COVID-19: Finances, Fundraising, and Training Resources for Nonprofits

Available Funding Updated July 2, 2020

Salt Lake County
The Small Business Impact Grant (SBIG) is a COVID-19 relief program for small businesses in Salt Lake County funded with $40 million. Grants will be awarded through one-time payments up to $35,000 to eligible businesses that apply for funding. Learn more and apply.

Ogden
Ogden City launched the Ogden CARES Business Grant Program, applications will be accepted on a rolling basis and will be reviewed monthly until funds are exhausted. Applicants must have an Ogden City business license to be eligible for a grant. Learn more and apply.

Weber County
If you are a business that has experienced loss of revenue due to public health orders in response to COVID-19, you may be eligible to apply for the Weber County CARES Grant to receive between $2,000 and $35,000 in relief funds. Learn more and apply.

Davis County
The Davis CARES Program will use CARES Act funding, received by the County and its partnering cities, to provide grants of a minimum of $5,000 and up to $30,000, dependent on number of employees at applicant business. Learn more and apply.

Answers to Your Paycheck Protection Program (PPP) Questions

Amendments Were Signed into Law on Friday, June 5, 2020

Since being established as part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act) in March 2020, the Paycheck Protection Program (PPP) has been the subject of additional stimulus bills, legal guidance and interim final rules. In the latest development, Congress passed the Paycheck Protection Program Flexibility Act of 2020, which is a bill that provides borrowers with greater flexibility in spending PPP funds without compromising forgiveness eligibility. 

What is included in the bill?

The bill, which passed with a bipartisan vote, makes the following amendments to the PPP to provide relief to borrowers: 

  • Loan repayment terms—The bill extends the minimum loan term for unforgiven PPP loans from two years to five years.
  • Payroll costs vs. nonpayroll costs— For forgiveness eligibility, the bill reduces the portion of PPP funds that must be spent on payroll costs from 75% to 60%, and raises the nonpayroll cost limitation from 25% to 40%. 
  • Covered period extension—The bill extends the covered period during which borrowers must spend the PPP funds to be eligible for forgiveness from eight weeks to 24 weeks from the date of origination of the loan. 
  • Payroll tax deferment—The bill permits borrowers to defer payroll taxes without being penalized while still remaining eligible for loan forgiveness.
  • Extension of rehiring safe harbor—The bill extends the rehiring safe harbor by six months to provide borrowers with additional time to restore payroll levels or rehire employees without facing a reduction in the amount of forgiveness for which they are eligible. The original date was June 30, 2020, and the new date is Dec. 31, 2020. 

In addition to the provisions above, the bill provides loan forgiveness eligibility exemptions for borrowers that are not able to rehire an employee or a replacement. There are also exemptions for loan forgiveness eligibility for borrowers that are not able to return to the same level of business due to complying with COVID-19-related orders or circumstances.

What’s next?

Borrowers should review the bill carefully and speak to their lender should they have any questions. In addition, borrowers should direct any questions regarding their PPP loan to their lender. 

Are you looking for an innovative and engaging fundraising project?

Wander Project, in collaboration with Vacation Races, Virtual Running Club and the Public Lands Alliance, launched their 1st ever virtual race and community fundraiser just over a month ago. Typically for races, Wander Project raises funds for the communities that host the race. Since the last race was virtual, people from all over America had the option to raise funds for a community beneficiary of their choosing.

Together they have raised over $15,000 for community food banks, favorite restaurants, frontline worker support and even a horse rescue!

With this success, supporting individuals and teams in engaging with their friends and family to provide much needed funds during the uncertain times of COVID 19, they are excited to announce that they have launched their next virtual race with a variety of fundraising options!

Below are some of the logistics:

  • Fundraising and race deadline will be July 19, 2020
  • Distances include Half Marathon, 50K, 60K, 50 Miles and 100K
  • These distances do NOT need to be complete at one time
  • Teams are encouraged!
  • They can create a team for your business and/or organization
  • Swag will be distributed based on funds raised

Donation levels can be found on this page (https://www.staycationraces.com/fundraising/)

All community beneficiaries must be a business or nonprofit (they cannot give to individuals)

They don’t want this to be one more thing that you need to manage as you are probably busy figuring out how to sustain all of the current changes. Once you have a team or individual fundraiser created for your organization or business, they will be able to support your fundraising efforts.

Below is the link to register (and it has a little more information about the event):

https://www.staycationraces.com/backyard-ultras/

Amy Ben-Horin
Executive Director
Wander Project
www.wanderproject.org
970.445.0644

 

Emergency Funding Available

Friends of Union Pacific Foundation has allocated additional funds for COVID-19 response projects providing immediate results.

