covid-19 resources for nonprofits€¦ · welcome to the covid-19 resources for nonprofits webinar....

COVID-19 Resources for Nonprofits

Welcome to the COVID-19 Resources for Nonprofits webinar.

The webinar will begin at 10 a.m.

Microphones and instant messaging have been disabled for this meeting.

At the conclusion of the presentation,

instant messaging will be enabled for the Q&A session.

MYLA CALHOUN

PRESIDENT

ALABAMA POWER FOUNDATION

JONATHAN MURPHY

PARTNER

FORTIF LAW

KIM RICHARDSON

PRESIDENT

KIMBERLY RICHARDSON CONSULTING

OVERVIEW

Kim Richardson, Kimberly Richardson Consulting

1. CARES Act: Loans

A. Paycheck Protection Program (PPP)

B. Economic Injury Disaster Loan (EIDL)

2. Other Sources of Funding (grants, loans, etc.)

3. OMB Memo

4. Grant Recommendations

Jonathan Murphy, Fortif Law Partners

1. CARES Act:

A. Main Street Loan Program

B. Tax Solutions

i. Employee Retention Tax Credit

ii. Payroll Tax Deferral

2. FFCRA: Expanded Paid Leave & FMLA

3. FFCRA: Expanded Unemployment

DISCLAIMER

The information provided in this presentation does not, and is not intendedto, constitute legal, tax, or financial advice; instead, all information, content,and materials available in this presentation are for general informationalpurposes only. Information in this presentation may not constitute the mostup-to-date legal or other information. Viewers of this presentation shouldcontact their legal or financial representatives to obtain advice with respectto any particular matter. All liability with respect to actions taken or nottaken based on the contents of this presentation are hereby expresslydisclaimed. The content on this posting is provided "as is;" norepresentations are made that the content is without error.

CARES ACT PROVISIONS

• Paycheck Protection Program (PPP)

– 501(c)(3) and (c)(19) Nonprofit organizations w/500 or fewer employees qualify (sizing guidelines apply)

– Applications submitted to your local lenders (existing banking relationship is being required)

– Can apply for support at 2.5 times average monthly payroll in 2019 (payroll, benefits, rent/mortgage, debt)

– Available through June 30th (out of funding as of 4/16)

– Forgivable if employment maintained for 8 wks. after loan origination or employees rehired by 6/30

INFORMATION REQUESTED

• Tax ID #

• Average Monthly Payroll for 2019

• Total # of employees

• Amount requested (2.5 times avg. monthly payroll)

• Uses of the loan qualifying for forgiveness: payroll, mortgage interest, lease,

and utilities.

• Various certifications

• Sample Application - https://www.sba.gov/sites/default/files/2020-04/PPP-

Borrower-Application-Form-Fillable.pdf

https://www.sba.gov/sites/default/files/2020-04/PPP-Borrower-Application-Form-Fillable.pdf

• Economic Injury Disaster Loan (EIDL)

– Loan program for 501(c),(d),(e) organizations w/500 or fewer

employees

– EIDL - Up to $2 million; not forgivable

– Emergency Advance - Up to $10k available as a grant, regardless of loan

eligibility (based on # of employees)

– Apply via www.sba.gov

– Available through 12/31 (out of funding as of 4/16)

CARES ACT PROVISIONS

http://www.sba.gov/

• Gross Revenue for 2019

• Cost of Goods Sold

• Rental Properties – Lost rent

• Non-profit cost of operation for 2019

• Compensation from other sources

• Number of employees

• Owner agent information & certifications

• Paid preparer information

INFORMATION REQUESTED

OTHER RESOURCES

• Significant funding has also been allocated to various Federal

Agencies to be awarded as block grants and competitive

grants

• Check the State of Alabama website for funding

opportunities

• Research initiatives at local foundations

– AL Power, CFGB, Protective, United Way, etc.

OMB MEMO M-20-17

• Issued 3/19/20

• Addresses short term administrative relief for recipients &

applicants of Federal Financial Assistance impacted by

COVID-19 due to loss of operations

• Provides agencies with additional flexibilities for grants

assisting the response to COVID-19

EXAMPLES

• Can relax requirements for active registration at

www.sam.gov

• Flexibility with application deadlines

• Ability to publish emergency NOFOs (no less than 30 days)

• No-cost extensions on expiring awards

• Allowability of costs not normally charged to awards

http://www.sam.gov/

• Extension of:

– Closeout

– Single audit submissions

– Currently approved indirect cost rates

– Financial, performance and other reporting requirements

• https://www.whitehouse.gov/wp-content/uploads/2020/03/M-20-17.pdf

EXAMPLES

https://www.whitehouse.gov/wp-content/uploads/2020/03/M-20-17.pdf

RECOMMENDATIONS

• Secure your DUNS # and www.SAM.gov registration

• Register on www.grants.gov

• Monitor for grant opportunities daily

• Communicate with existing funders (can awarded funds be

converted for other uses?)

• Explore opportunities for collaboration/creativity

• First Come, First Serve - stay ready to respond quickly

http://www.sam.gov/

http://www.grants.gov/

MAIN STREET LOAN PROGRAM

• Loan Amounts:– New Loans: Min. $1 Million-$25 Million

– Expanded Loans: Max. $150 Million

• Terms:– 4-year loans at variable rates of 2.5-4 %

– Deferral of principle and interest for one year; no loan forgiveness

• Eligibility:– term sheet suggests that anyone with 1-10,000 employees & less than $2.5 Billion in 2019

annual revenues (originally required min. of 500 employees);

– must have be created or organized in U.S. and have majority of employees based in U.S;

– must have been in good financial standing prior to crisis; and

– must have minimum EBITDA of $250,000 (correlates to min/max loan size determination[EBITDA X 4]).

https://www.federalreserve.gov/monetarypolicy/mainstreetlending.htm

TAX SOLUTIONS: EMPLOYEE RETENTION TAX

CREDIT

https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act

• Eligibility

– includes any employer (regardless of size) that carries on a trade or business (including tax-

exempt organizations) during calendar year 2020, that either:

• Suspends operations fully or partially during any calendar quarter in 2020 due to

COVID-19; or

• Experiences a significant decline in gross receipts during a calendar quarter.

