Author: Ketel Thorstenson, LLP

KT Insights
 |

A New Round of COVID-19 Relief Announced

Dear Clients and Friends –

Just in time for Christmas, Congress brought us a new round of COVID-19 relief today.  Turning coal into diamonds, there are provisions of this act which are a benefit to taxpayers. A few highlights to note:

  • Congress fixed the deductibility of PPP expenses. Business expenses paid with PPP loan funds are now tax deductible, effectively making the 2020 PPP funds tax exempt income.
  • A new round of PPP funding was released. PPP2 will be for eligible first time borrowers and to certain businesses who previously received a PPP loan. Qualified businesses must show a 25% gross revenue decline in any 2020 quarter compared to the same quarter in 2019.  501c(6) businesses may now also qualify for a PPP loan. 
  • An increased unemployment supplement for $300 per week was added through March 2021. 
  • Often cited, a $600 stimulus payments to individuals was approved.

The elves at KT will be working to read the full bill when signed by the President and we will be ready to consult on questions.

While we work through the details, we’d like to share an article with a more in depth summary of provisions of the bill:  Stimulus Payments, Paycheck Protection Program Expense Deductibility Headline Tax Changes In Latest COVID Relief Package (forbes.com)

December 22, 2020
| Ketel Thorstenson, LLP
KT Insights
 |

Grow Your Network and Strengthen Donor Relations During Crisis

The COVID-19 pandemic has taken its toll on everyone. That means it has impacted both your organization and your donors. Everyone is struggling. However, while we all scrambled in the beginning, it’s time to adjust to the new normal so that nonprofits can get their fundraising strategies back on track.

The foundation of success for any organization is the ability to build and maintain strong, lasting relationships. A pandemic does not change this truth, it just alters some of the approaches taken to achieve it. How do you fill the “in-person” gap of meeting new people (prospective donors) out in the community? And how do you build and maintain a relationship without face-to-face contact?

Here are some things you can start doing today.

1. Lean on existing connections to grow your network
If you have a specific person you’d like to speak with, look at your mutual connections on LinkedIn, and ask for an introduction. Reach out to your existing network and ask if there’s anyone they could recommend as well, being as specific as possible. If you don’t have a list of specific people you want to meet, start developing one. LinkedIn’s searchable features are helpful in narrowing prospects.

Think of your network as a growing tree. It takes water, sun, fertilizer, and attention. You have to be intentional. Tell your mutual connections what you are wanting to do, and ask “do you know anybody you think I should connect with?” Request an email introduction to start the process. And then, when you meet that person, ask them the same question. Grow your network.

Keep in mind you are coming at this wanting to meet and learn about others with the intent on building a friendship and offering help to others before asking for anything in return. This process obviously does not produce overnight results. It takes time and demands some routine, even if it’s just a focused effort of a couple hours a week. 

Don’t forget to return the favor by recommending others connect. You will find it easy to do as you learn more about each person you are meeting. You will start to identify key connecting points. Use those when hosting an introduction. It can be as simple as tagging both on a social media platform and calling out a mutual interest or topic of focus.

As you develop a system for leaning on your existing connections, share that with your organization’s staff, board of directors, and volunteers and get them engaged in doing the same with their connections. Now you have expanded your reach considerably.

As relationships start to form, encourage the first ask to be signing up for the organization newsletter as this will be a good introduction to the services offered, level of need, volunteer and donor opportunities and impact made.

2. Turn to social media
As people stay at home during COVID-19, they’re increasingly turning to digital media channels to connect with one another. There are many ways to find people on social media, including checking out a trending topic on Twitter for clever insights or joining a LinkedIn or Facebook livestream and connecting with the host and guests after.

Many professionals are taking part in webinars and virtual events to share their insights and case studies as we seek to respond to the COVID-19 crisis, as well as better connect with consumers, donors, and employees. These can also be a goldmine for networking. Mention that you appreciated their thoughts when you send your messages.

3. Recruit top executives to communicate with donors
In times of uncertainty, we tend to look to authority figures for guidance and reassurance. If able, recruit your nonprofit’s top executives to communicate with donors during coronavirus and detail your nonprofit’s plans for moving forward. By addressing potential concerns, you can strengthen your existing relationship with donors and build trust in your nonprofit for the future. 

Be mindful when selecting your communication method. Make sure that your outreach strategy matches the gravity of the situation and that your messaging is consistent across all platforms.

