USA Nonprofit Questions

[Chicagoguy43]

I have a new client who runs a travel baseball league. This league has been in existence for years. It was originally a 501(c)(3), changed to just a nonprofit when the organization got smaller (less kids) and is now set to grow quickly next year. My questions are:

1. What does he need to do to get 501(c)(3) status again?
2. Are there any stimulus relief benefits a nonprofits such as is?
3. What kind of loans are now being offered to nonprofits? What kind of terms should he expect?

Thanks!

 

[Werner Reisacher]

1.) Remove the problems that have caused the exclusion in the first place.
2) Submit an application for the Status 501c
3) I always suggest that the application is supported by an explanation letter outlining the reasons that have caused the loss and the remedies that have been put in place to remove those problems. These often eliminate lengthy investigations.

- Yes. PPP loans for paycheck protection provided that the organization meets the requirements under the program. (Being employed at least since Feb. 2020 and having an established steady employment relationship with the organization based on past history. Not available for people that are hired occasionally or that are working as volunteers.

- If it is a loan - 2 year period if all the requirements are met, a debt forgiveness grant.