In response to the financial impact of the COVID-19 pandemic, the CARES Act established the employee retention credit (ERC) to encourage employers — including nonprofits — to keep employees on the payroll. The credit has been expanded and increased for 2021, but it’s also not too late for eligible employers to amend their 2020 employment…
Tag: covid-19
COVID-19 Renews Focus on Fundraising Efficiency
COVID-19 has hit many nonprofits with a double whammy — fundraising has become more important due to a drop-off in revenues, yet the need to cut expenses makes it harder to fundraise. Nonprofits can’t afford to waste a single dollar on ineffective methods. But focusing solely on cost when evaluating different approaches generally isn’t the…
IRS Rules: Restructuring in Today’s Regulatory Climate
Some nonprofits have been forced to restructure their organizations due to the economic challenges of the COVID-19 pandemic. Fortunately, IRS rule changes from a couple of years ago make the restructuring process far easier than it once was. If you’re considering such a change, here’s what you need to know. How have the rules changed?…
What We Know So Far About COVID Philanthropy
COVID-19 spurred more than $11.9 billion in global philanthropy in the first six months of 2020. That’s just one of the findings in the Center for Disaster Philanthropy and information service Candid’s new report, Philanthropy and COVID-19 in the first half of 2020. In this report, Candid and the Center for Disaster Philanthropy explore the…
Surge in virtual events lowers revenue expectations
The COVID-19 pandemic has shifted fundraising from traditional events, such as annual galas and walkathons, to virtual happenings. But, according to research from the Peer-to-Peer Professional Forum, the revenues raised from these events often fall below projected revenues. The organization surveyed 120 North American nonprofits and found two-thirds already had hosted a virtual campaign in…
COVID-19 Changes the Landscape for Single-audit Compliance
COVID-19 and its economic impact have left the nonprofit niche financially vulnerable, with corporate and individual donations dropping precipitously for many organizations. Relief funding under the CARES Act has helped some nonprofits remain reasonably stable. But funding also will likely impose new single-audit requirements on recipients already struggling to keep their heads above water. The…
Survey: 3% to 38% of Nonprofits Could Close
Candid, a nonprofit information service, estimates that as many as 38% of organizations could be forced to close in the wake of COVID-19, vs. 4% in a typical year. The service looked at more than 300,000 U.S. nonprofits and considered 20 possible scenarios that fall into three categories. The 38% figure represents the direst scenario,…
Majority of Nonprofits Worldwide Report Donation Decline
A survey conducted by CAF America, a global nonprofit grant-making organization, found that 73% of the 880 organizations in 122 countries queried have seen a decline in contributions due to the COVID-19 pandemic. Half of those surveyed from April 30 through May 6, 2020, indicated that they expect to see revenue decline by more than…
Are You Covered? Potential Insurance Relief for COVID-19 Losses
The COVID-19 crisis and its economic fallout have many organizations hunting desperately for financial relief. While much has been made of the various governmental support programs, it’s also worth reviewing your insurance policy portfolio to determine if you qualify for coverage for some of your COVID-19-related losses and exposures. Below are some of the insurance…
The CARES Act: What’s in it for Nonprofits?
When Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in late March, much attention was paid to Economic Impact Payments for individuals and various types of assistance for businesses. But the 880-page law also contains some assistance that could prove critical to nonprofits as they struggle to deal with the financial impact…