Nonprofit Organizations

Are nonprofit organizations eligible for loans from the U.S. Small Business Administration?

Some, but not all, are eligible. The SBA makes loans to businesses to repair or replace disaster damages to property owned by the business, including real estate, machinery and equipment, inventory and supplies. Nonprofit organizations such as charities, churches and private universities may be eligible for these types of loans. For more information about available loans, see the Loans section of this handbook.

What are other sources of low-interest loans for nonprofit organizations affected by the WTC disaster?

In the aftermath of the WTC disaster, loan programs are developing. For example, Seedco (Structured Employment Economic Development Corporation) is prepared to offer short-term (6-12 months), zero percent interest loans of up to $500,000 to organizations that qualify for tax exemption under Section 501 of the Internal Revenue Code and have been directly or indirectly affected by the WTC disaster. Additional eligibility criteria for borrowers include location within the five boroughs of New York and other affected communities and a demonstration of losses from the disruption of operations due to the disaster. Examples of losses include:

the destruction or inability to access physical assets or software necessary to conduct operations;
delayed receipt of funds from government or other contracts for the delivery of services that result in the inability to meet payroll or other current expenses;
the inability to conduct fund-generating activities (such as artistic performances) that are central to the borrower's mission; and
delays in scheduled fund development activities that enable the organization to finance ordinary course operations.

For more information, you may call Catherine Gill at (212) 204-1301 or Peter Oliver at (212) 204-1345, or visit www.seedco.org.

What other types of assistance and services are available specifically to nonprofit organizations?

The Nonprofit Coordinating Committee (NPCC) offers a listing of organizations that have offered to donate their resources (space, technology or advice) or assistance to nonprofit organizations affected by the WTC disaster online at www.npccny.org/disaster.htm. To list resources needed by your organization, email the information to dmyers@npccny.org. Include a brief description of the item(s) needed, and the name, phone number and email address of the person to contact for more information.

NPower NY is offering technology assistance to nonprofit organizations in lower Manhattan whose technology was impacted by the disaster, as well as to those providing services to individuals affected by the WTC disaster or assisting with recovery efforts. Interested organizations should contact NPower NY at (212) 677-9622 (phone), (212) 677-9248 (fax) or september11@npowerny.org (email). Additional information can be found online at www.npowerny.org.

The Fund for the City of New York is making free consulting services available to any nonprofit organization in need of disaster-related technology assistance. To request this assistance, contact: Alicia Altmueller, (212) 590-9400, email: aaltmueller@fcny.org or Joshua Peskay, (917) 747-1154, email: jpeskay@fcny.org.

The Lawyers Alliance for New York is addressing business and transactional legal needs of nonprofit groups that are affected by or responding to the WTC disaster, and is maintaining a list of nonprofit organizations that are collecting funds for disaster relief or otherwise offering services to those affected by the WTC disaster. Call (212) 219-1800, ext. 223 for Lori Moses or ext. 228 for Erica Lane. You may send them an email to lmoses@lany.org for Lori Moses or elane@lany.org for Erica Lane.

The New York Regional Association of Grantmakers is acting as a clearinghouse for philanthropies, listing information on its website at www.nyrag.org on the kind of aid foundations are offering and, in some cases, where displaced foundations have temporarily relocated.

The Nonprofit Finance Fund has created a Nonprofit Recovery Fund to benefit groups that have experienced damage to facilities and equipment or operational problems due to increased demand or interruption of income due to the WTC disaster, providing flexible financial aid packages, including grants, loans or a combination thereof. For more information contact: Ann McKinnon, (212) 868-6710, fax: (212) 268-8653, email: ann.mckinnon@nffusa.org.

Can my organization be reimbursed for expenses incurred in responding to the WTC disaster?

Possibly. The New York State Emergency Management Office (SEMO) has opened a hotline to help private nonprofit organizations recoup expenses resulting from their response to the WTC disaster. Private nonprofit organizations such as power plants, sewer and water treatment plants, emergency medical care, fire protection, communications facilities and emergency response organizations could be eligible for federal reimbursement. The assistance may be used for repairing damages to their facilities. Organizations located beyond the New York metropolitan area, such as emergency service providers who responded to the attacks, are also eligible for reimbursement. If you believe your organization may be eligible, call (866) 712-3491 to register for assistance. SEMO will then schedule a formal applicant briefing to explain eligibility requirements and the application process.

What extensions or other relief are available for tax filings for organizations affected by the WTC disaster?

See the Tax section of this handbook for a discussion of the extensions and other relief granted with respect to Federal and New York tax filings.

What is the status of the offices of the Charities Bureau of the New York State Attorney General's Office? Are any extensions being granted for the filing of annual financial reports with the Charities Bureau in light of the WTC disaster?

The Attorney General's Office's at 120 Broadway, New York, NY 10271, (212) 416-8000 has resumed operations. Charities Bureau representatives have indicated that the Attorney General's Office is accepting the federal extension for the filing of tax returns. If you have difficulty reaching an Attorney General employee by telephone, you may try email communication at www.oag.state.ny.us/emailag or check the Charities Bureau's website at www.oag.state.ny.us/charities/charities.html. Otherwise, you may call the Albany office number at (518) 474-7330 and a message will be conveyed to the office in New York City.

For additional resources provided to nonprofit organizations see the Other Resources section of this handbook.