The Foundation broadly defines COVID-19 projects. Some provide food and shelter, others Personal Protective Equipment, and still others focus on addressing educational gaps caused by school closures. You can learn more here

Zero Hunger | Zero Waste Emergency COVID-19 Relief Fund hopes to direct $10 million to local, state, and national relief organizations. 

The Kroger Co. Zero Hunger | Zero Waste Foundation Launches Emergency COVID-19 Response Fund (press release)

Create an account today to apply for funding.

Online Presentations


Online Fundraising Discussion with Devin Thorpe

April 2, 2020: Where are you taking your fundraising plans? Many throughout the country are moving their fundraising plans online and UNA partnered with Devin Thorpe, crowdfunding professional, to provide a review of best practices for online fundraising strategies.


SBA Disaster Loans and PPP Loans

April 2, 2020: Utah Nonprofits Association and NOW CFO teamed up to educate and discuss with nonprofit leaders how to apply for relief funds.

  • To watch the full presentation, including the Q&A CLICK HERE
  • To review the slides from the presentation CLICK HERE

Additional Forms and Information

SBA Loan Website

April 3, 2020 The Small Business Administration issued an interim final rule explaining details about the Paycheck Protection Program set to start granting loans on Friday, April 3.

Interest Rate: the interest rate for PPP loans has now been set at 1.0 percent, up from the 0.5 percent reported earlier.

Application: Borrowers must complete the SBA Form 2483 (Paycheck Protection Program Application Form) and provide payroll documentation.

Payroll Costs Defined: Since this is important, we’ll quote what SBA says in its entirety:

Payroll costs consist of compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips); payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wage, commissions, income, or net earnings from self-employment or similar compensation.

Exclusions from payroll costs include compensation for employee based outside the U.S,, compensation in excess of $100,000 (prorated), federal payroll taxes, qualified paid leave under the Families First Act.

Calculating Payroll Costs: The rule lays out a five-step process for calculating payroll costs for purposes of PPP loans:

  1. Aggregate payroll costs (see above) for last 12-months;
  2. Subtract pay from each employee in excess of $100,000;
  3. Divide step 2 total by 12 months to get the monthly average;
  4. Multiply step 3 total by 2.5; and then
  5. Add any outstanding amount from an EIDL loan received between 1/31/2020 and 4/3/2020, “less the amount of any ‘advance’ under an EIDL COVID-19 loan (because it doesn’t have to be repaid).”

Lender Scrutiny should be minimal. The interim final rule states: “The lender does not need to conduct any verification if the borrower submits documentation supporting its request for loan forgiveness and attests that it has accurately verified the payments for eligible costs. The Administrator will hold harmless any lender that relies on such borrower documents and attestation from a borrower.”

75%-25% Rule for Forgiveness: Another decision made official in the new rule is that SBA will limit how much of a loan can be forgiven based on how the borrower spends the money. SBA states that loan forgiveness requires that at least 75 percent of the loan amount be spent on payroll and no more than 25 percent on other eligible expenses (rent/mortgage, utilities). This restriction isn’t in the statute but SBA says it is imposing the restriction to promote employment.


GrantStation lists available funding opportunities during the Covid-19 pandemic. Click here to see the available funding opportunities.


Tax Advice on Refundable Payroll Tax Credits

The IRS website posted an explanation of the refundable tax credits available to small and midsize businesses that are required to provide the paid leave. The explanations, arranged in a helpful Q & A format, clarify the common areas of confusion. For example, they make clear that the tax credit applies to mandated wages paid and associated health plan expenses (#9), employers that have provided paid leave are entitled to retain payroll tax payments (#17), and employers are entitled to claim both the paid leave tax credit and the Employee Retention tax credit (#18). The explanations also address the interplay between Paycheck Protection Program loans and the paid leave tax credits (#19), how to calculate qualified sick leave (##20-24) and qualified family leave (##25-29), and how to claim the credit (##38-43). In all, there are 66 questions and answers.

IRS Q&As – 56. May a tax-exempt employer receive the credits? “Yes. The FFCRA entitles Eligible Employers that pay qualified sick leave wages and qualified family leave wages to refundable tax credits. Qualified sick leave wages and qualified family leave wages are those wages for paid sick leave and paid family and medical leave that are required to be paid under the FFCRA. Tax-exempt organizations that are required to provide such paid sick leave or expanded paid family and medical leave may claim the tax credits.”


Charitable Benefits Under CARES Act: What You Should Know

Compiled by Ray Quinney & Nebeker, a law firm in Utah offering clients an experienced, innovative, and diverse team of legal professionals whose objective is to make a meaningful contribution to their clients’ success.


Other Help


Digital Fundraising Platforms

  • Auctria – online fundraising / auction platform
  • CauseVid – nonprofit stewardship video platform
  • Give Lively – free fundraising platform
  • Funraise – online fundraising platform / donor database
  • GiveSmart – online auction / event software
  • Caring Crowd – crowdfunding platform

Other Resources