Entries with Author: Shannen Camarena

Nonprofits face unique challenges when it comes to staffing. Limited or tight budgets, lean teams, and high-impact missions often mean employees are stretched thin. Despite these challenges, these dedicated individuals consistently invest their time, effort, and passion into driving meaningful change.

Yet, even with such dedication, nonprofit leaders can overlook one crucial aspect of maintaining a productive and motivated workforce—employee appreciation. Here is why it matters and how it can make a significant impact to your organization.

The Ripple Effect of Employee Appreciation

The importance of employee appreciation is far-reaching, and the evidence backs it up. According to the American Psychological Association, when employees receive appreciation at work, 93% feel valued and motivated to give their best, and 88% report being engaged. Organizations with a strong appreciation culture experience higher employee engagement, better retention rates, and enhanced overall performance. For nonprofits, where budgets and recruitment resources are often limited, showing employees that they are valued can be a game-changer.

Some benefits include:

  • Boosted Morale: Recognizing the hard work and impact of an employee’s efforts significantly boosts morale, especially in nonprofits where challenges are plenty and financial rewards may not always reflect the effort.
  • Improved Retention Rates: Nonprofits cannot always compete with corporate salaries, but appreciation can bridge the gap. Feeling valued is often cited as a top reason employees remain with an organization.
  • Enhanced Productivity: Employees who feel appreciated tend to go above and beyond. Knowing their contributions matter motivates them to continue making a difference.
  • Strengthened Organizational Culture: Building a culture of gratitude fosters a positive workplace environment, promoting teamwork and mutual respect among staff members.

Easy Ways to Show Your Nonprofit Team You Care

Appreciation does not have to be expensive; it’s about making employees feel seen and valued. Here are ways to incorporate employee appreciation into your nonprofit culture:

1. Celebrate Milestones: Recognize employee work anniversaries, birthdays, or major project achievements. A handwritten note, small gathering, or public acknowledgment can go a long way.

2. Offer Opportunities for Growth: Provide access to training programs, conferences, or mentorship opportunities. Investing in the growth of your employees shows that you value their future as much as their present efforts.

3. Encourage Transparent Communication: Sometimes, the simplest way to appreciate an employee is to openly acknowledge their contribution in meetings or reports. A quick “thank you for your hard work” can be influential.

4. Introduce Flexible Benefits: Work-from-home perks, mental health days, or schedule flexibility can show your staff that you value their well-being just as much as their work.

5. Recognize Their Impact: Tie their efforts directly to your nonprofit’s mission. For example, instead of saying, “Great work on the fundraiser,” highlight how their work helped feed 500 families in the community.

How UST HR Workplace Can Help

Building a culture of appreciation takes consistency and the right tools. With UST HR Workplace, nonprofit managers and HR professionals have everything they need to streamline employee engagement and recognition. This cloud-based platform offers tools, templates, and trainings designed specifically for nonprofits to create a safe, compliant, and productive workplace. Strong employee appreciation leads to a more connected, motivated, and efficient nonprofit staff.

Sign up for UST HR Workplace’s Free 60-Day Trial and unlock the tools you need to build a culture of gratitude that keeps your team engaged and your impact growing.

Show your workforce they are valued. It starts with you!

Source:

https://front.com/blog/thanks-the-importance-of-appreciation-and-gratitude-in-the-workplace

Question: We’d like to start giving cost of living raises to employees on their anniversary dates. What’s the best way to calculate these pay increases?

Answer: When the information is available, employers typically use the consumer price index (CPI) to calculate cost of living increases. It measures the change in prices consumers pay for goods and services such as housing, food, and medical care. Most heavily populated cities have their own CPI. 

Most cities often see a small increase each year, but it is important to note that the CPI can also remain the same or decrease. It’s not guaranteed a cost of living increase will occur based on the CPI. You can find the CPI for your urban area by searching the Bureau of Labor Statistics website. 

If you tie salary increases to the CPI, your policy should neither guarantee annual raises nor decrease compensation when the CPI decreases. If you choose to guarantee a raise each year, you could have a minimal percentage increase that applies in those years in which the CPI does not increase. However, instead you may consider basing pay increases on merit, market factors, and profitability of the company.

This Q&A does not constitute legal advice and does not address state or local law.

This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.