4. Showcase your nonprofit’s impact
Sending emails, letters, and posting on social media detailing your crisis management plan is important when communicating with donors and the community, but so is offering hope and inspiration. Remind donors of all the good you’ve accomplished together, whether it’s feeding 500 hungry families or helping 50 homeless individuals get back on their feet.

Reach out to the people who’ve benefited from your programs and see whether they’d be willing to share their experiences. Personal stories from people you’ve helped can make a long-lasting impact on your donors. Stories, photos, and videos allow donors to see the direct impact of their contributions and can ultimately strengthen your relationship beyond the crisis.

5. Host a virtual event
Consider hosting a virtual fundraiser or event. These events make it possible for donors to feel more connected to your nonprofit and mission, despite current crises. If you’re unsure, you can always start small and scale later. Virtual events are easy to repeat, allowing you to make changes until you find the perfect formula for your nonprofit.  These events provide an opportunity for supporters to virtually gather together and stay connected while social distancing.

Here are some ideas: 

  • Organize a virtual charity walk/run
  • Run a donation matching drive
  • Coordinate an online auction
  • Start a book club
  • Host an activity like wine tasting or cupcake decorating

6. Make an in-kind giving wish list
Rather than ask for monetary donations from your supporters, make a wish list (like a registry) on sites like Amazon. This way, supporters know exactly what their money is going toward and the impact they’ll have on your organization. Like a registry, you should be sure to offer item options at all different price ranges so that your supporters can give within their comfort levels.

7. Show additional appreciation for donors’ support
During a time when you know that it’s hard for supporters to contribute to your cause, it’s even more important to show immense appreciation for any contributions they offer. While it’s always important to be appreciative, hard times make it that much more valuable.

By showing additional gratitude for your supporters, you’ll make them feel more appreciated and increase your retention rates. Keep in mind that this is an important strategy for all contributions, not just fundraising. When supporters contribute their valuable time volunteering at your organization, participating in an advocacy campaign, purchasing something off of your wish list or other engagement activities, be sure they know how important those actions are to your nonprofit.

Here are some good appreciation strategies:

  • Send handwritten thank-you notes
  • Schedule video meetings with supporters
  • Set up an appreciation letter campaign
  • Call your supporters on the phone
  • Send emails with impact information
  • Provide small trinkets as a thank you

During a pandemic, it’s important to note not only those who are giving to your nonprofit now, but also those who have given in the past.

Start today making efforts to grow your network and building relationships. Small consistent out-put can produce measurable results. Networking ensures you are building new relationships and ultimately increasing the number of future donors.

Additionally, by focusing some effort on strengthening relationships, especially with existing donors, you increase your odds for retention, referrals, and additional donations.

Donor relationships are often tested during a crisis, which is why it’s important to evaluate your crisis communication strategy. Donors are trying to determine where their dollar will help. You want to be visibly telling your story (on multiple channels) of the impact being made and the level of current need.

December 7, 2020
| Ketel Thorstenson, LLP
KT Insights
 |

WY Business Council Opens Applications for Agriculture and Endurance Funds

The Wyoming Business Council is set to open the next wave of COVID-19 funding for small businesses, nonprofits, farmers and ranchers impacted by the pandemic on Nov. 2.

Eligible businesses and nonprofits can apply for the Endurance Fund but applicants cannot apply more than one time per fund. Eligible entities include all affected Wyoming businesses and 501(c)3, (c)6, (c)12, (c)19 nonprofits with no more than 50 percent of time spent on lobbying.

For Wyoming ranchers and farmers who have lost revenue due to COVID-19 related public health orders or incurred related expenses can apply for the Agriculture Fund. Eligible entities include Wyoming agricultural producers established as of March 13, 2020.

Recipients are not required to pay back the funds; however, all funds received through the COVID-19 Business Relief Program are considered taxable income.

Both fund applications open November 2, 2020, at 10 AM; and close November 18, 2020, at 8 PM.

Read below for details on both funds eligibility requirements, qualifying expenses, and FAQs.

