DISASTER ASSISTANCE AVAILABLE
Certain Montana Nonprofits Qualify

Low-interest federal disaster loans are now available to certain nonprofits in Carbon, Park, and Stillwater counties through the Small Business Administration (SBA). The SBA may lend qualifying nonprofits up to $2 million to repair or replace damaged or destroyed real estate, machinery and equipment, inventory and other business assets. Additional SBA funds may be used to help with the cost of improvements to protect, prevent, or minimize the same type of disaster damage from occurring in the future. For these loans, qualifying nonprofits must provide an "essential governmental service". Nonprofits should contact Bureau Chief Jake Ganieany of the Montana Department of Military Affairs by calling 406-417-9234 or emailing jake.ganieany@mt.gov to obtain more information about whether or not they qualify. 

The SBA is also offering impacted nonprofits Economic Injury Disaster Loans (EIDLs) to help with meeting working capital needs caused by the disaster. EIDLs may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact. Economic injury assistance is available regardless of whether the nonprofit suffered any property damage.

The interest rate is 1.875 percent with terms up to 30 years. The deadline to apply for property damage is Aug. 15, 2022. The deadline to apply for economic injury is March 16, 2023.

Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloanassistance.sba.gov/. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance.

Attention Nonprofit Employers: Did You Forget to Claim Refundable Tax Credits from the IRS?
 

Although Congress canceled the Employee Retention Tax Credit (ERTC), effective the end of September 2021, there is still time for eligible businesses, including nonprofits, to claim this refundable tax credit that can offset employment taxes and generate a refund.  

Why does this still matter in 2022?
If your nonprofit is eligible for this significant tax credit for parts of 2020 and 2021 and hasn’t claimed it yet, you can still file an amended return to claim the credit.

How can my nonprofit claim a tax credit when we don’t pay income taxes?
The ERTC was intentionally written to apply to the taxes charitable organizations do pay – payroll taxes; and it was made refundable, meaning employers get a check back from the Treasury for the amount of the credit that exceeds the payroll taxes you owe.

Unclaimed tax credits are available and your nonprofit may very well qualify.
Many nonprofit employers have been struggling to stay afloat during the pandemic. And many remain unaware of their ability to qualify for the ERTC because eligibility and recoverable amounts have changed significantly over time. The program has been impacted by four major congressional recovery packages and voluminous pages of regulations and guidelines issued by the Treasury Department and the Internal Revenue Service (IRS) to address qualification, computation, and filing requirements. 

Despite the shifting landscape, it remains clear that large amounts of unclaimed tax credits are available, and nonprofits would be well served to examine this time-sensitive opportunity with their professional advisors.  

Examples:
A small human services provider based in Washington, D.C. utilized the ERTC to keep 11 full-time employees and several part-time workers on the job throughout the pandemic. The nonprofit was able to claim ERTC relief of $85,000 for 2020 and about $115,000 for the first three quarters of 2021.

A nonprofit serving children in the Pacific Northwest was able to claim $230,000 under the ERTC, which actually made it possible for the organization to add four staff positions to address increased demand for their services.

A faith-based nonprofit community center in Pennsylvania, received $100,000 from ERTC in 2020 and more than $250,000 in 2021.

Thank you to the 183 MNA member organizations that responded to our recent snapshot survey. We shared the results with Montana’s congressional delegation last week in Washington D.C. in an effort to advocate for our sector. We received nearly 1,000 thoughtful and informative comments. Here is a high-level analysis for your own knowledge and advocacy efforts. Thanks again, MNA members! We appreciate you.

Community members, nonprofits, and funders are joining forces to support Montana flood recovery efforts. Here are just a few ways to contribute to the cause but we know nonprofits in each impacted community and throughout the state are stepping up to serve. And, we appreciate you all so very much. THANK YOU. 

The 2022 Montana Nonprofit Compensation Report is available. 149 Montana organizations participated in this year's survey resulting in data on hundreds of nonprofit positions in the state.

MNA members may request a 50% discount code by emailing mna@mtnonprofit.org, which will allow you to purchase your copy for $75 rather than the full price of $150. Members, please be sure to get that code to obtain the report for half-off.
 
Non-members may purchase a copy directly from Association Trends. Better yet, join MNA and get your 50% off discount code.