Were Your Annual In-Person Fundraising Events Cancelled ?

An independent school was unable to hold their in-person fundraising events. Because of the Alternative Quarter Provision which automatically allows an organization to “look back” to the previous quarter for ERC eligibility, they were able to claim over $300K in ERC over 2 quarters due to a significant decline in gross receipts.

Similarly, an animal rescue shelter that was not able to hold their annual gala experienced a significant decline in gross receipts for the quarter in which it would have been held in 2021. Because of the “Alternate Quarter” provision of the ERC program, they were automatically eligible for the next quarter. Total ERC claimed in excess of $70K

Did Your Customers’ Experience of COVID Create a Domino Effect for Your Organization?

A small independent newspaper experienced a decline in advertising revenue largely due to the closure of their retail customers. Their decline in revenue resulted in ERC eligibility in excess of $65k over two quarters.

Similarly, two small business development organizations, including a Chamber of Commerce, experienced significant declines in revenue due to drops in membership and/or cancellation of annual events resulting in eligibility based on comparisons with pre-pandemic quarters.

Were Your In-Person Programs, Classes or Services Cancelled Due to COVID?

Due to restriction on in-person gatherings, a church had to cancel all in-person programs including services, choir programs and on-site meetings. During this time, they continued to keep their Sexton and Music Director on payroll. Prior to the pandemic, the number of service hours devoted to the programs that were prohibited by Government Mandate represented greater than 10% of total payroll service hours. As a result, they were eligible for ERC for the quarters in which their programs were disrupted (partially shutdown) due to Government Mandate.

Similarly, a theater that was closed for all in-person programs was eligible for over $50K in ERTC despite having received both PPP loans and Shuttered Venue Grants because the wages covered by those programs were not paid during the quarters in which they were eligible for ERC.

Does Your Non-Profit have a Retail Revenue Stream that was Disrupted by COVID?

A National Wildlife Refuge’s retail gift shop was closed due to Government Orders. Due to a decline in gross receipts, they were eligible to claim nearly $75K in ERC for 3 quarters in 2021.

Did Your Payroll Company Tell You You Were Only Eligible for One Quarter in 2021?

A conservation organization had been told by their payroll company that they were eligible for ERC for one quarter in 2020 and one quarter 2021. Upon review, we determined that they were also eligible for an additional quarter their payroll company had missed. Because of the Alternative Quarter Provision, organizations that experience an 20% or greater decline in gross receipts in Q4, 2020, Q1 2021 or Q2 2021 are automatically eligible for ERC for the next Quarter ( Q1, Q2 Q3 2021 respectively.)

Was Your Organization Allowed to Reopen but with Restrictions around Occupancy, Social Distancing and Safety and Hygiene Requirements that Continued to Impact Your Bottom Line?

A museum in the Adirondacks was closed completely due to Government Mandates from March – May of 2020 when phased re-opening began. Because of social distancing and safety and hygiene requirements, they were not able to open above 50% capacity until Spring of 2021. The impact on their admissions and in-service programs during the time of government restrictions resulted in eligibility during the impacted quarters.