Nonprofit organizations improve communities by providing impactful services, including everything from educating, sheltering, healing, nurturing and so much more. Nearly everyone in the United States has benefited from a nonprofit organization in one way or another. The roughly 1.3 million nonprofit organizations in the U.S. need assistance to operate and help as many people as possible.

Internship programs offer numerous benefits to nonprofit organizations. Interns provide much-needed assistance, unique skill sets and fresh ideas. Internships can also lead to new hires that help the organization operate and grow for years to come. Even interns who do not become full-time employees often remain proponents of the organization.

There’s no denying that nonprofit internships are valuable, but finding the right interns can be a challenge. Discover how you can recruit and hire interns who will have a positive impact on your organization through their hard work and unique skills:

Where to Locate Your Nonprofit Interns

Nonprofit internships offer many benefits to the organization, as well as to the interns themselves. However, locating the right recruits may feel like finding a needle in a haystack at times. The following are several places to find quality recruits, so you can spend less time searching and more time offering your much-needed services.

  • College Career Offices: College students make excellent interns, as they’re often eager to learn about the industry they study. University career centers often have partnerships with businesses and nonprofit organizations and counselors can connect interested students with your nonprofit. This option often results in quality interns, as the students enter the career office seeking such opportunities.
  • Online Platforms: Online job listings are becoming some of the most popular places for potential interns and employees to find work. Sites such as SimplyHired and Indeed allow you to post your internship opportunity and review candidates online. Many online job platforms offer special rates or free listings to registered nonprofits.
  • Social Media: A strong social media presence is essential to the success of a nonprofit organization. It’s also one of the best ways to reach Gen Z, millennials, and older demographics. Use Instagram, Facebook, TikTok and other social media outlets to launch campaigns and sponsored posts advertising your nonprofit organization internships.
  • Word of Mouth: Word of mouth is one of the easiest and most effective ways to get the news out about your available nonprofit organization internships. Let current employees and your community know about available opportunities. Your organization’s positive reputation will help the word travel fast. Someone on your current team may already have a friend or acquaintance in mind.

Tips for Hiring Interns

How you hire interns can have a significant impact on their experience at your nonprofit organization. The following are a few effective tips to help ensure your potential interns understand what the position entails and how the internship can be mutually beneficial.

  • Explain the Internship Requirements Thoroughly: A key factor in finding the right interns and better ensuring they meet your expectations is being transparent. Interns should fully understand the responsibilities of the position, their expected schedule, and how you’ll measure their performance. Many interns are juggling internships with school and or jobs. It’s important for them and the organization to know if the role is something they can handle. Now is also the time to explain what an ideal candidate looks like and the specific skills and characteristics you expect the intern to have.
  • Establish a Consistent Screening Process: A screening process narrows your list of potential candidates which helps you avoid hiring individuals who do not fit your organization’s needs. Your screening process may include reviewing the intern’s application, checking references, verifying their skillset, performing an online or phone interview, performing a background check or any other steps that are more specific to your nonprofit.
  • Ensure Each Intern Has a Supervisor: Interns are typically seeking work experience or looking to fulfill requirements for a specific qualification. Assigning a supervisor to new interns throughout the hiring process and beyond will help ensure they understand their responsibilities. The supervisor is also the first person an intern can consult with questions or concerns.
    • Emphasize the Organization’s Impact: Individuals seeking nonprofit internships are often looking for meaningful work that has a positive societal impact. Ensure that potential interns understand the cause the organization supports, how they’re increasing awareness, and how the intern’s position will help the organization achieve its goals.
      • Reflect and Offer Feedback: Interns are often eager to learn and advance in their careers. Establish time for interns to discuss the position and their experience as new recruits with their supervisors. While this may include reflecting on their goals or feelings about the organization, it’s also a time for interns to provide feedback. Nonprofit internships are designed to benefit the intern and the organization. Interns can offer valuable insight into the pros and cons of the organization’s operations, scheduling demands, the recruitment process and more.
        • Remain Adaptive: Being able to adapt is essential to an organization’s success. Remember that not all interns will become full-time employees and that your internship program may change as your organization grows or develops. Keep an open mind when assessing potential interns, as some may prove to be greater assets than their resumes can express. An intern you thought was an ideal hire may not work out, while a less-qualified intern exceeds your expectations.

          UST offers virtual HR solutions for organizations that don’t have full-time HR departments. We provide a complete range of HR resources to resolve HR issues quickly and smoothly. Our solutions support the unique needs of nonprofits, so you can stop worrying about HR concerns and focus on extending your organization’s positive impact.

