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Jul 27, 2021 | Insights

3 New Financial Relief Opportunities for Nonprofits

Over the past year, many nonprofits suffered financially and had to make significant operational changes due to COVID-19. Federal relief came in several forms at the time and in 2021 more help is available through the newly passed American Rescue Plan Act of 2021.

On June 30, 2021, the Institute for Nonprofit Practice in partnership with TSNE presented “Nonprofit Relief: Opportunities in the American Rescue Plan,” a webinar with attorney Chitra Aiyar that took an in-depth look at three less-publicized and substantive funding opportunities for nonprofit organizations.

This recording explores three types of newly available financial relief:

Shared Work

Also known as workshare or short-time compensation, shared work is a reduction of staff hours as an alternative to layoffs. Staff whose hours are reduced in this manner are eligible to have a portion of their original pay covered by unemployment insurance, depending on local state regulations. Nonprofits can use this opportunity to avoid laying off employees by temporarily reducing payroll costs.

Paid Leave Tax Credit

An overview of the Paid Leave Tax Credit is also covered, specifying types of leave available to employees and how nonprofit employers can be reimbursed for time off provided to employees under this program. 

Employee Retention Tax Credit

The session includes a deep dive into the Employee Retention Tax Credit and how nonprofits can take advantage of this refundable payroll tax credit to offset their payroll costs.

More information about Chitra Aiyar can be found at https://www.nonprofitcovidrelief.net/. This session was part of the Institute for Nonprofit Practice’s Leadership Learning Series, a virtual series of workshops led by experts and national thought leaders to educate and connect social sector leaders as they work to rebuild, reimagine, and renew in the wake of the pandemic and the nation’s racial awakening. View past Leadership Learning Series sessions here.

 

Watch the recording and download the presentation slides