COVID-19’s Lasting Effects on Nonprofits – Management and Governance
Probably the single most important management issue put in the spotlight by the pandemic has been cash management. Nonprofit managers should focus on building their operating reserves by reviewing billing and collection processes, as well as implementing cost reduction strategies.
Changes to the Child Tax Credit
Significant changes to the child tax credit were enacted in recent months. Many families will receive increased credit amounts and can receive up to half of the credits as advance monthly payments beginning in July.
COVID-19’s Lasting Effects on Nonprofits – Financial Reporting
Nonprofits should consider the impact of COVID-19 on the organization’s accounting and reporting for areas like fair value measurement, modifications of liabilities, and going concern evaluations.
COVID-19’s Lasting Effects on Nonprofits – Relief Programs
The American Rescue Plan Act of 2021 made many large nonprofit organizations eligible to apply for PPP loans for the first time. The legislation also provided new or extended employment-related programs (such as the Employee Retention Credit) and allocated federal funding for many programs championed by nonprofits, such as childcare, arts and humanities, food assistance and services for the homeless.
Should You File Past Due Tax Returns?
Every year, many people who should have filed a tax return (or several years of returns) don’t file. Some think that if they cannot afford to pay the taxes due, they are better off not filing. For one reason or another, they missed the deadline and now wonder whether they’re better off filing the past due returns or trying to forget them.