news & announcements · 2020-04-03 · charity to ensure the charity can accept and document...

Issue97March2020

ABOUT|TRAININGS|LATESTNEWS|RESOURCES|CONTACTUS

News&Announcements

Inthisissue:

·CommunitySupportOrganizationsIssueResponsetoCOVID-19·Federal&StateGovernmentActionontheIssue·ResourcestoHelp·Webinars·InstructionsforCharitableContributions(IRAs,DAFS)

CommunitySupportOrganizations’ResponsetoCOVID-19

AcollectivemessagefromCooperFoundation,ProsperWaco,TheBernard&AudreRapoportFoundation,WacoFoundation,andUnitedWay:

Asorganizationsthatsupportlocalnonprofits,wearecommittedtotheGreaterWacocommunityandtheindividualsandfamilieswholivehere.WeknowournonprofitsareworkingovertimetomeetthemanyneedsassociatedwithCOVID-19,andwethankyouforyourservice.

Weareworkinginpartnershipwithandsupportofourcommunityleaderstounderstandtheneeds,resourcesandbestwaystorespond,andwillkeepnonprofitsupdatedinatimelymanner.We

arepartneringwithActLocallyWacotoshareimportantinformationasitbecomesavailable.

Weencourageallnonprofitpartnersto

checkwww.actlocallywaco.org/cvresources/forupdatesandcommunityinformation.

WeareWaco-McLennanCounty,andwewillgetthroughthistogether.

#wacosupportingwaco

Federal&StateGovernmentResponses

SmallBusinessDisasterLoans

TheU.S.SmallBusinessAdministration(SBA)hasgrantedaccesstoitsEconomicInjuryDisasterLoan(EIDL),committingtoprovidelong-term,low-interestloanstoqualifyingbusinesses(includingeligible501(C)(3)nonprofits)acrossthestateasaresultoftheCoronavirus(COVID-19).Theloansareonafirstcome,firstservedbasis,so501(C)(3)sexperiencingalossinrevenueshouldnotdelayinapplyingforsupport.TolearnmoreabouttheEconomicInjuryDisasterLoanprogram,clickhere.Clickhere,foraPDFofSBAloandetailswehavebeenabletogathertodate.Toviewasampleapplication,clickhere.Toapply,clickhere.

SBADisasterLoanInformationalVideobyMCCSmallBusinessDevelopmentCenter(SBDC)DirectorTimHoltkamp:Clickhere.

ThelocalSBDCisnaturallyreceivingalotofinquiriesrightnowbuttheymaybeabletohelpyouprocessyourapplication.Here’stheDirector’scontactinformation:TimHoltkampatSBDCWork:254.299.8157Email:tholtkamp@mclennan.eduAddress:4601N.19thSt.Waco,TX76706

SBADisasterhotline:1.800.659.2955

TaxDayExtendedtoJuly15–Butnotformostnonprofits:TheNationalCouncilonNonprofitsreportedthat"thePresidentissuedanExecutiveOrderonMarch13instructingtheTreasurySecretary'toproviderelieffromtaxdeadlinestoAmericanswhohavebeenadverselyaffectedbytheCOVID-19emergency.'TreasurythenissuedNotice2020-18toautomaticallypostponethetaxfilingdeadlinefromApril15,2020,untilJuly15,2020.

"Thereisamajorproblem.TheNoticeexpresslylimitsthereliefasbeing“availablesolelywithrespecttoFederalincometaxpayments(includingpaymentsoftaxonself-employmentincome)andFederalincometaxreturnsdueonApril15,2020.NonprofitsfiletheirannualtaxesonForm990,whichtheIRSwebsitenotes'isdueonthe15thdayofthe5thmonthfollowingtheendoftheorganization'staxableyear.Fororganizationsonacalendaryear,theForm990isdueonMay15th.'Therefore,withoutanotherfix,onlynonprofitswithacalendaryearthatendsonNovember30willenjoythetaxfilingreliefforeveryothertaxpayingentity."

