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501(c)(19)s, nonprofits with "historical significance") could be eligible for direct assistance as <br />beneficiaries. <br />Treasury Response: Definition of Nonprofit: The final rule expands the definition of <br />nonprofits to mean 501(c)(3) organizations and 501(c)(19) organizations.234 The 501(c)(3) <br />classification includes a wide range of organizations with varying charitable or public service- <br />oriented goals (e.g., housing, food assistance, job training). As discussed above, these nonprofit <br />organizations often experienced hardship due to increased needs for services combined with <br />decreased donations and other sources of funding. In response to comments, Treasury has <br />expanded the definition of nonprofit to include 501(c)(19) organizations, which includes <br />veterans' organizations, to provide recipients more flexibility and in alignment with the <br />definition of nonprofit adopted by the CARES Act, wherein 50 1(c)(3)s and 501(c)(19)s were <br />eligible for assistance.235 <br />Public Comment: Reporting Requirements: One commenter asked Treasury to clarify if <br />nonprofits that receive direct assistance as beneficiaries are required to comply with guidelines <br />and reporting requirements. <br />Treasury Response: Reporting Requirements: Nonprofits that receive direct assistance as <br />beneficiaries are not subrecipients under SLFRF and are therefore not required to comply with <br />SLFRF reporting requirements. However, the recipient must comply with SLFRF reporting <br />requirements, which would require reporting obligations and expenditures for assistance to <br />234 § 35.3 Definitions. <br />235 Treasury considered expanding the definition of nonprofit to include 501(c)(6) organizations, as Congress later <br />did in the Coronavirus Response and Consolidated Appropriations Act of 2021, but ultimately decided to retain the <br />original CARES Act definition. To the extent impacted by the pandemic, 501(c)(6) organizations may be eligible to <br />receive funds to support eligible uses that align with their overall purpose (e.g., tourism promotion in aid of an <br />impacted industry). <br />160 <br />