ABOUT THE AGRICULTURE FUND

For Wyoming ranchers and farmers who have lost revenue due to COVID-19 related public health orders or incurred related expenses

  • Timing:  Opens November 2, 2020, at 10 AM; Closes November 18, 2020, at 8 PM
  • Funding: Up to $250,000; Cannot apply more than one time per fund
  • Eligible Entities: Wyoming agricultural producers established as of March 13, 2020
  • Eligible time frame: March 13, 2020, to application date 
  • Total Funding Available: $90 million​

BUSINESS ELIGIBILITY 

  • Has at least one full time (30 or more hours per week) employee 
  • Established on or before March 13, 2020 
  • Headquartered in Wyoming or more than 50 percent of the company’s primary work is located in Wyoming AND at least 60 percent of their employees employed in Wyoming or 60 percent of the business payroll paid to individuals living in Wyoming
  • Must have been adversely impacted as a result of the COVID-19 pandemic or as a result of business interruptions due to a required closure or public health order
    • “Business Interruption” means any interruption to a business as a result of the COVID-19 health emergency and resulting closures. Interruptions may include those inside and outside Wyoming. These may include, but are not limited to: (A) Supply chain disruptions; (B) Decreased demand for products or services; (C) Required closures; and/or (D) Regulatory requirements that make operating unprofitable. 
  • Must show lost gross revenue and/or extraordinary COVID-related expenses

QUALIFYING EXPENSES

Agricultural producers are able to include actual expenses incurred in addition to normal operating expenses solely due to the COVID-19 pandemic in these three categories: 

  • Livestock feed and supplement costs
    • Extraordinary expenses actually incurred between March 13, 2020, and the application date for the feeding of only livestock
  • Custom hire/labor costs
    • Extraordinary expenses actually incurred between March 13, 2020, and the application date for contract work or specialized services physically performed on the agricultural operation. This does not include expenses associated with normal day-to-day operations (i.e. accounting and/or administrative services, lawyers, etc.)
  • Fertilizer, chemical, and seed costs
    • Extraordinary expenses actually incurred between March 13, 2020, and the application date directly related to the production of crops, protein, and/or fiber

ABOUT THE ENDURANCE FUND

Ongoing pandemic response for COVID-19 related losses and expenses for Wyoming businesses and select nonprofits

  • Timing:  Opens November 2, 2020, at 10 AM; Closes November 18, 2020, at 8 PM
  • Funding: Up to $250,000; Cannot apply more than one time per fund
  • Eligible Entities: All affected Wyoming businesses and 501(c)3, (c)6, (c)12, (c)19 nonprofits with no more than 50 percent of time spent on lobbying
  • Eligible time frame: March 13, 2020, to application date 
  • Total Funding Available: At least $24 million; Money available in this fund may increase as unused CARES Act dollars from other programs may be diverted into it

BUSINESS ELIGIBILITY 

  • Has at least one full time (30 or more hours per week) employee; Owner counts as employee 
  • Established on or before March 13, 2020 
  • Headquartered in Wyoming or more than 50 percent of the company’s primary work is located in Wyoming AND at least 60 percent of their employees employed in Wyoming or 60 percent of the business payroll paid to individuals living in Wyoming

NONPROFIT ELIGIBILITY 

  • Must be one of the following: 501(c)(3), 501(c)(6), 501(c)(12), or 501(c)(19) 
  • No minimum/maximum number of employees (part or full time); Volunteer-run organizations are eligible
  • Established on or before March 13, 2020
  • Headquartered in Wyoming or principal operations in Wyoming AND at least 60 percent of their employees employed in Wyoming or 60 percent of the business payroll paid to individuals living in Wyoming.
  • Must have no more than 50 percent of time spent on lobbying

QUALIFYING EXPENSES

Funding awarded shall be used by eligible businesses to compensate for actual losses and for the following expenses already incurred associated with the COVID-19 pandemic:

  • Personal Protection Equipment: Equipment worn to minimize exposure to a variety of hazards; including, but not limited to, gloves, foot and eye protection, masks, respirators, and full bodysuits
  • Cleaning/Sanitizing Supplies: Any product used to prevent the spread of disease by killing germs on surfaces and skin.
  • Signage: Graphic designs, as symbols, emblems, or words, used especially for identification or as a means of giving direction(s) or warning(s) associated with the COVID-19 pandemic

FREQUENTLY ASKED QUESTIONS:

What is “Gross Revenue”?

Gross revenue is the total amount of sales recognized for a reporting period, prior to any deductions. This figure indicates the ability of a business to sell goods and services, but not its ability to generate a profit. Deductions from gross revenue include sales discounts and sales returns. When these deductions are netted against gross revenue, the aggregate amount is referred to as net revenue or net sales. Gross Revenue is found at the top of your income statement.

What kind of losses is the Endurance Fund intended to cover? What does “Lost Business Revenue” mean?