OMBRelief:FederalGrantsFlexibility:TheNationalCouncilonNonprofitsfurtherreportedthat"thefederalOfficeofManagementandBudgethasissuedinstructionsallowingfederalagenciestograntexceptionsundertheOMBUniformGuidancetoapplytovirtuallyallfederalgrantsandthenonprofitsthatperformundertherules.NewOMBMemoM-20-17authorizesfederalagenciestoremoveadministrativeimpedimentsandencouragesflexibilityinprocessingrenewalsofgrants,allowslooserreimbursementandpurchasingstandards,andmore.Thedocumentprovidesadditionalreliefforextensionsoffederalreportingdeadlines,indirectcostratenegotiations,allowabilityoftravelandothercancellationcosts,SingleAuditscurrentlydue,andmore.Whilethereisnoguaranteethatallfederalagencieswillauthorizesuchflexibility,theMemoisgroundsfornonprofitstoseekcontinuedpaymentsforsalariesandfacilitiesandadministrativecostseveniftheyarenotcurrentlyoperational."

ResourcestoHelpYouRespondandPlan,

DuringCOVID-19:

WacoFoundationknowsthatmanynonprofitsinourcommunityareexperiencingtheeffectsofthenovelCOVID-19andhavequestionsormightneedresources,ourgoalwiththisnewsletteristoprovideyousomeresourcestokeepyouinformedandupdated.

HR/OperationsInterimGuidanceforBusinessesandEmployerstoPlanandRespond

toCoronavirusDisease2019(COVID-19)CoronavirusImpactingYourNonprofit?Here’sWhattoDoHowNonprofitsandBoardMembersCanRespondtoCOVID-19FamiliesFirstCoronavirusResponseAct

TXWorkforceCommission–SharedWorkProgram

TechnologyRunningEffectiveVirtualNonprofitMeetings:9BestPracticesfor

FacilitatingEngagementGoingRemoteOvernight:PreparingfortheCoronavirusTechnology-enablingyournonprofittosucceedinthefaceofCOVID-

19GoogleHangoutsPremiumisfreethroughJuly1.MicrosoftTeamsisavailableforfreeforsixmonths.GoToMeetingisalsoofferingtheirremoteworktoolsfreeforthree

months.NonprofitsfocusedonfightingCOVID-19canaccessthreemonthsof

freeDropboxPremium.

Fundraising/FundDevelopmentFundraisinginaCrisisFrequentlyupdatingcompilationofCOVID-19FundraisingAdvice

GeneralCOVID-19NewsCentersforDiseaseControlandPreventionTheCityofWaco:COVID-19UpdateCV2020:TheGreatWacoHunkerDown-ActLocallyWacoNationalCouncilofNonprofits:NonprofitsandCoronavirus,COVID-19

WEBINARS

PrepareYourNonprofitforSmoothSailingThroughCOVID-19PresentedbyTechImpact&501Commons

Attemptstoslowthespreadofthecoronavirusmightinvolveclosingnonprofitofficesandprogramsites.Butthatdoesn’thavetoshutdownyouroperationsoryourservices.JoinusforapresentationandQ&Awithexpertsabouthowtorapidlygettherighttechnologyinplaceandminimizedisruptionstoyourorganization.Wewillcover:

•Optionsforcloudproductivitytoolssuchasemailandfilesharing•Techpoliciesforpeopleworkingremotelyandusingpersonaldevices•Waystostartdeliveringprogramsandservicesremotely,inunderamonth•Afewtipsforsanitizingyourtechdevices(alwaysagoodidea)

Clickheretolearnmoreandtoregister.

FundraisingDuringEconomicSlowDownshostedby

IndianaUniversityLillyFamilySchoolofPhilanthropy

Dr.PatrickRooney,executiveassociatedean,IndianaUniversityLillyFamilySchoolofPhilanthropyBillStanczykiewicz,director,TheFundRaisingSchoolDate:Friday,March27,2020

HowtoEndureasaFundraiserDuringDifficultTimeshosted

byIndianaUniversityLillyFamilySchoolofPhilanthropy

Dr.TimSeiler,HenryRossoFellowforPhilanthropyFundraising,TheFundRaisingSchool

Time:12:00pm-1:00pm(EDT)

PatrickRooneyisanationallyandinternationallyrespectedexpertonhoweconomicdownturns–includingeconomicslowdownscausedbynaturaldisasters–affectfundraising.Reviewthelessonsoncharitablegivingfromtheaftermathof9/11aswellasHurricaneKatrinaandsimilarcatastrophicevents,andhowthoselessonsinformtoday’sfundraising…andhowtheydon’t!LearnwhatyouCANdointoday’snewfundraisingenvironment.