          For more insight into human resource best practices for nonprofits, join our newsletter!

          Sources:

          https://www.volgistics.com/blog/how-to-recruit-nonprofit-interns

          https://www.councilofnonprofits.org/about-americas-nonprofits/nonprofit-impact-communities

          Every February, Black History Month serves as a powerful reminder of the profound contributions African Americans have made to history, culture, and society. For nonprofits, this observance presents an important opportunity to both honor Black history and actively promote diversity and inclusion within their own organizations.

          But how can nonprofit leaders go beyond surface-level acknowledgment to make a lasting impact? Here, we’ll explore meaningful ways nonprofits can celebrate Black History Month while building an inclusive workplace that aligns with their values and mission.

          Black Generosity and Charitable Giving

          Did you know? Despite the vast wealth gap created by systemic inequality, Black Americans give the largest share of their wealth to charity compared to all other racial or economic groups in the United States. Nearly two-thirds of African American households donate to organizations and causes, contributing an astounding $11 billion each year.

          A study conducted by the Urban Institute revealed a remarkable finding about Black philanthropy. Since 2010, Black families have contributed the largest proportion of their wealth — including savings, used cars, land, and investment accounts — to charities across all racial or ethnic groups in the dataset.

          What’s even more inspiring is that 28% of Black donors report household incomes below $50,000 a year, yet they are contributing a higher proportion of their income to charity than any other racial group. This demonstrates the extraordinary culture of giving within Black communities, often rooted in values of mutual aid, collective growth, and community solidarity.

          For nonprofits, understanding this spirit of philanthropy means building genuine, meaningful connections with the Black community. Recognizing and celebrating this generosity during Black History Month can strengthen trust between organizations and constituents while advancing shared missions.

          How Nonprofits Can Celebrate Black History Month

          1. Highlight Historical Contributions: Share stories of Black leaders or organizations that have had a profound impact on your nonprofit’s field or mission. Use internal newsletters, team meetings, or social media to educate and inspire your staff, stakeholders, and community.

          2. Support Black-Owned Businesses & Nonprofits: Use this time to uplift Black-owned businesses or partner with local, Black-led nonprofits. Whether you’re seeking vendors, collaborators, or event speakers, this is an impactful way to actively support the community.

          3. Host Educational Workshops or Panels: Invite speakers, historians, or authors to lead workshops or discussions on Black history, systemic inequality, or contemporary issues. Providing learning opportunities emphasizes your commitment to fostering understanding among staff and stakeholders.

          4. Create a Volunteering Initiative: Organize volunteer drives for staff to support Black-led community organizations or causes tackling racial inequalities. This not only strengthens ties with your community but also demonstrates your organization’s dedication to long-term equity.

          5. Review & Advance DEI Initiatives: Take the time to examine your nonprofit’s Diversity, Equity, and Inclusion (DEI) strategies. Use Black History Month as a catalyst to revisit policies, identify gaps, and ensure your organization is building a welcoming and inclusive workplace for all employees.

          As nonprofit leaders, it’s crucial to serve diverse communities, beginning with fostering awareness, respect, and representation within your organization. Celebrating Black History Month goes beyond honoring the legacy of Black leaders, innovators, and changemakers; it also enhances your inclusivity initiatives and boosts staff engagement. When your team sees that your nonprofit prioritizes equity and values diverse contributions, it fosters a stronger workplace culture, greater employee satisfaction, and a deeper connection to your mission.

          Navigating the complexities of today’s HR landscape to create an equitable workplace can be challenging. That’s where UST HR Workplace comes in. This cloud-based platform is specifically designed for nonprofit employers, offering tools, templates, and training to cultivate safe, productive, and compliant environments. With UST HR Workplace, your organization can concentrate on hiring and retaining top talent while minimizing liability risks.

          Discover how UST HR Workplace can empower your team to stay compliant and productive. Sign up for a FREE 60-day trial today and take the first step towards a stronger, more inclusive workplace culture!

           *Recent executive orders from the Trump administration have significantly impacted nonprofits engaged in DEI initiatives, creating new challenges and uncertainties for these organizations. We stand with nonprofits engaged in all aspects of community and social service and our mission is to support your organization with HR tools and money-savings unemployment solutions to help mitigate some of the uncertainty. 

