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.

Connecticut Association of Nonprofits wants nonprofits in Connecticut to be aware of the White House plan because it could influence personnel decisions for many nonprofits. Nonprofits, the same as all employers, pay Social Security and Medicare tax on wages. So we asked the National Council of Nonprofits, to which members of CT Nonprofits belong through your membership in our Association, to summarize them main components of the President’s proposal as presented during a White House conference call last week.

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

Follow the link for more information from the official White House fact sheet. Please note that 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. Connecticut Association of Nonprofits and the National Council of Nonprofits will continue to advocate for public policies that support a healthy and vibrant nonprofit sector.