Being on a nonprofit board can require you to wear many different hats and one of the most important aspects of being on a board is learning the budget approval process. Some board members come equipped with a business background—comfortable dealing with budgets and numbers. On the other hand, some may not have the same appreciation or knowledge base when it comes to understanding the financials.

Since each nonprofit organization has a different approach when it comes to handling their budget, there can be some confusion or differences of opinion amongst board members. Educating your board on the proper key terms, types of budgets and the different approaches, is key to ensuring the best decisions are being made on behalf of the organization.   

Here are a few key terms to understand when learning the basics of a budget and some specific terms used when discussing nonprofit budgets:

  1. Cash basis: A method of recording transactions for both revenue and expenses only when the corresponding cash is received or payments are made.
  2. Accural basis: Under the accrual basis of accounting, revenues are reported on the income statement when they are earned. 
  3. Income-based budget: This budget requires a consistent income based around a particular period.
  4. Zero-based budget: A method of budgeting in which all expenses must be justified for each new period.
  5. Capital expenditures: Money that is spent by a business or organization on acquiring or maintaining fixed assets (i.e. land, buildings and equipment).
  6. Depreciation: A reduction in the value of an asset overtime—due to wear and tear.
  7. Fixed costs: A range of different types of business costs, such as rent, that are constant.
  8. Variable costs: A cost that can vary in relation to changes in the volume of activity.

These terms will help your board increase its financial literacy by reducing the mystery of nonprofit budgets, financial reports and auditing. Since a budget plays such a vital role in a nonprofit’s ongoing financial viability, it’s important your board members can fully understand and approve such budgets.

A subsidiary of the California Association of Nonprofits (CalNonprofits) – a statewide alliance of more than 10,000 nonprofits that serves as the voice of the nonprofit community, CalNonprofits Insurance Services (CIS) has been helping California nonprofit organizations with their insurance needs since 1984. Offering exclusive, cost-saving insurance products ranging from general liability coverage to employee benefit programs, more than 900 nonprofit organizations have chosen CIS as their preferred insurance broker.

CalNonprofits Insurance Services has become the one-stop insurance solution for nonprofits in California since its inception and continues to gain momentum. Not-for-profit organizations have unique insurance needs that differ drastically from any for-profit business and CIS understands those needs better than anyone else – constantly researching new products and services to ensure they have solutions to fit whatever benefit needs are out there.

Developing exclusive, cost-effective plans and discount programs that benefit their clients and keeps nonprofits’ insurance dollars at work within the sector is their missions work. “CalNonprofits Insurance Services is unique because we are a social enterprise subsidiary of the California Association of Nonprofits (CalNonprofits),” said Colleen Lazanich, CEO at CIS. “Revenue generated through CalNonprofits Insurance Services stays in the nonprofit sector and strengthens the nonprofit communities in California.”

Dedicated to serving California nonprofit organizations for over 30 years, CIS has the expertise to help nonprofits determine the best insurance coverage needed to protect their unique needs. To learn more about CalNonprofits Insurance Services, visit https://calnonprofitsinsurance.org/!

Competencies are designed to help individuals grow in their roles and their organizations. However, when competencies are poorly defined or applied incorrectly, they can undermine a nonprofit’s talent management process.

According to the Stanford Social Innovation Review, 1 in 4 senior nonprofit executives will leave their organizations within the next 2 years. These departures can result in a loss of productivity and require the use of organizational resources in order to fill the position. The time and energy spent recruiting and looking for a replacement can equal an employee’s salary depending on the position. These retention rates can have an effect on the managerial level as well. Research shows that managers believe that finding employment elsewhere is the only way they will grow faster.

To reduce turnover, nonprofits can create a talent management process that defines and uses competencies that will help individuals grow in their roles and organizations. When defined and used properly, competencies can help identify particular skills, capabilities, and experiences needed for employees to perform at their best and to encourage future growth.

