Nonprofits, similar to their profit-oriented counterparts, are feeling the negative effects that business interruption caused by the coronavirus pandemic can have on the ability to carry out their missions. Some nonprofit agencies have been forced to temporarily close their doors in Delaware after being classified as non-essential businesses. Many nonprofits in Delaware are considered essential businesses, including those operating in healthcare, residential care, and social assistance. However, even those allowed to continue to operate are faced with varying degrees interruption from employees forced to stay home after being directly impacted by COVID-19.
On March 18, 2020 the President signed the Families First Coronavirus Act (H.R. 6201) which was intended to ease the burden stemming from the COVID-19 pandemic. The Act provides family and medical leave, along with sick leave, to workers, while providing tax credits to employers, including nonprofit organizations. These provisions are generally effective beginning on the date to be determined by the Secretary of the Treasury (but no later than April 2, 2020) through December 31, 2020.
The following article on our tax blog, A Matter of Tax – COVID-19 Tax Update: Families First Coronavirus Response Act is important information that nonprofit employers need to know.
Nonprofit organizations should be thinking about these factors now to remain ahead of the curve. However, the implementation of a new payment platform could bring with it recordkeeping and accounting issues;