This fund covers gross revenue loss. Business owners and nonprofits will need to compare their current situation to last year (i.e. March 13, 2019 to application date 2019 vs. March 13, 2020 to application date 2020). A worksheet is provided on this page to help you with these calculations.

Lost Business Revenue is the substantiated revenue that would have been earned in the absence of COVID-19 related market conditions. Applicants must be able to substantiate their lost business revenue by comparing 2019 gross revenue to 2020 gross revenue from March 13, 2020, to application date, respectively.

What are “COVID-19 Related Expenses” and what expenses am I allowed to claim for the Endurance Fund?

COVID-19 Related Expenses are the expenses a business experienced as a result of the COVID-19 pandemic. These expenses are in addition to normal operating expenses solely due to the COVID-19 pandemic.

Money awarded in this fund shall be used by eligible entities to compensate for actual losses and for the following expenses associated with the COVID-19 pandemic:

1. Personal Protection Equipment: Equipment worn to minimize exposure to a variety of hazards; including, but not limited to, gloves, foot and eye protection, masks, respirators and full body suits.

2. Cleaning/Sanitizing Supplies: Any product used to prevent the spread of disease by killing germs on surfaces and skin.

3. Signage: Graphic designs, as symbols, emblems, or words, used especially for identification or as a means of giving direction(s) or warning(s) associated with the COVID-19 pandemic.

If I received funds from the Mitigation Fund or had an Extraordinary Expenditure Plan in the Relief Fund, do I include those same expenses on my Endurance Fund worksheet?

If you had Personal Protective Equipment, Cleaning/Sanitation Supplies, or Signage in previous programs please include those expenses within the specific categories of the Endurance Fund. Please only include the specific categories of expenses and not the entire grant amount. Also include any additional expenses within these categories that the business has incurred since the last program application.

Is there a step by step guide on how to apply?

A worksheet is available to download on this webpage to help you calculate your fund amount as well as a video tutorial to walk you through the application process step-by-step.

Why is the Endurance Fund closing on November 18, 2020?

The federal CARES Act requires all funding be allocated and reporting complete before December 30, 2020. As such, the Wyoming Business Council must close applications for the Agriculture and Endurance funds on November 18, 2020, in order to have sufficient time to review all applications and issue and postmark all payments by December 30, 2020. For the last two funds from the COVID-19 Business Relief Program, the Relief and Mitigation Funds, it took the Business Council and State Auditor’s Office more than 30 days to issue $203.2 million in payments to 3,100 businesses and nonprofits.

Will these funds have to be paid back?

No, these are grants that will not have to be paid back. However, this is considered taxable income and you will be required to report it on your 2020 tax return.

Who can I contact for help?

We recommend you work with your accountant, bookkeeper, or local lender to collect necessary data to complete your application. You can also contact your local Wyoming Business Council Regional Director or local SBDC Director for technical assistance.

For technical assistance, please call our toll-free hotline at 1-877-257-7844.

Are government entities eligible?

No, governmental or government-owned entities are not eligible to apply for the Relief and Mitigation Funds. This includes tribal government-owned businesses

Is there a minimum or maximum number of full-time employees required to apply for the Endurance Fund?

Wyoming businesses applying for the Endurance Fund must have at least one full-time employees (30 or more hours per week) and the owner can count as this one employees.

Select nonprofits do not need to have a minimum or maximum number of employees to apply for this fund, unlike previous funds, and volunteer-run organizations are now eligible, as well as nonprofits with only part-time employees.

How do I apply?

Applications must be completed and submitted online using this website. A worksheet is available on this webpage to help you with your fund calcuations.

What forms or additional information do I need to complete my application or verify my business?

As part of our process to verify that we are doing our best to serve true Wyoming businesses, we review each application in a multi-step process. Sometimes we have some trouble with the initial verification and we may ask you to provide additional information. If we need more information from you, you will get an email from [email protected].

It will be helpful to have the following available:

— If you file your business taxes with your personal taxes, please provide the 2019 Schedule C or F

— If you file as a partnership, please upload your 2019 Form 1065

— If you are a corporation, we will need your 2019 Form 1120

— Nonprofits will need to provide their 2019 Form 990.

In order to expedite payment of awards by the State Auditor’s Office, please be careful that all information provided on your application matches your IRS tax documentation.

— If you applied using an Employer ID Number (EIN), you should reference your IRS form SS-4 to verify your EIN and Business Legal Name match on your application down to the last letter.

— If you applied as a Single Member LLC or Sole Proprietor using your Social Security Number (SSN), please ensure your SSN is entered correctly and matches your Business Representative Name exactly.


