CARES Act Offers Relief for Struggling Nonprofits, Including Churches

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on Friday, March 27.

The Act includes assistance in a number of forms, including forgivable loans for small businesses (including churches), employee-retention tax credits, direct stimulus payments to Americans, enhanced unemployment aid, payroll tax deferment, and charitable giving incentives.

The following resources will be helpful in evaluating the assistance available and determining what is most appropriate for your parish:

Please note that the Paycheck Protection Program (PPP) Loan, the Economic Injury Disaster (EIDL) Loan, and the Employee-Retention Tax Credit appear to be the programs which provide the greatest amount of assistance, depending on the size of the parish. The Employee-Retention Tax Credit provides a refundable payroll tax credit for 50% of wages paid during a total or partial closure of a parish during the COVID-19 crisis (for up to $10,000 per employee). The programs are mutually exclusive, meaning a parish may only take advantage of one of these programs.

We encourage parishes to consider the various types of relief available and if possible, to consult with a tax attorney or other expert in making the best decision. Please contact either the Rev. Canon Kim Karashin or me with any questions or concerns.

Faithfully,

Kathi Workman, Canon Treasurer
kworkman@episcopalpgh.org