It has been our goal throughout the pandemic to keep you informed about important updates as they become available. Below you will find a curated list of nonprofit resources to help your organization prepare and respond to these updates and ongoing changes. Please continue to check back for updates and more resources. Questions please contact: [email protected]
*Disclaimer: The information provided below is informational in nature and not intended to be legal or financial advice. *
Continued COVID-19 Recovery Resources
Understanding How Nonprofits Can Best Use Employer and Health Insurance Tax Credits, NYCON
Refundable payroll tax credit taken against employment taxes that encourages businesses impacted by the pandemic to keep employees on the payroll. Eligibility: Fully or partially suspended business operations by COVID-19 governmental order, or Gross Receipts Decline.
* See full slides for comparison of 2020 and 2021 credit periods and eligibility criteria.
IRS is only allowing Employers with less than 500 employees to request an advance payment of the credit (up to 70% of the average quarterly wages paid by the employer for the same qtr. in 2019.
- 30-day lookback period is repealed, allowing raises and bonuses to be counted towards the credit.
- New legislation retroactively allows employers who received a PPP loan, to claim the credit in 2020 as well as 2021, just not for the same wages.
- Claiming the ERTC (2021): eligible employers report and claim credit on federal employment tax returns; for most this is the quarterly Form 941.
Health Insurance Tax Credits, NY State of Health, NYSOH
- Eligibility Factors
- Advance Premium Tax Credits
- Coverage for Unemployed New Yorkers
- COBRA Continuation Coverage and Premium Assistance
- Extended Open Enrollment
Nonprofit Relief: Opportunities in the American Rescue Plan, Institute of Nonprofit Practice
- Shared Work Program
- Employee Retention Tax Credits
- Paid Leave Tax Credits
Additional Resources on:
- PPP and ERTC Double dipping
- Maximizing PPP Forgiveness and ERTC
FEMA Resources- Non-Medical Nonprofits Applying for FEMA Funding, NYS
New York State is launching a targeted initiative to provide information and training to non-medical nonprofits and intermediary organizations applying for FEMA funding to reimburse costs incurred as a direct result of the COVID-19 pandemic from January 20, 2020 – present.
Non-Medical Private Non-profit
As a nonprofit, you must have incurred a minimum of $3,300 in expenses resulting from responding to the COVID-19 pandemic. Additionally, a nonprofit must qualify as an eligible applicant before initiating an application in the FEMA Grants Portal; tax-exempt status and facility eligibility must be established first.
FEMA Public Assistance specific to DR 4480-NY/COVID-19: Public assistance is a reimbursement program that provides financial assistance to eligible applicants for some eligible costs incurred for response and recovery activities as a result of a declared emergency.
Two-Part Webinar Series: COVID-19 Relief Package
View the full recording of the Part I Webinar- Nonprofit Guide to the COVID-19 Relief Package, presented by Courtney Curatolo, director SBDC at JCC
View the full recording of the Part II – Understanding the Impact of PPP Loan Forgiveness on Your Nonprofit’s Finances and Reporting, presented by David M. Rottkamp, CPA, Partner, Not-for-Profit Practice Leader, GRASSI & NYCON Board Treasurer and Andrew Marietta, VP, Regional Development, NYCON .
*Finances and Reporting section (slide 14) begins at 29:21 in the recording.
Small Business Administration Resources:
- First Draw PPP Loan Application
- Second Draw PPP Loan Application
- PPP Forgiveness Resources
- FAQ for Faith-Based Organizations in PPP and EIDL
- SBA Website: COVID-19 EIDL Application
- Small Business Development Center (SBDC) at JCC: #716-338-1024 or www.sbdcjcc.org.
- Chautauqua County Chamber of Commerce: #716-484-1101 or www.chautauquachamber.org
Year-End COVID-19 Relief Package
On Sunday December 27, 2020 the President signed into law a $900 billion coronavirus relief and stimulus package. Key provisions on pandemic relief portions for small businesses include:
- Paycheck Protection Program (PPP): $284 billion in forgivable loans, reopening the PPP loan program and creating a “Second Draw” for small businesses who have already exhausted their initial loan.
- Economic Injury Disaster Loan (EIDL): $20 billion to reopen the $10,000 EIDL grant loan program for small businesses.