Can I apply multiple times?

No. The Endurance and Agriculture Funds are mutually exclusive and you are only allowed one application based on your entity type (agricultural producer, business or nonprofit). You can apply for one or the other of these funds but not both and the maximum you can apply for is $250,000.

I received funding from the Interruption, Relief, and/or Mitigation Funds. Can I apply for this Fund too?

Yes, you are eligible to apply for these funds if you have COVID-related losses or expenses since your previous application date; however, you are only allowed to apply one time and cannot apply for BOTH the Endurance Fund and Agriculture Fund. Be sure to include any previous payments as well as other federal CARES Act grant funds received in your application. Those funds will be deducted from this fund’s total award amount.

What CARES Act funds do I need to include in my application and why?

Because the Endurance and Agriculture Funds are money directed to the State of Wyoming through the CARES Act, we must account for any other CARES Act money you have received in order to ensure there is not “double dipping” of these funds. Depending on your business or entity type, you may have received the following funds and must report them on your application. We have provided a worksheet to help you with these calculations.

— Economic Injury Disaster Loan Advance – ONLY the funds received for the EIDL Advance must be included, not the EIDL (Loan) that must but repaid and is not forgiven. This cannot exceed $10,000.

— Payment Protection Program (PPP) – ALL PPP funds must be deducted and included on your worksheet even if they have not formally been forgiven yet.

— Coronavirus Food Assistance Program (CFAP) – ALL CFAP funds must be deducted.

— Pandemic Unemployment Assistance (PUA) – ALL PUA funds must be deducted.

— Previous COVID-19 Business Relief Program funds – Any money received through the Interruption, Relief or Mitigation funds must be deducted.

— Any other CARES Act funding received must also be deducted.

How do I know my application was submitted?

After you submit your application, you will receive an email confirming the successful submission and a unique application number. Throughout the review process, you should receive multiple emails from the Wyoming Business Council. Please double check your SPAM filters to make sure you are receiving this important correspondence.

How long will it take to know if my application is approved and to receive funding?

Timing to receive funding after approval depends on a number of factors; however, most applicants should receive their funds within 21 business days from the start of their review date.

How will I hear from the State of Wyoming about my application?

Depending on the correspondence or information needed, you might hear from the Wyoming Business Council, Secretary of State or State Auditor’s Office in a number of ways:

• By email ([email protected]) to the email listed in your application – be sure to check your SPAM filter!

• By SMS text message to the cell phone # you provided in your application

• By phone if you have not responded to requests for additional information

• By phone from the State Auditor’s Office as additional verification is required

If approved, how will I receive my money?

Businesses or nonprofits that are already set up in the state Vendor Management System will receive their award via an electronic funds transfer; all other businesses/nonprofits not in the system will receive a check sent via certified mail from the State Auditor’s Office to the mailing address listed on their application.

All applicants receiving funding under any of the Wyoming Business Relief programs will have their name (or business name) and the amount of any award(s) received listed on the Wyoming State Auditor’s transparency website at wyopen.gov/wbc.

All funds received under the Wyoming Business Relief Program must be reported as taxable income on your next federal tax filing and the State Auditor’s Office will mail out appropriate tax documentation. Applicants are encouraged to work with a qualified accountant to determine how funds awarded under this program affect their tax situation; the Wyoming Business Council cannot advise you on tax or business matters.

When do these funds need to be spent, what can they be spent on and will reporting be required?

There is no requirement on when funds need to be spent and they should be used as you would typically use business income. No reporting is required; however, all award recipients are subject to audits.

Will I be audited if I receive funding?

Funds awarded under these programs are subject to random and/or targeted audits as provided in statute and program rules. Current rules may be found online at rules.wyo.gov. Knowingly making a false statement to obtain funding under these programs may require total or partial repayment of the funds and is punishable under the law, including under 18 USC 1343 by imprisonment of not more than thirty years and/or a fine of up to $1,000,000 and Wyo. Stat. Ann. 6-3-402 by imprisonment of not more than ten years and/or a fine of up to $10,000.

Are these grant awards considered taxable income?

Yes, any funds received through the Business Relief Program are considered taxable income and will need to be claimed on your 2020 tax return. The State Auditor’s Office will issue all fund recipients a 1099 Form for “Miscellaneous Income“.

If my application is denied, is there an appeal process?

Yes, applicants must first notify the Wyoming Business Council of their intent to appeal via email at [email protected] within FIVE (5) calendar days of the application denial date. 

