Update on Government Subsidy Programs Available for Not-for-Profits During COVID-19
By CCVO Guest Blogger Robin Butler, Supervisor NPO Division, The Catalyst Group
It’s been a year of change and uncertainty. As we all navigate the impacts of COVID-19, it’s important to utilize the programs available if your Not-for-Profit is struggling. In this blog post we are going to discuss important tips for the existing subsidies, NPO-specific considerations for those subsidies, as well as Alberta Gaming and Liquor Commission (AGLC) funding guidelines. For details on the subsidies themselves, please refer to our blog.
Temporary Wage Subsidy (TWS)
The 10% Temporary Wage Subsidy (TWS) works along with the Canada Emergency Wage Subsidy. However, for the TWS it is important to note that you must fill in a PD-27 Self Identification Form when applying. To learn more about this form visit the Government of Canada website.
Canada Emergency Wage Subsidy (CEWS)
The CEWS is perhaps the most widely used subsidy by NPOs, and also the most confusing. Specific to NPOs, when calculating revenues for the CEWS you can elect to remove government funding – this would include Municipal, Provincial, or Federal funding, including COVID funding received.
When calculating revenues for the CEWS, make sure that whatever method you use is applied consistently in both the current year and the year being compared. If you elect to remove government funding from the revenue figures, remove that funding from both the current period and the prior period for the calculation. In addition, make sure you’ve updated any deferrals to show month-to-month for both periods being compared to ensure you are comparing apples to apples, and using accurate information.
As a result of the recent Bill C-9, a number of changes were implemented to CEWS including an extension. You can view these on the Government of Canada website, along with guidelines on how to calculate the subsidy:
Canada Emergency Business Account (CEBA)
This loan is intended to support Not-for-Profits by providing financing for their expenses that cannot be avoided or deferred. Many Not-for-Profits think that this loan through financial institutions doesn’t apply to them as they aren’t for profit, but that is not the case. Learn more about the loan on the CEBA site.
Alberta Gaming and Liquor Commission (AGLC) Funds
If you have a casino fund, review the extended AGLC rules for usage of these funds. The AGLC has added additional flexibility. Learn more about the funds on this AGLC Q&A sheet.
Canada Emergency Rent Subsidy (CERS)
This subsidy covers part of your commercial rent or property expenses if you have seen a drop in revenue due to the COVID-19 pandemic starting on September 27, 2020, until June 2021. This subsidy will provide payments directly to qualifying renters and property owners, without requiring the participation of landlords. Learn more about it on the Government of Canada website.
We recently released a short video explaining some of these updates as well, which can be viewed here or through the image to the right.
If you have any questions, don’t hesitate to reach out to Catalyst. This is uncharted territory for us all and we are navigating it together. You can learn more about all the subsidies available from the Government of Canada here.
About Catalyst
Catalyst works extensively with Not-for-Profits and registered charities on all accounting related matters including bookkeeping, financial and tax reporting, audit support and senior financial professional outsourcing (CFO support). They also host virtual roundtable sessions to assist charities and NPOs with their operations.
With a team of dedicated specialists in this area, Catalyst becomes a key member of the Not-for-Profit or registered charity’s team to align performance and organizational goals. There are several web-based programs that can assist in reporting requirements for a charity. Recently, Catalyst was named one of the fastest growing cloud accounting firms in Canada; they would be thrilled to bring their knowledge in this area to your organization.
Feel free to contact Robin at 403-767-1546 or robinb@thecatalystgroup.ca