- Shuttered Venue Operators: a new $15 billion grant program for eligible live venue operators that have experienced at least a 25% drop in revenue.
- Employee Retention Tax Credit (ERTC): expanding the employee retention tax credit.
The Small Business Administration will have 10 days to implement the new rules, more specific rules and guidance could be coming. Eventually, your financial institution should be able to advise your organization on the available loan programs.
- Guide to Small Business COVID-19 Emergency Loans | U.S. Chamber of Commerce, U.S. Chamber of Commerce *(as understood on 12/22/2020)
- Nonprofit Provisions in COVID Relief Legislation, National Council of Nonprofits *(as understood on 12/21/2020)
Paycheck Projection Program (PPP): The new law reopens PPP for any organization that did not apply before, and creates a “Second Draw” (PPP2) for organizations who have already exhausted their initial loan and meet eligibly criteria.
“Second Draw“- PPP2
Eligibility: Employers that employ 300 or fewer employees and demonstrate at least a 25% reduction in gross revenues between same quarters in 2020 and 2019.
- Loans can be for up to 2.5 times the organization’s average monthly payroll expenses. (3.5 times for restaurants and other hospitality businesses).
- Eligible expenses include: payroll, rent, mortgage expenses, utilities; with new expanded qualifying expenses for: operations and worker protection (PPE) expenditures, covered property damage and supplier costs.
- The period for expenses to count towards forgiveness will begin on the date of the loan origination and end on a date that is between 8 and 24 weeks.
- Loans are forgivable but must be spent on 60% on payroll costs, with the remaining 40% towards other non-payroll eligible PPP expenses.
- Loans of less than $150,000 will get a simplified forgiveness application.
Other new changes:
- Organizations that did not receive a loan under the original PPP1 cannot apply for a second draw PPP2 loan; however, they may still apply for a PPP1 loan.
- Organizations that receive a Shuttered Venue Operators grant cannot apply for a second draw PP2 loan.
- Organizations that receive an EIDL grant will no longer have their PPP loan forgiveness reduced by the amount of the EIDL grant.
*The loans for organizations still eligible for PPP1 loans and PP2 second draws will be available until March 31, 2021, or until the funds have been exhausted.
Economic Injury Disaster Loan (EIDL): The new law provides $20 billion in order to reopen the $10,000 Economic Injury Disaster Loan (EIDL) grant program for small businesses.
- Priority for the full amount will be given to small businesses with less than 300 employees, located in low-income neighborhoods, who have experienced a 30% reduction in gross receipts.
- The new law revises the rules so businesses can receive a full $10,000 EIDL grant and a PPP loan without the PPP loan forgiveness being reduced.
Shuttered Venue Operators Grant Program: The new law creates a new $15 billion grant program for eligible live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theatre operators, or talent representatives that have experienced at least a 25% drop in revenue. Organizations may not apply for a second draw PPP2 loan, if they receive this grant.
Read the initial information from the Small Business Administration; the SBA has not announced official guidance or released the application yet.
Read more in this informational Blog post from Tom Sharbaugh, a professor of practice at Penn State Law (shared by the Erie Nonprofit Partnership): Don’t Overlook the COVID Lifeline for Cultural Organizations – The Dreamweavers Guide (psu.edu)
*New York State- Creative Rebuild Initiative *added 1/13
Governor Cuomo announced a new funding opportunity in partnership with the Andrew Mellon Foundation. This fund will help support dozens of small-to-midsized community arts organizations and more than 1,000 individual artists over the next two-years. More details to be announced.
- Questions can be directed to: [email protected]
- Read the Transcript from the Governor’s State of the State Address
Employee Retention Tax Credit: The new law significantly expands the employee retention tax credit beginning on January 1, 2021; expiring on June 30, 2021.
- The new credit is 70% on $10,000 in wages per quarter (or a maximum $14,000 per employee through June 30th).
- Eligibility is now expanded to include employers who experienced a decline of more than 20%.
- Employers with 500 or fewer employees can claim the credit for wages to paid to employees irrespective of whether the employee is providing services.
- Employers can now also receive both the ERTC and a PPP loan, just not to cover the same payroll expenses.
