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Should Your Established Nonprofit Sponsor A Smaller Project?
During the initial COVID-19 outbreak, a small community group decided to organize grocery deliveries to low-income seniors. Time was of the essence and participants in the fledgling project didn’t have time to file for 501(c)(3) status or build fiscal infrastructure. Fortunately an established nonprofit agreed to act as a fiscal sponsor — providing a legal and financial umbrella to the […]
Budgeting Ideas For Uncertain Times
Budgeting, like many other things, was generally easier before COVID-19. Even though the pandemic isn’t over and much remains uncertain, nonprofits need to plan their financial needs and project financial resources. But you might be able to make the budgeting process more effective by trying a new approach — for example, a rolling budget — or by reforecasting an existing […]
Bill Brings Early Termination Of The Employee Retention Credit
On November 15, 2021, President Joe Biden signed the Infrastructure Investment and Jobs Act (H.R. 3684) into law. This legislation contains a provision that terminates the employee retention credit (ERC) early, retroactively to October 1, 2021. The ERC was originally set to expire on December 31, 2021. The American Rescue Plan Act (ARPA) added a new type of employer that […]
There’s Still Time To Claim The Employee Retention Credit
UPDATE: The U.S. House of Representatives passed the Infrastructure Investment and Jobs Act – H.R. 3684 on November 5, 2021. The current version of the bill contains a provision that would terminate the COVID-19 pandemic Employee Retention Credit (ERC) as of the end of the third quarter of 2021 for most employers, except for a recovery startup business. For a […]
New IRS Guidance On The Employee Retention Credit
In March 2020, the Employee Retention Credit (ERC) was enacted as part of the CARES Act to benefit companies impacted by government orders due to COVID-19 or that experienced a significant decline in gross receipts compared to 2019. It was also designed to reward those companies who kept employees on the payroll. For 2020 and the first two quarters of […]
Follow The Cutoff Rules For Revenue And Expenses
Timing counts in financial reporting. Under the accrual method of accounting, the end of the accounting period serves as a strict “cutoff” for recognizing revenue and expenses. However, during the COVID-19 pandemic, managers may be tempted to show earnings or reduce losses. As a result, they may extend revenue cutoffs beyond the end of the period or delay reporting expenses […]