eligible to access the stimulus package benefits?

What kinds of things can the loan funding be used for by nonprofits? Are there any limitations or restrictions?

Can you talk about the loan forgiveness aspect of this stimulus package? Are there specific things that a nonprofit must do or must not do in order for these loans to eventually be forgiven?

Are there any risks to nonprofits in accepting this stimulus help from the federal government?

Can you talk with us about the Charitable Giving Incentive that’s baked into this plan? What’s included in that aspect of the stimulus. Do you see this as something that might be a one-and-done to impact charitable giving just in 2020, or is this something you think could get extended over the longer-term?

Is there anything else about this stimulus package that you think nonprofit organizations should be aware of and/or concerned about?

About Seth Perlman

Seth Perlman has been providing legal counsel to the philanthropic sector for more than thirty years. He works with large public charities, private foundations, fundraising professionals, for-profit businesses engaged in philanthropy, international NGOs and social enterprises.

Seth assists clients to optimize their ability to achieve mission by advising on matters relating to organizational structure, governance, regulatory compliance and nonprofit commercial activities. He advises social entrepreneurs seeking to provide social benefit through non-traditional for profit organizational structures.

Seth has litigated in several state and federal jurisdictions on issues relevant to the philanthropic community. He is an outspoken advocate for the sector through his participation with nonprofit trade associations including the Association of Fundraising Professionals, the Association of Direct Response Fundraising Counsel, Independent Sector, and the Nonprofit Coordinating Committee of New York. He is a founding board member of the Charity Defense Council in support of their mission “to change the way people think about changing the world”.

Seth is an advisor to C-level executives and the boards of a broad range of U.S. nonprofits. He sits on the boards of philanthropic organizations in Canada, France, Germany, and the Netherlands.