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ASTC - Employee Retention Credit for Nonprofit Organizations

Check out the Employee Retention Credit (ERC) webinar we recently presented to Association of Science and Technology Centers members to learn how the ERC applies to nonprofits.

Calculate Your ERC Credit

Estimate Your Credits and Reduce Payroll Tax Before the Deadline to Claim

We have created a quiz to help you get a head start on estimating your credit.
Take our short quiz to get an idea of what this benefit can look like for your business today!

About the Employee Retention Credit

The Employee Retention Credit (ERC) is a payroll tax incentive developed to reward employers, including 501(c)(3)’s, for keeping employees on payroll during the pandemic. alliantgroup has worked closely with decision makers in Washington on this nationwide effort to help the U.S. economy not only recover from the pandemic, but to come back stronger than before.

The Employee Retention Credit is one of the most lucrative incentives included in the $1.9 trillion COVID-relief bill for nonprofits. ERC can provide even more relief than the Paycheck Protection Program (PPP).

Other impacts that could qualify your organization for the Employee Retention Credit include:

  • Full or partial shutdowns
  • Stopping programming (like cancelling performances or in-person events)
  • Paying employees who are not able to work
  • Vendor disruptions
  • Reduced hours of operation
  • Changing hours to sanitize your facility
  • And more

The ERC has gone through significant updates, so even if you and your advisor have reviewed ERC before, we encourage you to take another look with one of our specialists to uncover all qualifying activities and wages that will maximize your benefit and refund.

How Does My Organization Qualify?

Recent IRS guidance has made clear that ERC is available to 501(c)(3)’s and businesses alike. If you were affected by government-mandated shutdowns—at the federal, state, and local level—then you likely qualify for ERC.

For example, a science and technology center that had to cancel in-person events or a food bank that had to transition to delivery would both be great candidates for the ERC.

Can ERC be Combined with PPP and/or SVOG?

Yes, this credit can be claimed alongside other relief options, including Paycheck Protection Program (PPP) and the Shuttered Venue Operators Grant (SVOG). Our team of experts will work with you to identify what expenses should be allocated across these programs to ensure you maximize the amount of relief your organization receives.

How Much Can I Expect from the Employee Retention Credit?

The ERC is currently one of the largest refundable tax credits available and can deliver thousands of dollars in credits per employee each quarter. Our nonprofit clients have seen credits up to 5x more than the size of their PPP loan. Your organization can also receive a cash refund if there’s any amount leftover after your tax obligation is reduced to zero.

Here is an actual case study from a recent nonprofit client.

A nonprofit with $4 million in revenue and 250 employees received over $1 million in refundable credits by partnering with alliantgroup to complete their Employee Retention Credit study.

A few of their qualifying disruptions included:

Fully or partially suspended operations due to government order
– Limited commerce, travel, and meetings due to COVID-19
Reduced hours for sanitation

Am I Eligible if I Work with a Professional Employer Organization (PEO)?

Yes, nonprofits are still eligible for the Employee Retention Credit even if they work with a PEO. Our specialists are familiar with this staffing structure and can help guide you through the nuances.

WHITEPAPER DOWNLOAD

ERC CHECKLIST FOR NONPROFITS

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About alliantgroup

alliantgroup is headquartered in Houston, TX and has helped 27,000 Businesses claim over $16 Billion in tax credits so they can grow their business and employ more Americans.

Why Choose alliantgroup?

  • With over 1,500 technical experts across 50 industries, including attorneys, PhD’s, accountants, architects, engineers, software developers, and scientists we can effectively partner with your team.
  • We are guided by our Strategic Advisory Board members, such as former IRS commissioners and lawmakers, who were instrumental in creating and enforcing the U.S. tax code.
  • Our experts ensure your tax credits are 100% IRS compliant, but in the event of an audit alliantgroup will defend your ERC study at no cost.

Ready to get started?

Schedule a free consultation with our team of experts to learn more.
We’ll discuss your eligibility and help estimate your potential tax benefit.