Here are 4 common mistakes nonprofit organizations make when defining and using competencies:

1. To use competencies properly when assessing an individual’s performance.

A performance assessment of an individual should be based primarily on how well they are doing against their agreed upon goals and target for the year. Competencies enable this performance and act as a guide for individuals to understand the skills they need to develop to improve their performance over time.  Organizations that do this right use the performance assessment to identify the competencies for each individual to work on.

2. Only thinking of competencies in relation to the work of the individual and organization.

Most nonprofits, that have identified and defined competencies, use a list of job-related competencies. These are generally relevant for everyone in the organization (e.g. communication, dependability, workload management) and can include ones that are specific to certain roles. However, many nonprofit organizations forget that they need to have a set of leadership competencies along with the job competencies — to encourage organizational success.

3. Failing to tailor competencies that are both organization-specific and future oriented.

Some nonprofits have a starter set of competencies that they work with that were either pulled from an HR website or another resource. However, most organizations have not considered if these competencies will enable the organization to achieve strategic priorities. While starter lists provide a good foundation, there needs to be a set of competencies that are specific to their work and encourages future success.

4. Not defining competencies that make them user friendly for development purposes.

While many organizations have a short definition for each competency, only a few have taken the time to create a more elaborate definition for each one. This would provide a better understanding of what it means to progress from an early stage to an advanced stage for each competency.

Nonprofit organizations that approach identifying and using competencies with leadership development in mind avoid many of these pitfalls. In addition, getting the competencies right and using them for development purposes gives nonprofits a better chance at increasing retention and job satisfaction among emerging leaders.

Nonprofits connect communities.

A study by the John Hopkins University Center for Civil Society Studies (@JHUCCSS) has found that nonprofits are a significant and growing source of jobs and economic activity worldwide.

The study, The State of Global Civil Society and Volunteering: Latest Findings from the Implementation of the UN Nonprofit Handbook, found that if both paid staff members and volunteers are counted, nonprofits employ 7.4 percent of the total workforce—on average—in 13 nations for which this information was available.

Furthermore, because nonprofits are growing so quickly, it was found that their economic activity is outpacing that of the national average of economic growth in many of the nations studied.

Does this ring true at your nonprofit and in your community? Does it make a difference? Let us know!

Want more about the findings? Read this overview.

Read more about the study’s findings here.

It’s June once again, and for many of you that means the year-end closing of the books on June 30th—which means the AUDITORS will soon be coming!

Presented by Jay Azar, Lindquist, LLP Director of Not-for-Profit Practice Services, this on-demand webinar reveals how your organization can better prepare for the year-end audit and make the process more beneficial for you.

Jay provides expert TIPS on:

  • Administrative planning for the audit
  • Internal control and systems documentation reviews
  • Preliminary trial balance and general ledger reviews
  • Drafting financial statements
  • Supporting schedules for accounts on the Statement of Financial Position
  • Communications before, during and after the audit
  • Handling audit findings during the process
  • Keeping the process moving after audit fieldwork
  • Audit reports and responses to findings

Watch the webinar recording today and learn how you can get the most out of your upcoming audit.

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This webinar series is part of UST’s efforts to educate the nonprofit sector. For more learning opportunities, tips and legal updates just for nonprofits, sign up for our monthly e-News today!

Thousands of nonprofits have registered to solicit donations but don’t always understand state requirements and whether or not they apply to their organization. This nonprofit-exclusive webinar will explain the essentials of fundraising registration as well as review valuable information meant to help ensure that you’re registered before filing your next Form 990.

 

Presented by Affinity Fundraising Registration and hosted by Maia Lee, this on-demand webinar highlights crucial details you need to know to raise funds legally in any state with information not found in any book or website. Maia is the Director of Sales & Marketing for Affinity Fundraising with more than 10 years of nonprofit marketing and development experience.

 

This educational webinar will help you:

 

  • Understand whether you need to get registered and in what states
  • Get key information about possible exemptions
  • Learn how to get started, what it will take, and what pitfalls to avoid
  • Discover where you may be subject to fines and penalties
  • Find out if your website donate button triggers registration requirements
  • Learn how to explain registration requirements to your board
  • And more!

