Did you know that non-profit organizations are also eligible for the Employee Retention Credit (ERC)? The ERC is offered as a payroll tax credit to businesses affected by the Covid pandemic. Contrary to popular belief, this credit is not exclusive to for-profit companies; many non-profits such as churches, independent schools, charities, and human rights organizations can qualify too.
While everyone has been impacted by the pandemic in some way or another, those with businesses have arguably felt it most acutely. As such, taking advantage of ERC could help alleviate some of its financial strain.
In order for a regular business to qualify for the employee retention credit funding, they either have to meet the revenue reduction test or the otherwise affected test. The otherwise affected test is based on the following question:
Due to the government order of partial or full suspension, was your business NOT able to continue its activities in a comparable manner and did that result in a more than nominal impact on your business operations?
The majority of churches, independent schools, and non-profit organizations had to adapt in the face of the pandemic, shifting to Zoom calls and classes. Charities faced particular difficulty as they were unable to engage in their usual fundraising activities. Additionally, many have argued that the government’s handling of the situation has amounted to a breach of human rights. It is clear that numerous non-profits have been significantly impacted by this global crisis.
An example of qualifying a non-profit organization is having to create extra room to accommodate social distancing. Other considerations include travel interruptions, vendor issues, changes in job roles and functions, as well as the reduction of services. These are just some of the ways an organization can qualify for assistance.
Non-profit organizations may have different qualifications than regular businesses, but if they work with a reputable ERC Funding company, they are often able to qualify for assistance even if they were initially told otherwise.
Just like other businesses, non-profit organizations have had to grapple with financial hardship during the Covid pandemic. Fortunately, they are now included in the Employee Retention Credit (ERC) program that provides government funding for struggling companies. If you know someone who is a decision-maker at a non-profit organization or if you are one yourself, it’s time to learn more about ERC qualifications and apply for the available funds. It’s important to talk to an expert on this topic because many accountants and professionals may not be aware of all aspects of ERC. The money is there waiting – don’t miss out! The ERC has been active since 2020 with some changes along the way; so why wait any longer? Take action today and get your much-needed financial assistance!
