COVID-19 and the CARES Act for Nonprofits: What You Need to Know
Nonprofits Making Headlines
This week in nonprofits news, The World Health Organization continues to respond to COVID-19 on a global scale, coordinating efforts and information. Doctors Without Borders is sending medical care to the countries that need it the most. Follow the Money, a nonprofit based in Nigeria is managing government donations amounting around $27 million for the fight against COVID-19 in Africa.
With kids finishing up their semester online, No Kid Hungry is one of the organizations working to provide free, healthy meals for children who relied on school lunch programs for food. On May 21, social media floods with selfies and emojis for Red Nose Day, a nonprofit campaign that raises awareness and works to end child poverty.
Locally, communities are coming together to support nonprofits that care for them. Nonprofits efforts in every sector are a transfusion of hope, providing relief across the world.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act
How can nonprofits keep their numbers up while we pull the curve down?
The CARES Act is a new law that addresses economic hardship caused by COVID-19 in the United States. The good news is, it provides funding for nonprofits.
Paycheck Protection Program (PPP) offers emergency loans of up to $10 million to eligible nonprofits. It also provides loan forgiveness in qualifying circumstances. Organizations can use these funds toward payroll, rent, utilities, and various other debts.
Who is eligible?
This program applies to charitable nonprofits with 500 or fewer employees.
Charitable Giving Incentives
The CARES Act allows people to deduct up to $300 from their taxable income for annual charitable contributions. With the world in crisis and new incentives for donors, now is the time to give.
For more information about the CARES Act, visit the U.S. Department of the Treasury. https://home.treasury.gov/policy-issues/cares
When it comes to reporting these new loans and receipts to the IRS, Express Tax Exempt has it covered. Find out everything you need to know about filing Form 990 to remain tax-exempt, from deadlines to avoiding penalties.
Working from Home: Fundraisers and Volunteers
With boardrooms giving way to Zoom meetings and states navigating different stages of lockdown, everyone has been forced to adapt. Many fundraising events have been canceled for public safety. Organizations are utilizing online platforms to request charitable donations. Companies have joined in, offering to match donations to generate more revenue for different causes.
Tents and tabling are paused for right now, but there are numerous online opportunities for nonprofits still searching for volunteers. Stuck at home, people are looking for virtual ways to make a difference in the world.
As nonprofits digitize their donations and navigate the CARES Act, ExpressTaxExempt is here to assist. During challenging times, take the IRS off your list of worries. ExpressTaxExempt smooths out the paperwork with easy-to-use software. Filing becomes a breeze, so nonprofits can get back to being heroes.