You may be wondering if you still need to file your taxes on the due date despite the coronavirus (COVID-19) outbreak. The good news is that the IRS has pushed the due dates by 90 days for individual tax returns. Most states have already moved to adjust filing and payment deadlines. As far as tax filings for nonprofits, it is still a developing situation as of March 23, 2020. Given the seriousness of this pandemic and how it has affected nonprofits, we are optimistic that a favorable announcement will be made soon.
While government and local authorities are playing a big role in stemming the tide of COVID-19, many nonprofits are at the forefront of this crisis. They are the de facto boots on the ground providing services to communities facing profound disruption to their lives. Their work is as important as ever and they need all the help they can receive from the government and individuals.
Nonprofits are facing challenges comparable to those faced in the depression of the 1920s and the last great recession of 2008. The effect of the coronavirus on nonprofits is already significant. Operations have been disrupted. Their ability to serve communities in need has been impacted. To make matters worse, nonprofits have had to cancel fundraising events that they rely on to meet their budgets so that they can stay in operations. In the upcoming days and weeks, charitable contributions that are needed now more than ever are going to be seriously curtailed.
While Congress has recognized nonprofits in the impending corona virus relief package by including small business administrative loans, economic injury disaster loan grants and inclusion of charitable deduction, we are hoping that further amendments will prioritize nonprofits. This is vital not only because nonprofits generate 5.4 percent of GDP and employ over 12 million people but principally because they are at the forefront of the response to this pandemic.
The bottom line is that if nonprofits are forced to scale back services or worse still terminate operations, our economy will take a hard hit along with those who rely on the services that nonprofits provide We all need to get on the phone and call our congressional representatives to not only recognize the nonprofit sector but also understand how important it is for them to prioritize them in the upcoming relief package.
Labyrinth and Harbor Compliance Are Now One!
Labyrinth, Inc. and Harbor Compliance are coming together to further serve the nonprofit sector. This move aligns our 32-year track record of expertise and client satisfaction with Harbor Compliance’s robust compliance software. Check out the most comprehensive compliance solution available to the nonprofit sector!