  • After FIVE (5) calendar days the application will no longer be eligible for funding.
  • Denied applications may appeal with a typed summary of business’ activities, history, industry, etc. plus one or more of the following documentation:
  • Tax Return forms filed with the IRS; (B) Schedule C of IRS form 1040, Schedule F of IRS form 1040, any other form necessary to establish a business’ existence 
  • Documentation of EIN from IRS 
  • Failure to submit the aforementioned documentation within FIVE (5) calendar days will result in denial of the application. 
  • Any eligible business found using multiple methods (EIN and SSN) to apply for numerous awards may be denied any or all applications at the Business Council’s sole discretion. 
  • The approval or denial determination of the Business Council is final.

For the application and additional details visit the WY Business Council website at

https://www.wyobizrelief.org/

Remember, the KTLLP experienced CPAs in our Gillette Office are available to assist with any questions or concerns. Give us a call today.

October 30, 2020
| Ketel Thorstenson, LLP
KT Insights
 |

Families First Coronavirus Response Act (FFCRA) Update

As cases in our area increase the likelihood of one of your staff being impacted by the Coronavirus is inevitable.  With these increases in cases comes the need to refresh ourselves on the Families First Coronavirus Response Act (FFCRA).

The Department of Labor’s Families First Coronavirus Response Act (FFCRA) provides your staff with paid emergency sick leave and the Extended FMLA (EFMLA).  As a reminder the FFCRA affects employers with fewer than 500 employees and was implemented on April 1, 2020 and is set to expire on December 31, 2020.

Recently the Department of Labor announced some updated guidance on a few aspects of the FFCRA.

  • Reaffirmed that employees may take FFCRA leave only when work is actually available to them.  If you must close your business because of the virus and work isn’t available for your staff to perform, they do not qualify for FFCRA leave.
  • Reaffirm that employees must have their employer’s approval to take intermittent FFCRA leave.  The employer and employee should come to an agreement about the leave they are wanting to take.
  • Revise the definition of “health care provider” to include “only employees who meet the definition of that term under the Family and Medical Leave Act regulations or who are employed to provide diagnostic services, preventative services, treatment services or other services that are integrated with and necessary to the provision of patient care which, if not provided, would adversely impact patient care.”
  • Clarify that employees must provide employers with documentation as soon as possible supporting their need for FFCRA leave.  This changed from needing to provide documentation before leave is taken.  It is essential to get documentation from your employees.

To read my original article about the FFCRA leave click on the link, https://www.ktllp.cpa/families-first-coronavirus-response-act/.

October 14, 2020
| Ketel Thorstenson, LLP
KT Insights
 |

SD Small Business Grants Program Overview

The SD Governor’s Office of Economic Development will be conducting a program overview via a Zoom call tomorrow afternoon (Tuesday, October 13th at 3:00 p.m. MDT) for business owners that would like to participate. The link to this call is below.  There is a 1000 person limit.  If you are unable to attend or cannot access the call, the program overview will be recorded and available for viewing at https://covid.sd.gov/smallbusiness-healthcare-grants.aspx.

As a reminder, applications will open tomorrow for the new small business grant programs using CRF dollars.

Time: Oct 13, 2020 04:00 PM Central Time (US and Canada)

Join Zoom Meeting

https://zoom.us/j/96965283723?pwd=V3h1dG5wOHZFWVpaclNBY21VNlF0QT09

Meeting ID: 969 6528 3723

Passcode: 029603

Mobile

Call In Number: 1-346-248-7799

Meeting Id: 96965283723

October 12, 2020
| Ketel Thorstenson, LLP
KT Insights
 |

Election Year Reminder

Be careful not to support or oppose a specific candidate, or you will be in danger of losing your tax-exempt status! The IRS strictly prohibits 501(c)(3) nonprofit organizations from participating directly or indirectly in any political campaign on behalf or (or in opposition to) any candidate for elective public office.  With political issues being a heated environment, people supporting an opposing point of view are often the ones reporting you to the IRS.  Even if you do not lose your tax exempt status, the IRS may impose excise taxes.

