As of Thursday, April 16, there are roughly 22 million Americans who have filed for unemployment in the last month. This is larger than the population of some countries.
This week, the U.S. Treasury Department also began mailing out or direct depositing checks into the bank accounts of Americans who qualify for a $1,200 payment.
It could take several weeks for all the checks to be sent out, so if you’ve not received yours, do not fret. You can check your status at IRS.gov.
For many, $1,200 will help with groceries, pay bills or offset costs incurred by not working.
For many others, especially in Sedona, the $1,200 is effectively being held temporarily until given to a landlord.
That $1,200 is nice, but financially unnecessary for many residents here who are independently wealthy, retired with a large nest egg or still earning money from a large pension or stock market investments. That $1,200 is really a drop in the bucket to their already expansive wealth.
For others, that $1,200 means the difference between staying in their home or possible eviction when this crisis passes.
It was suggested by a former Sedona city councilman, and floated by several nonprofit organizations on the local and state level, that those who can afford to ignore a $1,200 payment into their accounts should be strongly encouraged to donate it to someone in need.
It’s like winning a small lottery prize: It wasn’t there yesterday, you didn’t go out of your way to earn it and you won’t really miss it tomorrow. But it can do tremendous good for someone far less fortunate.
After all, in the era of social distancing when we are doing our best to protect each other, wouldn’t donating money to a needy family or a waiter, bartender, cashier or service worker be the ultimate expression of that charity?
On my way home earlier this week, noticing the lack of traffic in Uptown, I took a photo in the roundabout at Jordan Road. Not a single moving car is present.
Some residents commented on the eeriness of a completely empty Uptown.
Others express their sorrow knowing that a completely empty Uptown meant thousands of Sedona workers were unemployed and struggling.
Still others commented that it was good and Uptown should always be like that.
Certainly some of those comments meant they just dislike tourists. We all understand; tourists bring with them traffic, crowded trails, longer lines at popular places and waits at restaurants.
But conversely, tourists provide 75% of our city’s tax revenue, $24.4 billion to Arizona businesses and $1 billion in state taxes. And those crowds of tourists are mainly in Uptown where most locals don’t shop. The tens of thousands of dollars they spend daily on T-shirts or souvenirs, crystals, clothing, Jeep tours, fudge or food means that our workers can go home with a paycheck at the end of the week.
Still others made those comments because they see no value in Uptown whatsoever and hate tourists as a class — of course forgetting they were once a tourist here, too — but let’s just ignore that hypocrisy. They were the last “good” tourist and closed the door behind them.
These are the folks who are not reliant on the city’s tourist economy for their livelihood. Most likely, they are also the ones least needing that federal check for $1,200 they did not earn. The folks who loves quarantine and social distancing and want to lock the doors and barricade the roads because it means visitors stay away from Sedona and don’t interfere with their lives probably need that $1,200 the least.
Thus, it should be easy to tell who among them should donate their $1,200 to someone who does need the tourists in their shop, or tourists eating at their restaurant tables or annoying tourists asking for knickknacks, souvenirs or things “in the back” that they can take home to wherever they came from so that these hard-working employees can feed their families and pay their rents. These folks are morally obligated to donate that money to someone who needs it most because they want workers to stay away from their jobs.
For the rest of us, if we can afford to live without a $1,200 check, please consider donating it. Donate it to the Sedona Community Food Bank. Reach out to a small business owner and ask which unemployed worker or workers need help most and donate it directly. If your favorite small business is closed, contact the Sedona Chamber of Commerce or ask for help on social media and see if someone can put you in touch with the owner so you can help a worker.
We guarantee workers will appreciate any help you can provide.
Christopher Fox Graham
Managing Editor
From the About the Alliance of Arizona Nonprofits:
Arizona residents and taxpayers receiving a stimulus check in the wake of the COVID crisis are increasingly indicating that they will be seeking to donate these funds to nonprofits. Charity Navigator, which evaluates and rates nonprofits, has seen a correlation between stimulus checks and an increase in charitable giving.
“We are hearing that many people are interested in donating their stimulus checks to Arizona nonprofits because they may not need the money themselves at this time,” said Kristen Merrifield, CEO at the Alliance of Arizona Nonprofits. “Given the financial impact this pandemic has had across the sector and the economy, we are excited to witness the willingness of individuals to try to help those in need in our communities. We want to provide general guidance for those making this decision with their stimulus checks.”
One such donor, who did not wish to be named, generously gave to ten different organizations on April 7 using her stimulus check funds. They said “I gave away my stimulus check because they (nonprofits) needed it more than I did.”
The Alliance of Arizona Nonprofits has developed 5 Guiding Principles for those wishing to donate their stimulus funds.
- Use AZGivesDay.org, Charity Navigator and Guidestar.
Use online tools to find, research and vet who you give to.
“Before making a donation, vetting the organization you’re about to support ensures its credibility and provides comfort in knowing the money will be directed where it’s needed most,” says Merrifield. - Make your gift for general operating support rather than a specific program.
This allows the organization’s leaders to decide how to use the money themselves. “Nonprofit leaders and their management teams understand how best to allocate funds donated to them,” said Jennifer Purcell, VP of Community Engagement at the Alliance of Arizona Nonprofits. “They are then able to use these dollars where it will be the most impactful for the organization and those they serve.” - Tax Ramifications: There may be tax ramifications to consider and you should consult your financial advisor if you have questions.
“Your tax advisor can assist you in confirming the selected organization is a public chairty and the benefit to your tax situation based on your circumstances. The stimulus payment is not taxable income to you” says Carolyn Sechler of Sechler Moran CPAs. “Individuals can elect to deduct cash contributions, up to 100% of their 2020 adjusted gross income, on itemized 2020 tax returns.
“The new deduction available for 2020 as part of the CARES Act is only for cash gifts up to $300 per taxpayer ($600 for couples) that go to a public charity, not a private foundation,” says Sechler. This is particularly beneficial to taxpayers who take the standard deduction when filing their taxes (in other words for taxpayers who do not itemize their deductions).
Charities and nonprofits should make it clear whether they qualify as a charitable organization, making it possible for donors to claim a tax deduction. Contributions and gifts to individuals are never tax deductible. - Giving Locally: Local Funds Can Make a Big Impact.
Arizona’s nonprofits are losing revenue at an astonishing pace according to a recent poll by the Alliance. This week, the Alliance received 306 responses to its updated Covid-19 Nonprofit Impact Pulse Poll, and it is reporting 98% of responding organizations have been impacted significantly by the COVID-19 crisis. 86% of those impacted report decreased revenue, and 76% indicate a disruption of services to clients and communities. Total revenue loss reported thus far in Arizona is nearly $40M. The anticipated loss through then end of the respondents’ fiscal year is nearly $433M. These findings are current as of May 4, 2020. - Keep a Record.
You may receive a letter or email of acknowledgement from the charity you donate to, and it’s important to keep that transactional record. Keep records allowing you see how the donation was made (cash/check/credit card), and be sure to make sure the statements note if you received any goods or services in exchange for the donation, and their value.
The Alliance of Arizona Nonprofits is a statewide trusted resource and advocate for the nonprofit community. The Alliance’s mission is to unite, strengthen and advance Arizona’s nonprofit sector and is comprised of more than 1,000 members – both nonprofits and those in the community who support them – across the state. Since 2004, the organization has been dedicated to furthering the common interests of Arizona’s nonprofit community and envisions an Arizona where all nonprofits are valued, empowered and thriving, with support from grassroots efforts like Arizona Gives Day. For more information, visit www.arizonanonprofits.org, or email azgives@arizonanonprofits.org.
