The New England Not-For-Profit Accounting Advisor

As disruptive as the year has been for not-for-profit organizations, 2020 might end up being a better year for charitable giving. The potential for higher tax rates and decreased exemptions from estate and gift taxes under a new presidential administration may lead many high-net-worth individuals to increase charitable giving during 2020. At the same time, individual and corporate donors can benefit from temporary charitable giving incentives in 2020 that are available under recent tax law changes.

Topics: tax returns, individual tax, not-for-profit, charitable donations, IRS, NFP, S Corporation, charitable giving, C Corporation, Charitable Contribution Deductions, COVID-19, CARES Act, PPP, charitable contributions, high-net-worth, AGI

A key deadline for organizations that received a Paycheck Protection Program (PPP) loan is fast approaching. The PPP has a safe harbor for bringing back Full Time Equivalent (FTE) headcount that is measured on Dec. 31, 2020. Employee headcount is vital to determining PPP loan forgiveness applicability since the purpose of the COVID-19 stimulus program was to help organizations retain their employees. Organizations looking to take advantage of the safe harbor will have to be mindful of their FTE numbers, particularly when completing their PPP loan forgiveness application, which also has stringent timeline guidance. PPP loan forgiveness applications must be submitted to the PPP lender within 10 months of the end of the Covered Period (an 8-week or 24-week tracking period of the PPP loan).

Topics: not-for-profit, NFP, COVID-19, PPP, OSHA, SBA, PPPFA, PPP Loan Forgiveness, Loan Necessity Questionnaire, FTE, Full Time Equivalent, Covered Period, CDC, DHHS

Like most aspects of the workplace, recruiting norms have changed. While unemployment rates remain high, many employers find themselves struggling to connect with the right candidates. Even as some are receiving a high number of applicants, they encounter new challenges, such as meeting the changing needs of qualified candidates who remain in high demand.

According to the Society for Human Resource Management (SHRM), job seekers in today’s employment market are primarily looking for safety, consistency, stability and longevity. Be sure to incorporate your attention to these needs into your recruiting efforts.

Topics: not-for-profit, recruitment, COVID19, COVID-19, SHRM, hiring, career, unemployment, brand

Many not-for-profit organizations were forced to completely shutter operations because of the COVID-19 pandemic, making them eligible candidates for the Employee Retention Credit (ERC) benefit in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The credit can be claimed quarterly to help offset the cost of retaining employees. It is important to note that the ERC is only available for organizations that did not receive a Paycheck Protection Program (PPP) loan. The ERC is provided by way of a payroll tax credit covering the period March 13, 2020 through Dec. 31, 2020.

Topics: tax-exempt, not-for-profit, IRS, COVID19, FMLA, COVID-19, CARES Act, COVID, ERC, program guidance, Employee Retention Credit

Not-for-profit boards play a key role in developing an organization’s potential by bringing expertise in a variety of fields, including accounting and risk management. The pandemic was extremely disruptive to not-for-profits, which underscores the importance of providing guidance and understanding the COVID-19 impact. All of these factors are also vital to conceptualizing future operational and endowment investment strategies. Management and board members should continue to work together to overcome any lingering repercussions from the pandemic and position the organization for the next chapter. The following are four elements of COVID-19 recovery initiatives that your board should understand.

Topics: not-for-profit, Financial Statement, Endowments, COVID19, COVID-19, CARES Act, Paycheck Protection Program, PPP, SBA, COVID, Stimulus

Not-for-profit organizations that receive federal funds are subject to the requirements of the Uniform Grant Guidance (UGG), and the Subpart F Single Audit. For several reasons, from the introduction of new federal COVID-19 relief programs to the disruption that accompanied mass shelter-in-place orders, the COVID-19 pandemic is changing what the single audit may look like in 2020 and for your organization’s fiscal year. The following provides a brief recap of what to expect for your single audit in 2020.

Topics: reporting requirements, not-for-profit, compliance, OMB, NFP, single audit, Uniform Grant Guidance, COVID-19, CARES Act, Office of Management and Budget, UGG, GAQC

Federal aid swiftly followed the disruption caused by the COVID-19 pandemic, with new programs coming from the Coronavirus Aid, Relief and Economic Security (CARES) Act and additional funding to existing programs. For-profit and not-for-profit organizations of all types received support in the form of grants and may now find themselves with new reporting requirements. For-profit organizations that received coronavirus relief funds may even be facing their first Single Audit under the Office of Management and Budget (OMB)’s Uniform Grant Guidance (UGG).

Topics: not-for-profit, compliance, OMB, NFP, single audit, Uniform Grant Guidance, COVID-19, PPP, extension, payment protection plan, Office of Management and Budget, Coronavirus Relief Fund, Education Stabilization Fund, UGG

In late July, Senate Republicans released a proposal for the fourth round of coronavirus relief legislation. The collective of bills involved are being referred to as the Health, Economic Assistance, Liability Protection and Schools (HEALS) Act. The $1 trillion proposal contains nine separate bills that cover everything from expansions of existing coronavirus relief measures to additional funding for educational institutions. Below are five key proposals that could affect not-for-profit organizations..

Topics: not-for-profit, NFP, university, tax credit, COVID-19, Paycheck Protection Program, Employee Retention Credits, PPP, PPP Loan, Heals Act, Senate Republican, Stimulus, Republican Party

Healthcare entities that are conducting research related to COVID-19 treatment should note that U.S. intelligence officials have detected possible interference from foreign actors. The Federal Bureau of Investigation (FBI) reported in early July that it detected threats from China related to U.S. COVID-19 treatment and intellectual property.

.In an interview with the Washington Post, FBI Director Christopher Wray indicated that Chinese cyber actors have attempted to steal intellectual property, public health records, and information about vaccines, treatments, and testing from U.S. medical facilities, biotech labs, and academic institutions to send to the Chinese government.

Topics: internal control, not-for-profit, NFP, cybersecurity, cyber risk assessment, cyber risks, cyber attacks, data attacks, data privacy, COVID-19, FBI

On July 17, the Federal Reserve Board officially expanded its Main Street Lending Program to make it easier for not-for-profit organizations to access its low-interest loan facilities. Organizations that do not qualify for the Paycheck Protection Program or that do not have an existing lending relationship may have been squeezed out of the federal relief efforts designed to offset the disruption from the COVID-19 pandemic. Proposed changes to the Main Street Lending Program (MSLP), announced in June, were more or less approved, with a few additional adjustments to minimum number of employees and rules surrounding donations.

Topics: not-for-profit, NFP, COVID-19, Main Street Lending Program, Nonprofit New Loans, Nonprofit Expanded Loans