– Cannot use Employee Retention Tax Credit & PPP loan

• Benefit:

– The credit equals 50 percent of the qualified wages (including qualified health plan

expenses) that an Eligible Employer pays in a calendar quarter from March 12, 2020-

January 1, 2021.

• Eligibility:

– All employers are eligible BUT no deferral after notice of forgiveness of PPP loan (if any).

• Benefit:

– Allows employers to defer the deposit and payment of employer's portion of Social

Security taxes and certain railroad retirement taxes incurred between March 27, 2020 and

December 31, 2020.

– The deferred taxes are due and considered timely paid if 50% of the amount deferred is

paid by December 31, 2021 and the remaining 50% deferred amount is paid by December

31, 2022.

– Federal withholding taxes, Medicare taxes and withholding, and employee social security

withholding are not eligible for the deferral.

https://www.irs.gov/newsroom/deferral-of-employment-tax-deposits-and-payments-through-december-31-2020

TAX SOLUTIONS: PAYROLL TAX DEFERRAL

• Who is covered?

– Employers:

• Public sector: All.

• Private sector: Generally all with 500 or fewer employees.

– Employees:

• Generally all employees of qualifying employers.

• For the extra 10 weeks for school/daycare closures, only employees who have been

employed 30 days.

• Exceptions:

– Employers <50: Can claim an exemption from leave for reason (5) only.

– Employers <25: Restoration right may or may not apply, depending on the circumstances.

https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave#_ftnref3

https://www.dol.gov/agencies/whd/pandemic/ffcra-questions

EXPANDED PAID LEAVE & FMLA

• What are the grounds for paid leave?

1. If the employee is subject to a Federal, State, or local quarantine or isolation order related

to COVID–19;

2. If the employee has been advised by a health care provider to self-quarantine due to

concerns related to COVID–19;

3. If the employee is experiencing symptoms of COVID–19 and seeking a medical diagnosis;

4. If the employee is caring for another person who fits into categories (1) or (2);

5. If the employee is caring for a child whose school or daycare is closed due to COVID-19;

or

6. Similar conditions to be defined by the Secretary of HHS.

• What are the grounds for expanded FMLA?

– Reason 5




• How much time and pay do employees get in paid leave?

– Reasons (1), (2), and (3):

• 80 hours/2 weeks

• Entire “regular rate,” capped at $511 per day up to $5,110 total

– Reasons (4), (5), and (6):

• 80 hours/2 weeks (plus potentially 10 weeks more for childcare reason (5))

• 2/3 of “regular rate,” capped at $200 per day up to $2,000 (up to $10,000 for childcare

Reason 5)




• How much time and pay do employees get in expanded FMLA?

– For Reason 5

• 2 weeks of paid leave at 2/3 their regular rate of pay, up to $200/day (up to $2,000) and

• an additional 10 weeks of Reason 5 FMLA paid leave at 2/3 their regular rate of pay (up

to $10,000 total).

• Must subtract previous FMLA time taken in 2020 from the 10 weeks.

• What documentation may/must employers require?

– IRS guidelines on “substantiation”

– Don’t require anything beyond what is required for substantiation of the payroll tax credit.

– For Reason 5, use FMLA forms WH-380, WH-381, and WH-382, with appropriate

modifications.




EXPANDED PAID LEAVE & FMLA• Who pays for this?

– The government, via refundable credits against your payroll taxes.

• Credit of 100% of qualified wages up to $511 per day up to $5,110 per employee or

$200 per day up to $10,000 per employee (depending on reason for leave);

• Credit is refundable to the extent it exceeds employer tax liability;

• Credits are also provided for employer's qualified health plan expenses allocated to

qualified sick leave wages; and

• Credit is available to self-employed individuals. Wages paid under these provisions are

not subject to employer side Social Security tax.

– Payroll providers can help you claim your refundable payroll tax credits.

– Employers retain an amount of the payroll taxes equal to amount of qualifying paid leave

and Reason 5 FMLA paid to employees rather than depositing with IRS.



• Eligibility:

– Extends unemployment benefits to persons who are unable to work or are working

reduced hours as a result of the coronavirus.

– Extends benefits to people who are independent contractors, gig workers, and self-

employed individuals; DoL guidance requires that such workers have been “forced to

suspend operations.”

• Benefit:

– Entitled to the benefit amount allowed in your state (up to $275/week in AL) PLUS a

$600/week increase in unemployment benefits for all workers claiming them, as long as the

worker qualifies for $1 of unemployment at the state level.

– Provides 13 additional weeks of federal benefits to employees meeting specific eligibility

criteria (Alabama appears to allow 14 weeks generally and up to 20 weeks under certain

circumstances).

EXPANDED UNEMPLOYMENT

COMPENSATION

https://www.dol.gov/newsroom/releases/eta/eta20200312-0

ALEX FLACHSBART

FOUNDER & CEO

OPPORTUNITY ALABAMA

SHANNON AMMONS

CEO

ALABAMA ASSOCIATION OF NONPROFITS

HALLIE BRADLEY

COMMUNITY INITIATIVES MANAGER


BRANDON GLOVER

STRATEGIC INITIATIVES MANAGER


QUESTIONS

THANK

YOU

covid-19 resources for nonprofits€¦ · welcome to the covid-19 resources for nonprofits webinar....

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