          Source

          https://www.urban.org/urban-wire/despite-racial-wealth-gap-black-philanthropy-strong

          https://www.tides.org/blog/five-facts-to-know-about-black-philanthropy-strong

          Question: What is natural hairstyle discrimination?

          Answer: Natural hairstyle discrimination occurs when natural or protective hairstyles (most often worn by Black women) are prohibited or are the basis of different or unfavorable treatment. That sounds a bit technical, but what it usually looks like in practice is dress codes that prohibit corn rows, locs, or afros, and hiring managers rejecting candidates with natural hair because they don’t have a “professional” look about them.

          Some states have made natural hairstyle discrimination illegal by amending their employment discrimination laws to specifically define race as including traits associated with race, including hair texture and protective hairstyles. Protective hairstyles include (but aren’t limited to) afros, bantu knots, curls, braids, locs, and twists.

          In states that have made natural hair discrimination illegal, employees have legal protections so that they don’t have to do something special or difficult with their hair (such as straighten it) just to come to work. It also means they don’t have to change this part of their racial identity for work. Ideally, they don’t have to worry about not being hired, being demoted, or being considered unprofessional because they wear a natural or protective hairstyle.

          Whether or not you operate in a state that has made natural hairstyle discrimination illegal, we strongly recommend that you allow and encourage employees to wear hairstyles that work for them, whether that’s because they are easy, protective, or part of how they identify themselves.

          This Q&A does not constitute legal advice and does not address state or local law.

          This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.

          Many nonprofits report that some of their strongest leaders are those who were “grown within” their organization. This internal leadership development, however, generally doesn’t happen by accident.  Many of the most successful nonprofits have built their own roadmap for strategic leadership development. 

          By identifying the rising stars within your organization, you encourage team members to build new skills – both within their current role and by cross-training in other functions. This proactive approach to development:

          • promotes growth within the individual’s role
          • boosts team morale
          • helps insulate your organization against the impact of employee turnover
          • builds a stronger team to help better meet future nonprofit goals

           How to find your nonprofit’s future leaders

          As a leader within your organization, you’re most likely juggling multiple responsibilities. That’s why it’s important to share the job of “leadership talent scout” with other senior team members.

          Consider adding a line item to senior staff meetings encouraging these leaders to highlight ways their direct reports or other staff members have recently stepped up. Managers with direct day-to-day staff interaction often value the opportunity to sing the praises of their team members.

          This addition to your meetings can be a simple way to identify future leaders. Some staff members may shine in situations where they can jump in and tackle an urgent situation. Introverted team members, on the other hand, may stand out because their dependable advice and calm suggestions paint them as a co-worker others turn to with questions. Both types of future leaders can be invaluable.

          Be sure to keep track of the staff members making these extra mile contributions – either in your own notes or by asking that they be included in meeting notes. Afterward, consider sending a short email to the individual thanking them for going above and beyond. This type of praise costs your organization nothing but is often highly valued by the staff member you recognized.

          Over the course of a few senior team meetings, you’ll likely see a few names that consistently earn accolades from their direct supervisors. Consider involving these individuals in future leadership development efforts.

          UST Workforce Solutions offers a complimentary trial to UST HR Workplace – a full suite of tools powered by Mineral that can give you additional ideas for identifying future leaders. Start your free 60-day trial to find helpful articles, templates, and checklists to help your organization grow tomorrow’s leaders.

          Building strategic leadership opportunities on a nonprofit budget

          Plotting a roadmap for your organization’s leadership development doesn’t require a significant budget. Many of the best leadership training opportunities can be incorporated at little or no cost by proactively engaging key individuals in challenging opportunities.

          • Build growth into team member reviews through stretch goals. A staff member could be challenged to document a current process and propose ways to streamline the work or handle it more consistently. These types of hands-on opportunities can help the individual grow in their understanding of “how” and “why” your nonprofit has certain processes, while simultaneously helping to lighten the load for the rest of the team.
          • Pair newer team members with experienced staff as mentors. This relationship can take place informally through regular meetings or informal lunches. Setting up shadowing opportunities on certain projects may provide important education for team members who may be considered for upcoming management opportunities.
          • Assign team members to cross-functional projects. An individual who excels in front-line customer interactions may benefit from joining the team working on an upcoming fundraising project. This cross-team approach would help staff members gain a more well-rounded perspective, while potentially also yielding breakthrough project ideas due to varied team backgrounds.
          • Encourage various team members to facilitate staff meetings or team-building exercises. These types of tasks may seem easy to individuals who have never been in supervisory or management positions because they don’t always see the work that happens before and after a meeting or team-building event.  Working with future leaders to show them how to prepare for a meeting, guide a team through an agenda, and follow up afterward can be an eye-opening experience.
          • Invite selected team members to participate in certain board retreat sessions focused on leadership development. The individual gains a higher-level strategic view of your organization’s goals and challenges. At the same time, they’ll likely feel a renewed sense of commitment to your nonprofit as they see future initiatives come together. Senior leadership and board members may also benefit from the insights a future leader may bring to the discussion.

