Non-Profits Can Qualify For ERC Funding
Did you know that non-profit organizations also qualify for the Employee Retention Credit (ERC)? The ERC credit is being offered as a payroll credit for those businesses that were affected in some way by the Covid pandemic? Many non-profit companies have been led to believe that only for-profit businesses qualify for ERC. This is not true.
Everyone was affected in some way by the pandemic, but those that have businesses were probably affected the most. With that being said, many non-profits such as churches, independent schools, charities, human rights organizations, etc. could, and probably do, qualify for ERC.
In order for a regular business to qualify for 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 the nominal impact on your business operations?
Most non-profits will also answer that question, “yes”. The majority of churches and independent schools were shut down and had to do zoom calls and classes, charities also had to adapt and work from home which did not allow for the typical fundraising they would be doing, the way the govt handled the pandemic itself pretty much falls into a human rights issue, and there are many other ways non-profit organizations were affected.
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An example is having to have extra room to allow for social distancing qualifies the non-profit organization. Also, what about travel interruptions, vendor issues, job role function changes, and reduction of services? Those are just a few ways to qualify.
Although there is at least one other qualification for non-profit organizations than there is for regular businesses, those that are working with a reputable ERC Funding company, are finding that they actually are qualifying and were given the wrong information initially if they were told otherwise.
Like other businesses, non-profit organizations also struggled to stay above water during the Covid pandemic, so why shouldn’t they also get help from government programs? They were also left out of the first round of PPP but thankfully this time they are not being left out of ERC.
If you are a non-profit organization decision-maker or know someone that is, it is time to talk to someone about the ERC funding qualifications. It is important to speak to an ERC funding expert as most accountants and other professionals are not aware of the ERC program in detail, not to mention if they have not notified you about it as of now, they are not the right person to guide you with this. The ERC funding has been available since 2020 with some tweaks along the way so don’t you think it’s time for you to qualify to receive your funding?
Of course, it is!! The money is yours and is waiting for you so what are you waiting for?
