July 22, 2021
We know a lot of ministries were significantly impacted by COVID-19 in 2020 and may still be feeling the effects today. Most ministry leaders don’t realize there is funding available to non-profit employers including churches, schools, colleges, and camps.
Our agency wants to make sure you're aware that your ministry may qualify for up to $33,000 per employee through the Employee Retention Credit (ERC). Below are some highlights about the credit and guidance on where to start to see if your ministry is eligible.
What is the ERC?
The Employee Retention Credit (ERC) is a fully refundable payroll tax credit for eligible employers. It was initially created by the 2020 CARES Act to encourage businesses to keep employees on their payroll during widespread business interruptions caused by the pandemic.
The Tax Relief Act of 2020 makes the ERC available to employers even if they received PPP loans, as long as PPP funds are not used to calculate the credit. The American Rescue Plan Act of 2021 extended the ERC through December 31, 2021.
Eligible organizations can receive a tax credit of up to $5,000 per qualified employee in 2020 and up to $28,000 per qualified employee in 2021.
Note: This tax credit cannot be claimed for pastors and clergy, because they are exempt from the federal employment taxes (FICA), upon which the credit is based.
Does My Ministry Qualify?
Eligible employers include businesses and tax-exempt organizations that experienced EITHER ONE of these situations:
Seek the Credit for Your Ministry
Check out the Ministry Guide to Claiming the Employee Retention Credit on the MinistryWorks® website to learn more about how to qualify. If you qualify, the MinistryWorks team can also help your ministry claim the credit. They’ve already helped more than 400 ministries. On average, the organizations they’ve helped are claiming about $93,000.
MinistryWorks by Brotherhood Mutual is a payroll and payroll tax-filing service created to help churches and related ministries save time and money so they can focus on building the Kingdom.
*The above blog post is intended to be helpful, but does not constitute legal advice nor tax advice, and is not a substitute for legal advice from a licensed attorney or tax advisor in your area.
*We encourage you to consult with a licensed attorney and/or tax advisor in your jurisdiction to determine how local, state and federal law applies to your specific circumstance.
With the holiday season right around the corner, it’s wise for ministries to evaluate their fire safety plan. Whether your ministry is hosting a holiday party, prepping treats for charity, or running a community kitchen, make sure you’re well-prepared with these tips.
As school is back in session, it’s important to make sure your school is equipped with the correct safety procedures. Thinking about your school’s physical security as a series of layers can help you find gaps in your plan. Transportation and volunteers are just two important aspects of your school safety plan to think about.
Anyone who turns on the news, flips through a magazine, or browses the web can see that American society and culture are experiencing rapid transitions. Some ministries have valid concerns that issues surrounding societal shifts may expose them to negative publicity, governmental scrutiny, or litigation.
The questions become: when and how can ministries operate within their deeply held religious beliefs when they may conflict with others’ rights?
Cyber security is increasingly crucial in our technologically advanced world. Scammers use many schemes when attempting to steal your data, but you can outsmart them by understanding their methods.
Most ministry leaders don’t realize there is funding available to non-profit employers including churches, schools, colleges, and camps. This post includes some highlights about the credit and guidance on where to start to see if your ministry is eligible.
If your church is anything like mine, Vacation Bible School (VBS) is a big deal. Not just because it is central to our ministry’s outreach to young families, but because of the important role that VBS plays in the spiritual formation of children.
April is National Child Abuse Prevention Month. Though child abuse may not be something you could ever imagine happening within your ministry, sexual abuse of a minor is one of the top five reasons churches end up in court, according to Church Law & Tax. Studies also show that a child is much more likely to be sexually abused by a trusted adult than a stranger.
When severe storms strike, they can produce high winds and tornadoes. Damaging winds can wreak havoc on your ministry’s property and to buildings. A high wind event can crash debris through your windows, strip your siding, down trees on your parking lot, peel shingles off your roof, and fling back the flashing.
Thieves are taking advantage of soaring precious metal prices. Take steps to protect your ministry’s vehicles and property.
As the Director of Ministry Safety for our agency, I am dedicated to finding ways to help safeguard ministries like yours.
As temperatures plummet, the risk of freezing pipes soars. Frozen pipes can cause costly messes that could also put your ministry on hold while you clean up.
On behalf of our agency, I recently participated in one such training which focused on strategies and tactics for responding as a single officer to an active safety threat in a school building.
If you’re anything like me (and maybe the rest of the world for that matter), you’re grateful to put the craziness of the past year behind us.
Preparing for this Christmas season may require additional creativity, due to the uncertainty of what COVID-19 may bring in our local community.
A mid-November deadline in the Boy Scouts of America’s (BSA) bankruptcy proceedings may have you wondering what the organization’s bankruptcy filing means for your ministry if you ever hosted or chartered Boy Scout Troops.
Organizations that obtained Paycheck Protection Program (PPP) funding through the CARES Act can have their loans forgiven, turning them into grants. To qualify, each borrower must file a forgiveness application with its PPP lender, proving that it followed the rules. If your church, school, college, or camp meets all the criteria, 100% of its loan can be forgiven.
Ministries are creatively scrambling to continue their operations and safely engage their congregations with an array of online technologies during the coronavirus pandemic. Unfortunately, hackers are ready to take advantage of the confusion with scams designed to steal valuable data or siphon funds from your ministry.
Learn about the CARES Act and two loans for which ministries may be eligible, since Congress authorized additional funding April 23.