Legal Affairs Discussion

Q&A about legal affairs impact of COVID-19 with Toby Eveland of Saul Ewing Arnstein & Lehr; Stanton Jones of Arnold & Porter; Micah Kamrass of Manley Burke; Jennifer Riso of Cokinos | Young; and Judson Horras, NIC President and CEO

Key Points:

It is key to educate and help chapters stay informed of applicable shelter in place and social distancing orders.
One important issue is monitoring for consistent application of public health orders/guidance across campuses. The government does have the authority to restrict constitutional rights, such as the freedom of association, in the context of a national emergency, but this authority is not limitless. New university policies and guidance should be neutral with respect to different types of organizations.
We should anticipate that neutral policies, consistently applied, will receive great deference from a court. It is important to note that private schools will have broader flexibility to implement policies they see fit. Chapter officers need to be cognizant of both civil and criminal liability if these policies are violated.
Virtual recruitment and meetings likely comply with the existing orders. Planning for start and stop scenarios is key as there could be more flareups of the virus.
Regarding Force Majeure provisions, the language of the contract is key. Be sure to comply with any required notice provision.
Houses with food service should take a close look at how that is addressed in leases.
Chapters should have policies and protocols in place for how to address a positive diagnosis within its membership, especially if that person lives in a chapter facility.
If your entity is involved in pending litigation, you should be pursuing early resolution.

IFC Video Conference Background

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Student Life Discussion

Q&A about impact of COVID-19 on student life and fraternity community with Chris Graham, Director of Fraternity and Sorority Life, Florida State; Jenny Loeffelman, Assistant Vice President for Student and Campus Life, Cornell University; Jeremiah Shinn, Vice President of Student Affairs, LSU; and Judson Horras, NIC President and CEO

Key Points:

Major changes are coming for Fraternity/Sorority Life. Fraternities need to have hard conversations going into fall.
How can fraternities support campuses as they deal with sick students? Connections with health departments and residence life will become critical.
Modify protocols from past situations (Example: Mumps cases).
Prepare to coach students who are unwilling to follow protocols.

The CARES Act: Income Tax Provisions for Businesses

Among its many provisions designed to stimulate the economy and provide relief to businesses, the CARES Act includes several tax provisions designed to do so through the US Internal Revenue Code. These tax provisions relate to industry-specific excise taxes, payroll taxes, income taxes and credits, charitable organizations, and tax-deferred retirement savings.

This Advisory focuses on the following income tax provisions in the CARES Act that impact businesses:

Businesses now generally can carry back a net operating loss (NOL) generated in 2018, 2019, or 2020 for up to five years. In addition, the annual limitation on the deduction of an NOL of 80 percent of taxable income is suspended until 2021. The CARES Act also suspends the limitation for noncorporate taxpayers on the deductibility of excess business losses until 2021.
The limitation on interest deduction, which otherwise permits businesses to deduct interest expense only up to 30 percent of adjusted taxable income, has been generally increased to 50 percent for 2019 and 2020.
Tax credits related to the repealed corporate alternative minimum tax (AMT) now can be refunded entirely in either 2018 or 2019, instead of over four years through 2021.
A technical error in the Tax Cuts & Jobs Act of 2017 (TCJA) has been fixed, making the cost of real property improvements eligible for immediate expensing under the “bonus” depreciation rules beginning in 2018.

We expect that most businesses will find these changes beneficial. However, as discussed in more detail below, there may be unintended tax consequences of carrying back NOLs. Legal questions also could arise from carrying back NOLs of recently acquired corporations.

Technology & Virtual Experiences Discussion

Q&A about the impact of COVID-19 on the fraternal community and how technology can be used for virtual experiences with Mike Bourassa of WBT Systems; Holly Rider-Milkovich of EverFi; Chris Woods of Plaid; and Judson Horras, NIC President and CEO

Key Points:

Recognize that students are more comfortable with technology than organizations are.
Provide tools for chapters to continue operations, philanthropy and service.
Shorter is better, students will not be willing to sit through long virtual experiences.
Find ways to retain personal touch or students won’t connect well.

How to Prepare Attendees for a Virtual Conference—or Other Online Learning Options

The modus operandi these days is making the best of a bad situation. Many associations are containing the financial ripple effects of cancelled conferences by converting them into virtual conferences and/or other online learning programs. Even within a short timeframe, they’re managing to register and prepare attendees for a virtual conference.

Shifting to a virtual conference makes the most sense for everyone.

Preparing to apply for Payroll Protection Program (PPP)

To be prepared for Payroll Protection Program (PPP), please have the following ready and available:

PPP application form 2483 (blank form below) version 4/20 complete in its entirety by an authorized representative of the company, include addendum if requested (worksheet below);
Additional PPP info form – should add up to amount requested, your best guess as to how funds will be used (worksheet below); and
Supporting payroll information that supports the amount requested. Further guidance on payroll calculations can be found at the Treasury web

Documents to support their payroll/loan amount request must be attached. Supporting payroll documentation includes, but is not limited to:

2019 W3
2019 IRS quarterly 940, 941 or 944 payroll tax reports
2019 business tax return
2019 personal tax return (if the business files as a sole proprietorship or single entity LLC)
Third party payroll processing documents

WORKSHEET BORROWER APPLICATION FORM

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Step-by-Step: Emergency Injury Disaster Loan (EIDL) application

Michael Wilson, NIC chief financial officer, walks viewers through the online application for EIDL

EIDL APPLICATION

Collegiate Athletics & Campus Life Discussion

April 3, 2020—Q&A about impact of COVID-19 on collegiate athletics and campus life with Mary Ellen Gillespie, Deputy Director, Women’s Basketball Coaches Association and Judson Horras, NIC President and CEO

Key Points:

Expect delays and changes, particularly with football season and tailgate culture.
How can fraternities get a seat at the table to reiterate the importance of our role as a retention tool for the athletics department?

The CARES Act: Economic Injury Disaster Loan (EIDL) Program vs. Paycheck Protection Program (P3)

On Friday, March 27, the President signed and enacted into law the Federal stimulus bill in response to the COVID-19 virus, known as the CARES Act. Many key provisions in the Act benefit small businesses and nonprofit agencies, including the small business loan programs administered through the U.S. Small Business Administration (SBA), like the Economic Injury Disaster Loan (EIDL) Program, and those directly administered through the CARES Act. known as the Paycheck Protection Program (P3). We created a comparison of these programs.

Continue to comparison of programs:

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