“Qualified disaster” declaration allowing employer-sponsored charities to provide relief (North Carolina)

Employer-sponsored private foundations and donor-advised funds may provide assistance to the sponsoring employer’s employees and their family members.

Employer-sponsored private foundations and donor-advised funds may provide assistance

The IRS issued a release announcing tax relief for taxpayers in North Carolina affected by Tropical Storm Fred. This follows the recent disaster declaration for individual assistance issued by the Federal Emergency Management Agency (FEMA).

Read the IRS release—NC-2021-01 (September 10, 2021)

FEMA’s disaster declaration also allows certain employer-sponsored charities to provide disaster relief programs for affected employees. In particular, employer-sponsored private foundations and donor-advised funds may provide assistance to the sponsoring employer’s employees and their family members as long as the individuals receiving aid are affected by a qualified disaster and certain safeguards are in place so that such assistance is serving charitable purposes. Read Publication 3833 [PDF 340 KB]. For additional information regarding how employers can assist employees affected by the disaster, read a July 2021 report [PDF 172 KB] prepared by KPMG LLP: What’s News in Tax: Employers Helping Employees—Disaster Relief

The tax relief provided by the IRS to affected taxpayers postpones until December 15, 2021, various tax filing and payment deadlines that occurred starting on August 16, 2021, and before December 15, 2021—including for affected tax-exempt organizations, reporting on a calendar-year basis, that had a valid extension due to run out on December 15, 2021. Read TaxNewsFlash


For more information, contact a tax professional with KPMG’s Washington National Tax practice:

Ruth Madrigal | +1 202 533 8817 | ruthmadrigal@kpmg.com

Preston Quesenberry | +1 202 533 3985 | pquesenberry@kpmg.com

Carrie Garber Siegrist | +1 202 533 3056 | carriesiegrist@kpmg.com