If your nonprofit organization has experienced a significant decline in revenues or if it was subject to a government-mandated reduction in its activities, your organization may be eligible for a sizable federal cash benefit called the Employee Retention Credit.
Because this benefit comes in the form of a “tax credit,” and because the eligibility rules have a number of details, the Employee Retention Credit can seem intimidating. Below is an explanatory guide to the Employee Retention Credit that is as readable and non-technical as possible.
Since the Employee Retention Credit could provide substantial funds to eligible organizations, we believe the leaders of every nonprofit organization should have a basic awareness of the eligibility requirements. A basic awareness will allow a nonprofit’s leaders to determine whether to further evaluate their organization’s eligibility for the benefit.