Some examples that the IRS has found to violate the prohibition on political campaigning include:

  • inviting one political candidate to make a campaign speech at an event hosted by the organization
  • using the organization’s funds to publish materials that support (or oppose) a candidate
  • donating money from the organization to a political candidate
  • any statements by the organization’s executive director, in his or her official capacity, that support a candidate
  • criticizing or supporting a candidate on the organization’s website
  • inviting one candidate to speak at a well-publicized and well-attended event, and inviting the other candidate to speak at a lesser function.
  • inviting all candidates to speak at an event, but arranging the speaking event or choosing the questions in such a way that it is obvious the organization favors one candidate over the others
  • conducting a “get out the vote” telephone drive in a partisan manner by selecting caller responses for further follow-up based on candidates preference, and
  • using the organization’s website to link to only one candidate’s profile.

Some good news is you can continue to educate voters in a nonpartisan manner such as holding public forums or debates that don’t show bias toward any candidate, publishing voter education guides, and advocating for issues important to your organization without linking those issues to a specific candidate as long as these activities fulfill your exempt purpose. 

Remind your employees, executives, board members, and volunteers that while working in an official capacity and/or representing the organization, they should refrain from any oral or written support (including social media comments) of a specific political party or candidate.  Feel free to contact Ketel Thorstenson, LLP if you any concerns regarding political campaigning.

October 9, 2020
| Ketel Thorstenson, LLP
KT Insights
 |

Giving Feedback During a Pandemic

Providing good consistent feedback is essential for an employee’s growth and continued improvement in their career.  However, as it turns out, most supervisors don’t like to give feedback.  It can be difficult to put the right words together to tell someone they aren’t meeting our expectations and most of us don’t want to hurt their feelings, or worse, have them quit because of the feedback. 

Now throw a pandemic into the situation; tensions may already be high, staff are stressed, and worried about all the uncertainty in their lives.  But feedback shouldn’t be set aside during times like these.  Even more consistent feedback will help staff feel they are being communicated with and may help them feel less overwhelmed.  Feedback is always important and can provide a sense of normalcy for staff. 

Here are a few tips when providing feedback.

  • Look for opportunities to provide in the moment feedback.  Don’t wait until your annual review to address an issue of not meeting expectations or to let someone know they are doing a great job, do it right away. 
  • Focus on the behavior not the individual.  Don’t make assumptions about the staff member and why these behaviors are happening.  Have a conversation about the behavior versus lecturing them about what isn’t being done correctly.
  • Provide specifics.  This works for both constructive and positive feedback.  If I don’t know what I did well, I don’t know what to continue.  Likewise, if I don’t know what I didn’t do well, I don’t know what to change.
  • If you are limiting your in-person interactions with co-workers, don’t rely solely on email, pick up the phone or, even better, schedule a virtual meeting.  These more personal interactions will help staff feel connected and valued.
  • If you have staff working from home, schedule a regular “virtual-touch” base meeting in order to stay connected.  During these meetings provide feedback and let the employee know how they are doing.
  • Remember to have some compassion.  Your employees are trying to navigate the new way of doing things and may need a little more assistance or time to get things right.  This doesn’t mean you need to throw your expectations out the window; instead let the employee know what your expectations are and then help them figure out the best way to achieve it.

September 25, 2020
| Ketel Thorstenson, LLP
KT Insights
 |

Governor Noem Outlines Framework for $400 Million in CARES Act Funding for South Dakota Small Businesses

From SD State News at https://news.sd.gov/Default.aspx

PIERRE, S.D. – Governor Kristi Noem laid out a framework for up to $400 million in Coronavirus Relief Funds (CRF) to assist South Dakota’s small businesses negatively impacted by the COVID-19 pandemic.

“South Dakota is in a good spot as we rebound from COVID-19, but some of our small businesses were still hurt by this pandemic,” said Governor Noem. “These folks are the lifeblood of our communities and economy. When I asked folks to adjust their way of life to help us flatten the curve, South Dakotans exercised their personal responsibility and responded. That adjustment significantly impacted the day-to-day operations, customer traffic, and supply chains of a number of small business owners across our state. It’s my hope that this proposal will help folks stay open and overcome the unprecedented times we’ve faced these last several months. I’m looking forward to discussing it with the legislature.”

Under Governor Noem’s proposal, businesses would qualify for this grant if they are located in South Dakota, have at least $50,000 in gross revenue in 2019, and have had a reduction in business of at least 25% between March and May as a result of COVID-19. The calculation for “reduction in business” can be found here.

The proposed application period for the program would open on October 12 and close on October 23. Grants would be rewarded once all applications are received. Following the initial reward period, a second allocation of funds would be considered if additional funds are still available. Under current federal law, all funds must be distributed by December 30, 2020.  Grants would be awarded up to $100,000 per qualifying business.

