Not For Profit

You can rely on us to see you through to this. Difficult choices are needed in difficult times rapidly. In this unrivaled time, Blue Arrow CPAs is dedicated to helping you. Our continuous Remote Client Service is extended for your convenience while our team members are working safely from home without any pay cut.

In case of any questions, please contact us, and we will respond within 24 hours.

The CARES Act

On 27 March 2020, the CARES act (the Coronavirus Aid, Relief, and Economic Security Act) was signed into law by Congress and President Trump, offering taxpayers' relief from new coronaviruses (COVID-19) as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act. It is a vital piece of law aimed at providing customers and corporations with about $2 trillion in financial assistance. Here are the options applicable for non-profit organizations:

Funds:

1. Emergency Small Business Loans (emergency SBA 7(a) loans): Eligible non-profits and small corporations have up to $ 10 million. These are special loans solely intended to finance wages, transactions, and debt. In certain conditions, they can be forgiven in full or in part.
   
   
   • General Eligibility: This is available for businesses that had paid employees on 1 March 2020.
     
   • Nonprofit Eligibility: Accessible for benevolent non-profit organizations with 500 or less employees (taking into account each individual – full-time or part-time and not FTEs).
     
   • Loan Use:Loan funds could be used for payroll and related expenditure, namely health insurance premiums, installation expenses, and debt payments.
     
   • Loan Forgiveness: The good news is that the loans will be forgiven to employers who are employed between March 1 and June 30 and primarily transform the credit into a voucher.
     
     
2. Economic Injury Disaster Loans (EIDL): Companies and non-profit organizations in all U.S. States may register for an Economic Injury Disaster Loan in reaction to a coronavirus (COVID-19) contagion. EIDL is structured to provide financial assistance to companies with coronavirus-related temporary loss of sales.
   
   Here, the credibility demands are alleviated, and the EIDL Program with an additional $10 billion is provided; hence the qualifying nonprofits are eligible to get checks up to $ 10,000.

Tax and other benefits:

1. Above-the-line deductions:Well, before the disease outbreak shot the economy, higher-income employees concentrated on charitable planning techniques that provide a double gain: they help change the environment and promise the contributors a tax break.
   
   The CARES Act allows qualifying people to take a deduction of up to $300 from their AGI in 2020 towards a qualified charitable donation. Our service provides a new allowance above-the-line for a total charitable donation of up to $300 (Universal or non-compliant allowance for all the taxpayers). Along with that, the measure further increases the current ceiling on annual contributions for individuals from 60% of adjusted gross revenue to 100%.
   
   Eligible charitable donations are charitable contributions I made in cash, (ii) otherwise withdrawn from a charitable donation, and (iii) made to those charities that are funded publicly. This above-the-line charitable deduction will not be used to make donations to a private non-operating charity or to a program supported by a trustee.
   
   Self-Funded Nonprofits and Unemployment: In this law, only self-financed nonprofits will be reimbursed for half the insurance costs to their laid off staff.
   
   Employee Retention Payroll Tax Credit: Up to $5,000 in payroll credit per employee if such provisions are complied with:
   
   At the beginning of 2020, the organization in question was a persistent concern. Revenues would also fall 50 percent from the first quarter of 2019 to the first quarter of 2020. The loan remains open to 80% of the matching quarter in 2019 until a quarter in 2020.
   
   The reduction in revenue is assessed for tax-exempt entities, as contrasted with all its activities. If an employer receives SBA 7(a) emergency credit, they will not be eligible for the tax credits.
   
   
2. Other Significant Provisions Includes direct payments to adults of up to $1,200 or less, and for children, it is $500 ($3,400 for a family of four) to be sent out in weeks—payments phase-out based on income ranging from $75,000 to $99,000.
   
   Expanded Unemployment Insurance: Payments in addition to federal unemployment programs are boosted by $600 a week for four months.
   
   Amendments to the New Paid Leave Mandates: Reduces to sums provided by the reimbursable payroll tax credit the employees have to compensate for the paid sick and family leave under *.
   
   The federal government is currently finalizing the details and procedures to implement and implement the various programs and reliefs. As per the duty, Blue Arrow CPAs is tracking the guidelines closely and promptly providing the customers with reliable details.
   
   
3. What we can do: Now is the time for all the documents to be organized to enforce them as soon as it becomes accessible. As standard procurement processes would have little time, specialist expertise must be available on your side.