For access to more learning opportunities, tips and legal updates just for nonprofits, sign up for our monthly eNews today!

September 10, 2018

Having recently joined UST as a Marketing Project Specialist, Chelsi is excited to be part of a company that strives to help and be an advocate for nonprofit organizations. While she isn’t currently doing any volunteer work herself, she does donate blood regularly and has already participated in corporate volunteer events during her off hours – I think it’s safe to say she’s a good fit.

Chelsi started dancing competitively at the age of three and stayed active in the dance community for the next ten years. She moved from Utah to California when she was nine and later went on to obtain a degree in Health Administration at CSUN. Before taking a position at UST, Chelsi was a Marketing Specialist within the healthcare arena.

Outside of the workplace, she enjoys living an active lifestyle that includes running, yoga and hiking as well reading, DIY projects and binge watching Netflix. She says she loves to bake and is a die-hard Dodgers fan (tough loss this year). Most of all, she enjoys spending time with family and friends and says her favorite childhood memory was time spent having tea and playing dress up with her Grandmother.

When asked which TV show her life emulates, she answered Gilmore Girls, sharing “Growing up with a single mom, our lives were full of ups and downs but I wouldn’t have had it any other way.” Her favorite holiday is Christmas and apparently she especially loves to bake during the holidays – I guess that means extra holiday pounds for the rest of the team though I don’t think anyone will be complaining.

Help us in welcoming Chelsi to the UST team via Twitter @USTTrust or Facebook @ChooseUST with the hashtag #MeetUSTMondays!

Exit interviews can be an extremely effective tool when done properly. By gathering meaningful information from a departing employee about their experiences with your organization, you can make improvements that could increase retention.  

 

Presented by Glassdoor and hosted by Christopher Lee, this on-demand webinar highlights the proper execution of exit interviews and their impact on the business. Christopher is the HR Manager for Epsilon with more than 10 years of experience helping businesses to meet their goals through employee relations, performance management and organizational development.

 

You’ll learn why the exit interview is so important, not only for the organization but also for the exiting employee, current personnel and future staff.

Watch the webinar recording today!    

Want access to more learning opportunities, tips and legal updates just for nonprofits, sign up for our monthly eNews today!

Utilizing State-Specific Unemployment Claims Administrators, Who Help Protest Unemployment Claims and Attend 100 % of Hearings, UST Participants Save More than $27.8 Million in Unemployment Claims Costs.

Santa Barbara, CA (August 14, 2017) – The Unemployment Services Trust (UST), a program dedicated to helping nonprofits reduce paperwork burdens and protect assets, today announced it has identified $26,219,466.13 in unemployment claims cost savings plus an additional $1,592,247.82 in errors that are refunded to UST participants.

Since 1972, 501(c)(3) nonprofits have possessed the exclusive ability to opt out of the state unemployment tax system and instead pay dollar-for-dollar for their own unemployment claims—as allowed by federal law. UST provides nonprofits the tools they need to exercise their unique tax-exemption status in a safe and cost-effective manner, through dedicated administrative support, e-Filing capabilities and expert claims advice.

UST participants are able to efficiently combat improper unemployment claims, meet important deadlines and prepare for claims hearings by utilizing their state-specific claims representative—helping them to avoid costly penalties while offsetting the administrative headache. UST’s claims administrator equips more than 2,200 participating nonprofits with the guidance and resources they need to confidently manage their claims process.

“In a sector where employee bandwidth and funding is often stretched, it’s beyond rewarding to know that UST provides such significant savings to our nonprofit members,” says Donna Groh, Executive Director of UST. “We know this money filters right back into the nonprofit community and that’s what the UST program is all about—strengthening nonprofits’ missions.”

501(c)(3) nonprofit employers with 10 or more employees can submit a free Unemployment Cost Analysis form to readily determine whether their organization is overpaying in state unemployment taxes. Those who enroll in the UST Program will receive instant access to expert claims advice.