September 22, 2020
| Ketel Thorstenson, LLP
KT Insights
 |

Virtual Career Fair Tips

It’s that time of year again, fall recruitment!  While we will miss seeing everyone on campus, we are looking forward to all the virtual career fairs we will be attending.  In many ways the virtual career fair will mirror those of the traditional in-person events. You’ll still want to do your research on the companies, follow-up with those you are most interested in, and apply via your school’s website for any open positions.  However, there are a few things to keep in mind when attending a virtual career fair.

  1. Test Your Technology.  If you can, test your technology beforehand.  You want to make sure you don’t miss-out on the event.  Log into the system and make sure you understand how it all works.
  2. Dress Professionally.  Even though you won’t be in person you’ll still want to dress like you are.  It’s a great first impression and can give you the confidence you’ll need to stand out.
  3. Find a Quiet Spot.  Eliminating distractions and extra background noise is key.  It’ll keep you focused, and you won’t stand out for the wrong reasons. 
  4. Have a Neutral Background.  Ensure what is behind you is appropriate.  Pick a blank wall or at least remove some of the clutter from behind you.  You want the recruiter to be focus on you and not what’s behind you.
  5. Arrive on Time.  Don’t show up late to a group session or your individual sessions.  If you aren’t going to make it reach out to the recruiter beforehand to reschedule.
  6. Stay Focused.  Staying focused on a virtual career fair can be tough.  To help maintain focus remove distractions, shut off any notifications on your computer/phone that might distract you, and take notes in order to stay engaged.
  7. Ask Questions.  There will be opportunities to ask questions.  It may seem odd doing this virtually but ask anyway.  The recruiters will remember those who spoke up.
September 8, 2020
| Ketel Thorstenson, LLP
KT Insights
 |

Mental Health and Your Organization

The daily news about and change due to COVID-19 has and will continue to be stressful for everyone. Anxiety about a new disease, the health and safety of our families, and the uncertainty of what could happen is overwhelming.  Adding to this the increased feeling of separation and loneliness due to social distancing.  An already stressful situation can become even more overwhelming.  According to a Center for Disease Control and Prevention survey conducted at the end of June 2020 31% of U.S. adults reported struggling with anxiety and depression symptoms.  This number is expected to increase as we enter into fall.

As employers there are things you can do to help your staff manage their mental health.

  • Communicate, communicate, communicate.  One of the main causes of anxiety among your employees is uncertainty.  Not knowing what is going to happen to them or their family can cause great stress.  To help staff manage this anxiety an organization should provide solid consistent communication. 

    If you are going to be making changing, communicate this as soon as you can in order to give your staff time to adjust to the change.  Change is tough but having the opportunity to think it through and understand it before it is implemented can ease the pain.
  • Keep an eye out for burnout.  Your staff are overloaded by all the things they have to deal with, health concerns, workload, family issues, and constant fear.  So, give them the opportunity to disconnect from work.  Encourage vacations where they can unplug, give them time to take a break during the day to walk around the block, and encourage them to connect with their family and friends.

    Also make sure you and your supervisors are aware of the signs of burnout: irritability, change in mood, inability to complete tasks or concentrate, forgetting important details or tasks, and cynicism.
  • Make time to talk with your staff.  Go beyond the everyday business conversations, ask them how things are going.  Encourage them to be honest with you on how they are feeling, do they feel overwhelmed or stressed?  Let them know they aren’t alone and that many are feeling anxious and that it is ok to ask for help.

    Avoid the drive-by conversations.  Make sure you have time to talk, schedule it into your day and try to talk with each staff member on a regular basis.
  • Be compassionate and understanding.  One major stressor this fall will be the re-start of the school year.  Parents will need help making the adjustment to their school’s back to school plan.  They’ll need to figure out how they are going to juggle virtual learning, revised school weeks, and their job.  It is going to take time, so when you can, be flexible.

  • Be the example.  If you don’t take care of yourself, your staff aren’t going to feel they can take care of themselves.  When you can, take that vacation, work that flexible schedule, and ask for help.

  • Provide them with resources.  If you have an Employee Assistance Program (EAP) make sure staff know how to access it.  Make sure staff are aware of what mental health services are covered under your health insurance or other insurances. Both the U.S. Department of Health and Human Services and the Center for Disease Control and Prevention have a wealth of mental health resources.

Taking care of your employees (and yourself) is important, find ways to help them stay healthy both physically and mentally.  We’ll get through this together.

September 3, 2020
| Ketel Thorstenson, LLP