Nonprofit Employee Retention Credit

Nonprofit Employee Retention Credit

Nonprofit Employee Retention Credit (ERC)

Assessment and Filing Assistance

Nonprofits that retained their workforce and whose revenues are significantly impacted by COVID-19 may qualify for a tax refund of $26,000 per employee. Contact First Nonprofit to help determine your organization's eligibility for this refund before it's too late! We have the expertise to complete the filing on your behalf.

Who qualifies?

Employers whose business operations were partially or fully suspended due to government orders or whose revenues significantly decreased yet they kept their employees on the payroll.

What is the benefit?

Benefit amount equals 50% of qualified wages paid, capped at $5,000 per employee for 2020 and $21,000 per employee for 2021.


Working with FNP has been a great experience. We were contacted by FNP to facilitate the Employee Retention Credit and to our surprise we are getting a substantial refund from the IRS. This was such an easy process and cannot thank Cheryl Jones enough for her knowledge and expertise in this matter. Greatly appreciated!

Colleen Zanoline
Bookkeeper/Human Resources
Extended Child Care Coalition


I worked with FNP on getting my ERC, it was simple and easy. All I had to do was send over some paperwork from my payroll company and FNP did the rest. Now, we have already received our payment from the IRS.

Kia B.


Thank you for your assistance. This is a game changer for our organization and the students we serve.

Cheryl Ann Welsh
Operations Manager



Frequently Asked Questions:


Do we still have time to apply for the Nonprofit Employee Retention Tax Credit?

Yes.  The statute of limitations for the 2020 Nonprofit Employee Retention Tax Credit closes April 15, 2024. The statute of limitations for the 2021 Nonprofit Employee Retention Tax Credit does not close until April 15, 2025.

How long does it take for the IRS to provide a refund after filing?

The IRS is working diligently to process and anecdotal information from the field indicates that it can take anywhere from 6-12 months to receive a refund after filing.

Does the Nonprofit Employee Retention Tax Credit have to be paid back?

No. The Nonprofit Employee Retention Tax Credit is a fully refundable tax credit claimed first against employment taxes.

My organization received a large PPP loan. Will that impact the refund calculation?

You can receive both PPP loan(s) and the Nonprofit Employee Retention Credit, but you may not include wages funded by PPP in the Nonprofit Employee Retention Credit calculation. Remember that PPP loans only apply to a limited period of time and the Nonprofit Employee Retention Credit eligibility periods are longer.

Some recoverable credits we’ve helped file so far include:

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Visually Impaired Preschool Services has been a client of First Non-Profit since it was first offered as a benefit of VisionServe Alliance. We completed a thorough evaluation of cash savings to our agency before taking advantage of this wonderful benefit and it has been a very wise decision. Our experience with the processes from accounting to claims have been professional, expeditious and easy.

Visually Impaired Preschool Services, Louisville, KY

The Ensight Skills Center has enjoyed working with First Nonprofit for several years. We are enrolled in their Unemployment Savings Program and although we have not required a lot of intervention, there have been a few times. I know others have dealt with the same problem of unemployment fraud over the last year and in our case, a call to First Nonprofit (they actually answer their phones) cleared up the issue. They also sent us a letter to send to all our employees telling them what they needed to do to prevent this in the future and protect themselves. What a relief! Over the years if I have questions or concerns, they are happy to listen, advise and help if they can. Another BIG advantage of using First Nonprofit is that all the money that is paid into the Unemployment Savings Program lives on my balance sheet as an asset. The money continues to be Ensight’s not the governments. First Nonprofit has certainly given me peace of mind.

Ensight Skills Center, Inc, Fort Collins, CO

In addition to their money-saving purpose on behalf of nonprofit organizations like AHS, First Nonprofit’s Nonprofit Unemployment Fund streamlines the information we need to efficiently manage unemployment claims. Our relationship with NU Fund gave us access to such things as advice on planning for what’s ahead and how to analyze cost scenarios when unexpected events occurred. Both experiences were very helpful.

Asian Health Services, Oakland, CA

We have had a great experience with FNP. During Covid, when there was the chance that reimbursable nonprofits would have to pay 50% of the unemployment costs, FNP went to bat for us. We would receive weekly information on the Unemployment claim and how they were working to reduce the costs to reimbursable nonprofits. They have a great service also working with [our claims administrator] to make sure all the paperwork is completed correctly for any unemployment claim.

ACLA Libraries, Pittsburgh, PA

PORT Health Services has had a great experience with the Unemployment Savings Program offered through First Nonprofit. Throughout the years we have been involved in the program, we have increased our reserve account significantly through this program and find the reporting we receive both timely and useful. We look forward to our continued involvement with this program and our connection with First Nonprofit for many years to come.

PORT Health Services, Greenville, NC

Job One was spending a lot of money on unemployment. Our insurance broker, Mark Simcosky, recommended that we switch over to First Nonprofit. We did just that! This switch has been a huge savings for us! This switch saved us over $10,000 in the first year. Their customer service is Superior! Any time we have a question, we get a response very quickly. Any time we send them a report and they have a question; they call rather than just assuming. They were very responsive during COVID, even when they were in crisis mode their selves. They also were always there when we needed during COVID and very helpful! We would 1,000% recommend First Nonprofit to anybody that could benefit from it!

Job One, Independence, MO

My experience with FNP has always been positive. Every time I have had to contact them, I’m always put in contact with a friendly and knowledgeable person. If something is missing from our account, they reach out to us to request it. It’s nice to work with a company that makes sure our account is current. I would recommend them to any nonprofit looking to reduce their unemployment insurance costs.

Family Counseling Center, Gloversville, NY

We’ve saved tens of thousands of dollars PER YEAR by changing to become a reimbursing employer, freeing funds for much needed capital investment. FNP has been a valued partner in this process, providing assurance that we have stopgap coverage for extraordinary claims and keeping claims response painless and simple. It’s a huge Win/Win!

NC UM Camp & Retreat Center, Garner, NC