The CARES Act and your organization or church

The Coronavirus Aid, Relief and Economic Security (CARES) Act provides support to churches, nonprofits and small businesses, in response to the economic distress caused by the COVID-19 (coronavirus) global health pandemic. To help your church or organization make sense of this legislation, Everence® has compiled the following information and resources from trusted sources.
Financial documents for Covid-19 relief

Organizations

The CARES Act provides substantial stimulus funding relief for businesses and nonprofits, including the following.
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Charitable giving incentives

To encourage charitable giving, the CARES Act allows individuals who do not itemize their taxes to deduct up to $300 of cash contributions to nonprofits from their taxes in 2020.1
Grants and funding file folders

Emergency grants

Thanks to expanded eligibility criteria, small businesses and 501(c) private nonprofits may apply for low-interest Emergency Economic Injury Disaster (EIDL) grants. Organizations seeking immediate relief can receive a $10,000 emergency advance within three days after applying for the grant, too.
Green piggy bank sitting atop a calculator

Employee retention tax credit

Organizations that have fully or partially suspended operations due to COVID-19 or experienced a more than 50% decline in revenue compared to the same quarter last year may be eligible for an Employee Retention Credit3,4,5 for wages paid or incurred from March 31 – Dec. 31, 2020.
W-2 form to be filled out

Payroll tax deferral

Organizations may delay payment3 of their employer share of Social Security taxes on employee wages in 2020, and instead pay them in equal halves at the end of 2021 and 2022.
Two hands pointing to and review financial charts

Economic stabilization loans

Larger organizations ineligible for the Paycheck Protection Program may be eligible for the CARES Act’s Economic Stabilization Fund, which provides loans, loan guarantees and investments to help retain employees and restore compensation and benefits.

Churches

As your church adjusts to ministering remotely, you might also be feeling the financial strain of being closed due to COVID-19. The following resources may help your church leaders address some of those issues.
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Charitable giving incentives

To encourage charitable giving (including tithes and offerings), the CARES Act allows individuals who do not itemize their taxes to deduct up to $300 of cash contributions from their taxes in 2020.1
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Tax filing extension

Pastors and church staff who use the estimated tax procedure to prepay federal taxes should be aware of the CARES Act’s income tax-filing date extension to July 15, 2020 and postponement allowance for estimated tax payments until Oct. 15, 2020.
Bible and notebook sitting open on a table in an office

Employee retention tax credit

Churches that have fully or partially suspended operations due to COVID-19 or experienced a more than 50% decline in revenue compared to the same quarter last year may be eligible for an Employee Retention Credit3,4,5 for wages paid or incurred from March 31 – Dec. 31, 2020.
Man calculating taxes on a couch

Payroll tax deferral

Churches may delay payment3 of their employer share of Social Security taxes on employee wages in 2020, and instead pay them in equal halves at the end of 2021 and 2022.

Supporting you during the COVID-19 outbreak

As we collectively navigate this global health situation, Everence is here to support you and your constituents.

 

Disclosures

1Donations to donor advised funds do not qualify for the CARES Act charitable giving provisions.

2For the Paycheck Protection Program (PPP), eligible nonprofits, churches and businesses are permitted to apply for the lesser of 2.5 months of payroll costs or $250,000 through Everence. Up to 100% of the loan is forgivable when funds are used for certain approved expenses and employee retention requirements are met. Churches and organizations wishing to apply for a PPP loan must contact an SBA-approved lender. Everence clients and Everence Federal Credit Union members may apply for this government-sponsored lending program through Everence. Other SBA-approved lenders may be found at sba.gov.

3Organizations and churches that receive a loan under the PPP are not eligible.

4The Employee Retention Credit is in addition to the payroll tax credit provided under the Families First Coronavirus Response Act.

5The Employee Retention Credit provision prohibits employers from obtaining both the Employee Retention Credit under the CARES Act and either a Work Opportunity Tax Credit under Internal Revenue Code (IRC) Section 51 or an Employer Credit for Paid Family and Medical Leave under IRC Section 45S.

6The Internal Revenue Service treats all churches as tax-exempt, even if they have not applied for 501(c)(3) status or if they claim such status under the umbrella of a larger 501(c)(3) nonprofit organization.

Everence gift plans administered by Everence Foundation.

The situation surrounding COVID-19 is evolving and, therefore, the subject matter discussed on this page may change on a daily basis.

Information contained on this page is for general educational purposes only. It is not intended to serve as legal, accounting or other professional service or advice. Additionally, due to the nature of the U.S. legal system, laws and regulations constantly change. If legal advice or other expert assistance is required, consult with a competent legal, accounting and/or financial professional.