Paid Sick Leave: Since April 1, employers with fewer than 500 employees have been required to grant paid leave to their employees for a variety of COVID-related reasons, under the two paid-leave provisions in the Families First Coronavirus Response Act (FFCRA). The new COVID-19 Relief legislation allows employers to voluntarily give these paid leaves through March 31, 2021; the mandate to provide the leave will end on December 31, 2020.
- Refundable payroll tax credits for employers that voluntarily offer paid leave to employees is extended until March 31.
- 12.5% tax credit for paid family and medical leave originally enacted in the 2017 tax law is extended through 2025.
Read more from the National Law Review: Paid COVID-19 Leave Extended Through March 31 (natlawreview.com)
Other Tax Provisions
Charitable Giving Incentives
Re-establishes the $300 above the line deduction for 2021; permits a $600 deduction for couples filing jointly in 2021. Extends for one year the increased limits on deductible charitable contributions for individuals and corporations.
Spring 2020-Overview of COVID-19 Legislation
*Disclaimer: This information is an overview; it is not legal or financial advice.*
*4/24– H.R. 266- Paycheck Protection Program and Health Care Enhancement Act was signed into law. Providing a total of $484 billion in new spending, including $310 billion in new funds for the Paycheck Protection Program (PPP), $50 billion more to the Economic Injury Disaster Loan (EIDL) program as well as $10 billion to the EIDL emergency grants program.
*4/16- SBA fund exhausted $349 billion stimulus and funds for disaster loans and emergency grants have also been exhausted. At this time the U.S. Small Business Administration has stopped accepting new applications for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.
Small Business Development Center at Jamestown Community College
Phone or online appointments available with advisors www.sdcjcc.org or #716-338-1024
What does this mean for Nonprofits?
On April 22, the New York Council of Nonprofits (NYCON) hosted a webinar, Paycheck Protection Program Round 2 and Round 1 Implementation, for more guidance on the interim funding bill.
The NY Funders Alliance provides an update, highlighting the new funding through H.R. 266 and links to resources specific to the bill.
New York Council of Nonprofits (NYCON) has a survey for nonprofit responses regarding experience with lends and applications for the Paycheck Protect Program (PPP). View results here.
Coronavirus Emergency Loans, Small Business Guide and Checklist, U.S. Chamber of Commerce (*4/25 new updated)
Coronavirus Aid, Relief, and Economic Security (CARES) Act
Coronavirus Aid, Relief, and Economic Security Act CARES Act (Pub. L. 116-132), National Council of Nonprofits
The CARES Act provides significant funding for governments, businesses, hospitals, schools and social support programs, among others. The National Council of Nonprofits provide an analysis of key provisions of interest in the nonprofit sectors.
Webinar-Guide to the CARES Act for Nonprofits, Courtney Curatolo SBDC at JCC (*added 4/7)
Families First Coronavirus Response Act
What the Families First Coronavirus Response Act (H.R. 6201) Means to Nonprofits, National Council of Nonprofits (*added 3/31)
The Families First Coronavirus Response Act includes a complex set of temporary paid leave mandates and employer reimbursement provisions, as well as funding for free coronavirus testing, food nutrition security, and Unemployment extension. The National Council of Nonprofits provides an analysis of what this bill means to nonprofits.
- Two weeks of Emergency Paid Sick Leave
- Twelve weeks of Emergency Family and Medical Leave
- Reimbursable Payroll Tax Credits
Tax Advice on Refundable Payroll Tax Credits, IRS.gov (*added 4/7)
Explanation of refundable tax credits available to small and midsize nonprofits and other businesses that are required to provide the paid leave; outlined in a Q&A format with 66 questions total.
Shared Work Plan Program
The Shared Work Program provides an alternative to laying off workers during business downturns by allowing them to work a reduced work schedule and collect partial Unemployment Insurance benefits for up to 26 weeks. Instead of cutting staff, you can reduce the number of hours of all employees or just a certain group.
Employer Resource Guide Webinar, United Way of Southern Chautauqua County (*added 3/30)
On March 26, the United Way of Southern Chautauqua County hosted a webinar with Elizabeth Cipolla SPHR, SHRM-SCP of Decisions Associates to talk with local nonprofit organizations about important coronavirus employer resources and updates. Below is a link to view the recording of this presentation, along with the powerpoint slides and handout materials.