          As your future leaders make their way through your organization’s leadership development roadmap, senior managers or supervisors should be encouraged to delegate smaller tasks to these individuals and monitor their performance. Ideally, you want to see them taking initiative on these responsibilities, set up a plan, project a positive attitude toward the team members they’re working with, and clearly communicate with the team and other stakeholders.

          Once your leaders of tomorrow master lower-level projects, they can then step up to more significant responsibilities. In recognition of a team member’s growing leadership, many nonprofit organizations award these future leaders a “senior” title, which helps build a career path until a more elevated promotion opportunity becomes available.

          If you’re interested in additional leadership training opportunities for your organization, take advantage of the 60-day free trial of UST HR Workplace. You’ll find 300+ on-demand training sessions to help motivate your nonprofit’s leaders of tomorrow.

          SOURCES:

          “Nonprofit Leadership – The Ultimate Guide For A Real Difference,” donorbox.org, 12/3/24

          “6 Leadership Development Goals to Prioritize in Your Nonprofit,” dickersonbakker.com, 7/12/23

          Effective communication is the backbone of any successful organization, but for nonprofits, it’s even more critical. With teams often juggling multiple roles, limited budgets, and high-stakes missions, healthy communication can mean the difference between achieving your goals or falling short. By fostering a culture of openness, active listening, and collaborative dialogue, nonprofit leaders can create an environment where both their teams and their missions thrive.

          Why Communication Matters in Nonprofits

          Unlike traditional workplaces, nonprofits encounter distinct challenges. Teams often operate in high-pressure environments, balancing passionate stakeholders and limited resources. Poor communication can exacerbate these challenges, leading to misunderstandings, inefficiencies, and even conflict. On the contrary, a culture of healthy communication can boost morale, improve productivity, and foster stronger relationships—both internally and externally.

          The Benefits of Healthy Communication

          1. Stronger Team Collaboration – When employees feel heard and understood, they’re more likely to work cohesively, share ideas, and collaborate effectively.
          2. Higher Employee Engagement – Transparent communication builds trust, increasing employee satisfaction and reducing turnover.
          3. Impactful Mission Delivery – Clear communication ensures that everyone—team members, donors, and beneficiaries—understands and aligns with your mission.

          We’ve laid the groundwork for why a thriving communication culture is essential. Now, let’s unlock its potential. Below are actionable strategies to build a communication culture that empowers your nonprofit and drives impactful results.

          1. Lead by Example – Leadership sets the tone for communication within any organization. If you model transparency, active listening, and respect in your interactions, your staff will follow suit. Make it a habit to communicate your vision clearly, set expectations, and regularly check in with your team.

          Try using an open-door policy to make employees feel comfortable sharing ideas, concerns, and feedback. Leadership workshops on effective communication can also be a worthwhile investment.

          2. Create Channels for Open Dialogue – Healthy communication revolves around having safe and accessible platforms for discussion. Teams in nonprofits often vary in size and location, so adopting diverse communication channels—from regular team meetings to digital collaboration tools—can ensure everyone remains connected and on the same page.

          Schedule weekly or biweekly check-ins to provide space for updates, feedback, and questions. Pair these with platforms like Slack or Trello for day-to-day collaboration.

          3. Prioritize Active Listening – Listening is just as critical as speaking. Actively listening to your team reduces misunderstandings and shows employees that their opinions and emotions are valued. This can cultivate a stronger sense of belonging and respect among staff, which leads to higher morale and better teamwork.

          When engaging with employees, repeat or paraphrase what they’ve said to confirm understanding. Avoid interrupting or rushing them during discussions.

