Five Ways Not-for-Profits Can Capture the Benefits of the CARES Act by Amy O’Loughlin, CPA Not-for-profit organizations have been hard hit by the COVID-19 pandemic. Shelter-inplace orders have dwindled physical participation in religious and cultural activities, while forcing charitable organizations to either suspend or heavily curtail operations. Financial pressures including declines in contributions, investments and endowment balances will need to be addressed by organizational leadership so that your operations can be managed through these uncertain times. Recent pandemic-related stimulus legislation may provide some much needed resources — and stability — during this time. The following five benefits from the Coronavirus Aid, Relief and Economic Security (CARES) Act are particularly beneficial for not-for-profit organizations. Specialized Financing Vehicles, and Forgivable Loans The CARES Act enhanced Small Business Administration (SBA) loans and created the Paycheck Protection Program (PPP), which offers a forgivable loan that organizations with 500 or fewer employees can use to help with payroll costs. The first round of funding has been fully distributed. The President signed legislation on April 24 providing additional coronavirus relief funding to the Paycheck Protection Program. It is meant to bridge the gap between the CARES Act funding and the next round of coronavirus legislation.
JULY/AUGUST 2020 AZ CPA
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