The COVID-19 pandemic has affected businesses and not-for-profit organizations alike. With Coronavirus Aid, Relief, and Economic Security (CARES) Act signed into law, what options do organizations have to receive funds?
The Not-for-Profit team wants to share with you a special information sheet answering questions you may have:
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One of the strongest predictors of a not-for-profit’s long-term survival is multiple revenue sources. Many organizations with only one or two found that out that the hard way when they failed during the 2008 recession.
The same is likely to be true for not-for-profits that do — or don’t — survive the current novel coronavirus (COVID-19) crisis.
Continue Reading Finding Multiple Revenue Sources During a Crisis
Nearly everyone has heard about potentially receiving an Economic Impact Payment (EIP), which the federal government is sending to help mitigate the effects of the coronavirus (COVID-19) pandemic. The IRS reports that in the first four weeks of the program, 130 million individuals received payments worth more than $200 billion.
However, some people are still waiting for a payment. And others received an EIP but it was less than what they were expecting. Here are some answers why this might have happened.
Continue Reading Was Your Economic Impact Payment Lower Than Expected?
The Small Business Administration (SBA) and Department of Treasury released the Paycheck Protection Program (PPP) Loan Forgiveness Application with detailed instructions on Friday, May 15, 2020.
The SBA form has instructions that include:
The novel coronavirus (COVID-19) crisis has put enormous financial stress on many not-for-profits — whether they’re temporarily shut down or actively fighting the pandemic. If cash flow has dried up, your organization may need to do more than trim expenses.
Here’s how to assess your financial condition and take appropriate action.
Continue Reading How is Your Not-for-Profit’s Financial Situation?
Limited staff and financial resources during the novel coronavirus (COVID-19) pandemic may have your not-for-profit looking for new ways to achieve your mission. Have you considered partnerships?
Partnerships with a like-minded organization potentially enables you to pool funds, staff and supporters — temporarily or permanently.
Continue Reading Setting Up Not-for-Profit Partnerships During COVID-19
The coronavirus (COVID-19) pandemic has affected many Americans’ finances.
Here are some answers to questions you may have right now.
My employer closed the office and I’m working from home. Can I deduct any of the related expenses?
Unfortunately, no. If you’re an employee who telecommutes, there are strict rules that govern whether you can deduct home office expenses. For 2018–2025 employee home office expenses aren’t deductible. (Starting in 2026, an employee may deduct home office expenses, within limits, if the office is for the convenience of his or her employer and certain requirements are met.)
Be aware that these are the rules for employees. Business owners who work from home may qualify for home office deductions.
Continue Reading Your COVID-19 Tax Questions are Answered Here
On Thursday, April 30, 2020, the IRS released Notice 2020-32. Specifically, “this notice clarifies that no deduction is allowed under the Internal Revenue Code (Code) for an expense that is otherwise deductible if the payment of the expense results in forgiveness of a covered loan pursuant to section 1106(b) of the Coronavirus Aid, Relief
As a result of the coronavirus (COVID-19) crisis, your business may be using independent contractors to keep costs low. But you should be careful that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be an expensive mistake.
The question of whether a worker is an independent contractor or an employee for federal income and employment tax purposes is a complex one. If a worker is an employee, your company must withhold federal income and payroll taxes, pay the employer’s share of FICA taxes on the wages, plus FUTA tax. Often, a business must also provide the worker with the fringe benefits that it makes available to other employees. And there may be state tax obligations as well.
These obligations don’t apply if a worker is an independent contractor. In that case, the business simply sends the contractor a Form 1099-MISC for the year showing the amount paid (if the amount is $600 or more).
Continue Reading Hiring Independent Contractors During COVID-19
The novel coronavirus (COVID-19) pandemic has forced many of us to work differently — whether it’s isolated at home or in-person wearing facial masks and other protective gear. Even if your not-for-profit’s board of directors usually meets in person, current events strongly suggest the need for a Plan B, such as virtual board meetings.
Here are some best practices for holding virtual board meetings.
Anticipate Hurdles
With many board members under continued stay-at-home or quarantine orders, virtual meetings can enable more people to attend and your board to achieve a quorum. But before you set up a Zoom, WebEx or other online video meeting, check your state’s laws. Some states, for example, allow not-for-profit boards to hold teleconferences but not videoconferences. Your organization’s bylaws might also prohibit virtual meetings.
Continue Reading Best Practices for Not-for-Profit Virtual Board Meetings