Clickheretolearnmoreandtoregister.

CathyBrown,associatedirector,TheFundRaisingSchoolDate:Friday,April3,2020Time:12:00pm-1:00pm(EDT)

TimSeiler’sprofessionalcareerspansfivedecades,andduringthattimehehasobservedthehighsandthelowsofcharitablegivingandfundraising.Tim’swisdomandperspectivecanprovidecalmandreassuranceduringtheseturbulenttimes.Clickheretolearnmoreandtoregister.

CharitableContributionsThroughIRAQCD’sand/orDonorAdvisedFunds

Withtheonsetofmuchhigherstandarddeductionsfortheindividualincometaxpayers,somequalifiedindividualsarerecognizingincometaxbenefitsbymakingcharitablecontributionsthroughQualifiedCharitableDistributions(QCD)fromIndividualRetirementAccountsand/orfromDonorAdvisedFunds(DAF).Whilethesegiftsprovidebenefitstothedonorsandcharitablerecipients,therearesomeimportantreportingrequirementsnonprofitsmustrecognize.1.ProperAcknowledgmentLanguageNonprofitcharitableorganizationsreceivingthesetypesofgiftsarenotalwaysusingproperacknowledgmentlanguageintheir‘thankyou’communications.Manyorganizationsareeitherusingthesamelanguagetheyuseforincometaxdeductiblegiftsand/orareincludingtheQCDorDAFgiftsinindividualyearlygifttotals.BecausedollarsplacedintostandardIRAsandDAFsarepotentiallydeductiblewhenplacedintothosevehicles,thelatertransferfromtheIRAorDAFtothecharityisnotanincometaxdeductibledonationforthedonor.Donorsmaynotbeawareofthedistinctionwhenpresentingtheirincometaxinformationtoincometaxpreparersandtherefore,taxpreparersmaybedeductingthesegiftsinerror.NonprofitentitiesmustmakeeveryattempttodistinguishQCDandDAFgiftsfromthedonor’sotherwiseincometaxdeductiblegifts.

2.CommunicationwithDonorSomenonprofitsarereportingthatgiftsfromdonorsthroughQCDandDAFdistributionsdonotcarrythedonor’snameand/ortheusedesignationofthedistribution.Donorsneedtobeapprisedthroughgeneralcommunicationsthattheyshouldnotifythecharityinadvanceofthedonor’sintenttohaveaQCDorDAFdistributionmadetothecharitytoensurethecharitycanacceptanddocumentthedistributionproperly.DonorsshouldalsoberemindedtoeffectivelycommunicatewiththeirtaxpreparerregardinganyQCDorDAFtaxyeargiftsmade.

3.TaxFormsIRA1099RFormsdonotyetdistinguishbetweenregularrequired

minimumdistributions(RMDs)andQCDssothatinformationmustcomefromnonprofitsandthedonors.

4.IRA/DAFAccountsSomenonprofitsareexperiencingdifficultywiththemanagersoftheIRAorDAFwhentheyaretoldthecharitymustsetupanaccountwiththeIRAorDAFinvestmentorganizationinordertoreceivethedistribution.Thisshouldnotbenecessary.IRAorDAFmanagersshouldbeabletodistributefundsdirectlytothenonprofitperthedirectionsofthedonor.

ContributedbyHarryHarelik,CPA,CFRE

TodownloadthePDF,clickhere.

Staysafeandhealthy,

NicoleWynterWACOFOUNDATION-CAPACITYBUILDINGPROGRAM

Receivedacopyofthisnewsletterfromafriend?StayconnectedbysubscribingtoMcLennanNonprofits.org.