          4. Establish Clear Processes for Conflict Resolution – No organization is immune to conflicts, but the way they’re handled can either build or break team cohesion. Creating structured approaches for conflict resolution ensures that every issue is addressed fairly, strengthening trust and unity across your organization.

          Develop a set of guidelines for handling disputes and train team members in conflict resolution techniques. Encourage mediation led by a neutral third party when necessary.

          5. Share Tactics for Better Communication – Make communication training an ongoing part of your organization’s professional development. Whether it’s teaching staff how to give constructive feedback or how to adapt communication styles across cultural and generational divides, providing these tools will empower your team to communicate effectively and empathetically.

          Host quarterly workshops or provide access to online courses on effective communication skills tailored to nonprofit workplaces.

          6. Celebrate Wins and Acknowledge Efforts – Acknowledgment and gratitude go a long way in building positive workplace communication. Regularly celebrate milestones, both big and small, to create a culture that values contributions and fosters motivation.

          Make a lasting impression by recognizing individual and team achievements. Celebrate successes during meetings, share them in company-wide emails, and consider sending personalized thank-you notes.

          7. Collect and Implement Feedback – Lastly, fostering healthy communication means being open to feedback—and acting on it. Regularly solicit input from your team on how communication processes could improve. Doing so not only strengthens trust but also leads to continuous organizational growth.

          Distribute anonymous surveys to capture honest feedback on organizational communication. Follow up by implementing changes and sharing the outcomes with your team.

          Building a culture of healthy communication in your nonprofit isn’t just about getting people to talk. It’s about nurturing understanding, building trust, and empowering your team to collaborate effectively toward a shared goal. By being intentional with communication practices, you can set the foundation for a workplace where challenges are met with solutions, and everyone—from team members to the community you serve—feels valued and heard.

          At UST, we’re dedicated to empowering nonprofits with the tools and strategies they need to thrive. By cultivating better communication within your team, you can build a stronger culture that propels your mission forward. If you’re ready to take the next step, sign up for UST’s FREE 60-day HR trial today. Gain instant access to 300+ employee training courses and see how we can help your organization succeed.

          Question: How can we help our employees feel more comfortable providing feedback about their managers?

          Answer: Employees are often uncomfortable providing feedback about their managers because they fear workplace tension or retaliation, they aren’t sure what to say, or they don’t believe anything will change. The following practices can help address these concerns:

          • Use a survey tool that will enable you to share results and feedback with managers anonymously. If you are unable to maintain anonymity by sharing the feedback directly with managers, have either the manager’s manager or someone outside of the department compile the feedback into themes to share.
          • Explain to employees how their anonymity is maintained. Insight into how the survey functions will help them feel more secure.
          • Ask questions that allow employees to give as much or as little information as they feel comfortable. Some employees may feel like writing paragraphs. Others may be inclined to provide a rating and nothing else.
          • Give employees time during the workday to complete the survey.
          • Hold managers accountable to changes they’ve committed to making.
          • Work towards creating a culture where giving and receiving candid feedback is the norm. Managers can contribute to this culture by owning up to their mistakes, acknowledging where they have room to grow, and accepting critical input graciously.
          • If retaliation occurs in response to sharing survey feedback, put an immediate stop to it.

          This Q&A does not constitute legal advice and does not address state or local law.

          This Q&A was provided by Mineral, powering the UST HR Workplace. Have HR questions? Sign your nonprofit up for a FREE 60-day trial here. As a UST member, simply log into your Mineral portal to access live HR certified consultants, 300+ on-demand training courses, an extensive compliance library, and more.

          As the year draws to a close, holiday parties and celebrations mark the end of another year. While it’s important to take time to recognize those milestones, preparing your nonprofit from a legal standpoint can help position your organization for a great start in the new year.

          Verify Corporate Compliance

          A quick review of your organization’s bylaws to make sure they reflect the current state of your nonprofit can be a good way to get started.  Think about whether new initiatives may be stretching your bylaws in unintended ways.  If so, consider working with your board of directors to adjust the bylaws to better address your nonprofit’s evolving mission.

          Prepare For Tax Reporting

          The IRS has stepped up audits with the incorporation of new rules surrounding full-time, part-time and overtime employees.  Recent changes have adjusted the salary threshold for employees who are eligible for overtime payments.

          Starting on January 1, 2025, the threshold salary for exempt employees to avoid overtime requirements will be $58,656.  This increase in the salary threshold may mean more of your organization’s employees qualify for overtime – which can significantly impact your nonprofit’s budget.

