COVID-19 Resources for Nonprofits

The COVI-19 pandemic has created new challenges for nonprofits yet their services continue to be in high demand.  Here are a few resources available to nonprofits during this unprecedented time.

Communication Tools

A top priority during this time should be communication; communication with board members, donors, employees, volunteers and the community.  Most employees are working remotely, and board meetings are being held virtually. 

Several online services are providing free services for a limited time to assist organizations through this crisis.

• Microsoft Teams is offering a 6 month free subscription.
• GoToMeeting is offering the use of its services for 3 months for health care providers, educational institutions, municipalities and nonprofit organizations.
• Dropbox, Salesforce and Slack are offering a 3 month free subscription to their services for nonprofits.

Emergency Funding

United Way of Allen County

The United Way of Allen County has created the Emergency Relief Fund to fund nonprofit organization that work to provide support for immediate basic needs and economic stability.  Initial funding priorities will specifically aim to increase food distribution, food support for seniors and those with disabilities, emergency housing and shelter support, and medical support services such as translation and transportation. 

In addition, the United Way released funding restrictions to partner agencies to allow flexibility of use according to their individual operational needs for 60 days as they respond this community crisis.

Foellinger Foundation

Foellinger Foundation has provided support for nonprofits through its Innovative Rapid Grants and Emergency Response Rapid Grants.  The Innovative Rapid Grants are for those “out-of-the-box” ideas of addressing COVID-19.  Emergency Response Rapid Grants may be used for purchasing additional cleaning or other supplies, resources to help respond to community needs, addressing workforce needs, or other operational needs. 

AWS Foundation

The AWS Foundation is granting up to $5,000 to support organizations with incremental expenses directly related to the pandemic. 

Paycheck Protection Program Loans

501(c)(3) organizations, including churches, with 500 or fewer employees are eligible for loans guaranteed by the federal government.  The loans are overseen by the Small Business Administration (SBA) but issued through banks.  The maximum loan amount is the lesser of, 2.5 times the average monthly payroll costs for the one-year period preceding the date of the loan or $10 million.  The funds may be used for payroll costs, group health care benefits and insurance premiums, mortgage interest, interest on other debt incurred before February 15, 2020, rent and utilities.  If the loan funds are used for specific expenses, all or a portion of the loan may be forgiven.

Economic Disaster Injury Loans

Private nonprofit organizations or 501(c)(19) veterans organizations with less than 500 employees are eligible for a loan advance from the SBA that will not need to be repaid.  The SBA previously indicated that the first $10,000 would act as an advance that would be forgiven; however, the SBA is now communicating to applicants that the amount of the advance will be $1,000 per employee, determined by the number of pre-disaster (as of January 31, 2020) employees, up to a maximum of $10,000.   

Tax Relief

Form 990 Extension

In Notice 2020-23, the IRS has extended most all returns with a filing deadline or payment on or after April 1, 2020 and before July 15, 2020 to July 15, 2020.  This includes Form 990, 990-T and 990-PF. 

Delay of Payment of Employer Social Security Taxes

The employer’s portion of Social Security tax deposits due on or after the enactment date of the CARES Act through December 31, 2020 may be deferred.  Half is due by December 31, 2021 with the remainder due by December 31, 2022.  This is not available to organizations that participate in the Paycheck Protection Program.

Employee Retention Credit

Organization’s may receive a payroll tax credit of up to $10,000 for each employee on the payroll when certain conditions are met.  The credit is effective for wages paid after March 12, 2020 and before January 1, 2021.  This is not available to organizations that participate in the Paycheck Protection Program.

Unemployment

Under the CARES Act, nonprofits that are a reimbursable employer for state unemployment taxes, may be reimbursed for half of the cost of benefits provided to laid off employees through December 31, 2020.

Posted by: Carrie Minnich, CPA