Governor Baker Signs FY21 State Budget

On Friday, December 11, Governor Baker signed a $45.9 billion budget for the remainder of the fiscal year, which will cover state finances through June of 2021. Throughout the budget process, MNN worked with legislative leaders to advocate for the following nonprofit relief provisions:

  • An extension of the payment deadline for employer unemployment insurance costs: The final FY21 budget included a 6-month deadline extension for nonprofit employers that self-insure for their unemployment costs. Without this deadline extension, nonprofits across the Commonwealth were facing large balloon payments owed for unanticipated COVID-19 layoffs that occurred from March to December of 2020. As a result of the delay – which was written into the budget as Outside Section 81 – self-insured nonprofits will now have through June of 2021 to financially plan and secure the resources necessary to make their unemployment insurance payments.
  • Support of charitable giving incentives: This year, MNN continued advocacy at the federal and state levels for policy incentives that support charitable giving. The FY21 budget adopted a one-year delay of the state charitable tax deduction, which was scheduled to be restored for contributions made in 2021. The one-year freeze means that without further legislative action, the deduction would become available for contributions made in 2022. MNN continues to advocate for the restoration of the deduction in order to support individual giving to nonprofit organizations.
The FY21 budget also included an additional $5 million to Community Foundations across Massachusetts to support local giving to individuals and charitable nonprofits. See this summary for an overview of the funding levels for key priorities across education, health, human services, arts and culture, economic development, and more.

With questions or for more information, please contact MNN’s Director of Government Affairs, Danielle Fleury, at dfleury@massnonprofitnet.org.