          It’s important to take note of employees who may be reaching this salary limit and to think creatively about how to manage their compensation in a way that values their contributions to your organization but still helps your nonprofit avoid overtime costs.

          Another way to avoid running afoul of these changing regulations is to consider revising employee contracts to specifically state that overtime hours must be approved in advance.  This can help your organization proactively manage overtime situations and encourage managers to be more mindful of circumstances that may lead to excessive overtime for key workers.

          In addition, programs like UST Trust allow you to opt out of the state unemployment tax system and instead reimburse the state for your actual unemployment claims, dollar-for-dollar. UST assists you through the enrollment process, provides expert claims management, and helps you save money for anticipated unemployment costs in a reserve account owned by your organization as a financial asset.

          UST can evaluate your unemployment claims history, number of employees, and tax rate information (if not yet reimbursing). Simply complete UST’s Free, no-obligation Savings Evaluation Form.

          Contract Reviews and Renewals

          One of the most common situations faced by nonprofit organizations is misclassifying a person as a contract worker rather than an employee. This can be especially fluid as you work with someone over multiple years on long-term projects.  A person’s status as a contract worker could morph over to that of an employee without your organization necessarily noticing the change.

          As a result, it would make sense to take a second look at the people your nonprofit categorizes as contract workers to ensure they still fit that definition according to the IRS.  The six areas to consider are:

          • Opportunity for profit or loss depending on managerial skill – Think of this as an evaluation of whether the worker has the ability to determine their hours, to hire others to assist in the project, whether they can accept or decline jobs or determine the priority of projects.  If the answer to these situations is “no”, they’re most likely classified as an employee.
          •  Investments by the worker and the potential employer – Is the person making investments in their business that solely benefit your nonprofit?  Or are they acting as an independent business where their investments in items such as computers and education benefit multiple clients?
          • Degree of permanence of the work relationship If a person works for your organization on an ongoing basis and to the exclusivity of other employers, they may very well fit the definition of an employee.  Defining the work relationship on a periodic basis that’s centered on a certain project can help confirm an independent contractor arrangement.
          • Nature and degree of control – This consideration covers whether your nonprofit sets an employee’s hours, supervises the person’s performance or limits their ability to work for others.  If your organization’s answer to these situations is “yes”, then it’s likely that they would be considered an employee.
          • Extent to which the work performed is an integral part of the potential employer’s business – This factor highlights whether the work a person does is an integral part of your nonprofit.  If it is, this consideration would weigh in favor of them being an employee.  If it isn’t, then it would weigh more in favor of the person being a contractor.
          • Skill and initiative – Is the individual utilizing the skills you’ve trained them to perform, or are they contributing skills that are outside the current capabilities of your nonprofit?  Individuals utilizing skills you’ve trained them to perform are typically considered employees. Those contributing skills that are outside the current capabilities of your nonprofit may be considered contractors.

          Performance Evaluations

          The end of the year is an opportune time to conduct employee performance evaluations. Even if your organization’s fiscal year concludes mid-year, December offers a valuable chance to check in with employees, provide feedback on their performance, and address any challenges proactively.

          SHRM (Society for Human Resource Management) recommends doing mid-year reviews to help build employee engagement and to also help avoid end-of-year “surprises.”

          Bringing it all Together

          Positioning your nonprofit for success in the new year can be easy when you take a few extra steps in Q4.  Whether it’s thinking about corporate compliance or reviewing your employee tax issues, time spent now can pay big dividends when it comes to getting ready for 2025.

          If you’re looking for specific tax guidance when it comes to employee classifications or want more details on how taxes apply in your state, sign up for a free 60-day trial of UST HR Workplace!

          SOURCES:

          https://independentsector.org/blog/what-does-the-new-dol-overtime-eligibility-rule-mean-for-nonprofits/#:~:text=Nonprofit%20employers%20already%20face%20the,the%20new%20overtime%20eligibility%20rule.

          https://nonprofitresources.us/2023/12/07/navigating-year-end-checklist

          www.shrm.org

          As the world becomes more complex, nonprofits encounter distinct challenges that require creative strategies to sustain growth and enhance impact. While the mission remains the heart of any nonprofit, optimizing operations is crucial for future-proofing your organization.

          Why Operational Efficiency Matters

          Operational efficiency might not seem glamorous, but it is vital for nonprofits aiming to expand their reach and achieve long-term goals. Inefficient processes can drain resources, limit your impact, and frustrate both staff and stakeholders. By streamlining operations, nonprofit leaders can better allocate resources, improve service delivery, and enhance stakeholder satisfaction.

          Key Areas to Focus On

          1. Financial Management: Effective financial management ensures that your nonprofit can sustainably grow and fulfill its mission. Consider adopting budgeting tools and accounting software to enhance transparency and financial forecasting. Regular audits and financial training for staff will also prevent misuse of funds and build trust among donors and stakeholders.

          2. Technology Integration: Investing in the right technology can transform the way your nonprofit operates. Cloud-based tools and platforms streamline processes, improve communication, and allow for more efficient data management. Consider implementing a donor management system, collaborative platforms, or even AI-driven tools for data analysis to optimize outreach and fundraising efforts.

          3. Human Resources Development: A motivated and well-trained workforce is the backbone of any successful nonprofit. Provide ample opportunities for professional development and continuous learning. UST HR Workplace offers a robust cloud-based platform featuring over 300 employee training courses, HR tools, templates, and access to Certified HR Experts. This ensures your team is well-equipped to tackle challenges and drive the organization forward.

          4. Strategic Planning: Developing a comprehensive strategic plan aligned with your mission and vision ensures all stakeholders are working towards common goals. Regularly revisiting and updating your strategic plan helps your nonprofit adapt to changing circumstances and seize new opportunities. Engage board members and staff in strategic planning sessions to ensure a collaborative approach and diverse perspectives.

          5. Community Engagement: Building strong relationships with stakeholders, volunteers, and the communities you serve is crucial for nonprofit growth. Regularly communicate your mission, successes, and needs through newsletters, social media, and community events. Encourage feedback and involvement to foster a sense of ownership and partnership among your supporters.

          Preparing for Future Growth

          To position your nonprofit for future success, it’s essential to lay a solid foundation today. This involves not only optimizing current operations but also being open to innovation and change. Encourage a culture of continuous improvement and adaptability within your organization. Foster collaboration and knowledge-sharing among staff and stakeholders to drive innovation and maximize impact.

          Take Action Today

          Ready to take your nonprofit’s operations to the next level? Sign up for UST HR Workplace, free 60-day trial, and explore their comprehensive HR Workplace platform. This cloud-based solution provides HR tools, templates, and on-demand trainings—empowering nonprofit employers to create a safe, compliant, and productive workplace. You’ll gain access to:

          • Live Certified HR Experts
          • Work-from-Home Resources
          • 300+ Employee Training Courses
          • Thousands of Downloadable Forms & Checklists
          • Online Employee Handbook Builder
          • Job Description Tools

          Don’t miss this opportunity to enhance your organization’s efficiency and prepare for sustainable growth. Click here to start your free trial of UST HR Workplace today.

          By optimizing operations and preparing for the future, nonprofit leaders can ensure their organizations remain resilient, impactful, and ready to tackle the challenges of tomorrow.

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          Privacy Policy

          Privacy Policy and Terms of Use

          UST maintains a secure site. This means that information we obtain from you in the process of enrolling is protected and cannot be viewed by others. Information about your agency is provided to our various service providers once you enroll in UST for the purpose of providing you with the best possible service. Your information will never be sold or rented to other entities that are not affiliated with UST. Agencies that are actively enrolled in UST are listed for review by other agencies, UST’s sponsors and potential participants, but no information specific to your agency can be reviewed by anyone not affiliated with UST and not otherwise engaged in providing services to you except as required by law or valid legal process.

          Your use of this site and the provision of basic information constitute your consent for UST to use the information supplied.

          UST may collect generic information about overall website traffic, and use other analytical information and tools to help us improve our website and provide the best possible information and service. As you browse UST’s website, cookies may also be placed on your computer so that we can better understand what information our visitors are most interested in, and to help direct you to other relevant information. These cookies do not collect personal information such as your name, email, postal address or phone number. To opt out of some of these cookies, click here. If you are a Twitter user, and prefer not to have Twitter ad content tailored to you, learn more here.

          Further, our website may contain links to other sites. Anytime you connect to another website, their respective privacy policy will apply and UST is not responsible for the privacy practices of others.

          This Privacy Policy and the Terms of Use for our site is subject to change.