PT Barnum’s quote, “There is no such thing as bad publicity” is not the case when an employee comes forward with a claim of harassment or hostile work environment and, to make matters worse, discusses the company’s handling of the situation on social media or in the press.

If you’re a company like Uber, you can hire the former Attorney General to manage the issue. But if you’re not, what can you do to get things under control? And how could your company have avoided the issue to begin with?

Presented by ThinkHR, this on-demand webinar highlights the latest best practices and tools to prevent harassment and discrimination claims.

You’ll learn the key components of respectful workplace cultures for prevention as well as practical ideas for conducting investigations into claims of improper conduct to help resolve issues when they arise.

Watch the webinar recording today!

This webinar offers 1 HRCI and SHRM-approved credit. Want access to more HR-certified webinar opportunities and a live HR hotline? Visit www.chooseust.org/thinkhr/ to sign up for a FREE 30-day trial of the UST HR Workplace, powered by ThinkHR.

The Unemployment Services Trust has added a new eBook to its library, aimed at helping nonprofit organizations to more effectively find, develop and retain the right kind of talent.

SANTA BARBARA, Calif. (September 28, 2017) – The Unemployment Services Trust (UST) reveals some of the most common courses of action to take in order to help sustain employee talent that’s a best-fit for organizational values, culture and mission.  This short eBook provides ideal tactics nonprofits can utilize when approaching reoccurring struggles with recruiting and retaining personnel.

As a nonprofit organization, having the right team is critical to your mission. Without the guidance of strong and steady leadership or the driving force of sufficient organizational support, nonprofits are left vulnerable to financial, strategic and geopolitical uncertainties.

The eBook, “Nonprofit Talent Sustainability Strategies: 5 Ways to Combat Hiring & Succession Planning Obstacles,” reveals that “77% of nonprofit organizations across the country have no leadership transition or a succession plan.” Such lack of preparation can lead to staff burnout, unfinished projects, lost deadlines, and unrealized mission goals.

“The competition for talent is at an all-time high, making it essential that your organization understands how to leverage the benefits you have to offer,” explains Donna Groh, Executive Director. “This eBook provides the insight organizations need to best prepare for inevitable staffing departures while persuading stellar job candidates to come onboard—helping them save valuable time and money.”

Utilizing recent survey data and nonprofit employment trends, UST is able to provide nonprofits with the top five ways to combat hiring and succession planning obstacles.

The eBook, now available for free download, also highlights:

  • Competitive benefit ideas
  • New statistics from the sector
  • Trending recruitment tactics
  • Key ways to engage new staff

You can download your complimentary copy today at: http://www2.chooseust.org/2017/eBook

The Wage and Hour Division of the U.S. Department of Labor (DOL) had issued guidance based on inquiries from businesses about wage and hour issues that arise in the workplace through the distribution of opinion letters for five decades. In 2010, the Obama Wage and Hour Division decided to cease issuance of these letters and alternatively, decided to publish “Administrator Interpretations” of the Fair Labor Standards Act (FLSA) topics in its place.

Last year, the Trump administration announced that it would resume issuing opinion letters and began following through on its promise earlier this year when the DOL reissued 17 opinion letters previously withdrawn by the Obama Administration. Those letters addressed a wide range of topics from discretionary bonuses and calculation of salary deductions to administrative exemption qualifications.

Opinion letters are meant to guide employers and employees with respect to both the Fair Labor Standards Act (FLSA) and the Family Medical Leave Act (FMLA) laws by providing a better understanding of what is entailed. As noted on the DOL website regarding Rulings and Interpretations, “As part of the administration of the FLSA and the FMLA, interested parties may seek and officials of the Wage and Hour Division may provide official written explanations of what the FLSA or the FMLA requires in fact-specific situations.”

If you have a question about wage and hour laws that you can’t find answers to, requesting an opinion letter might be the way to go. It is important to remember that opinion letters are not binding but are rather informal guidance provided by the Department of Labor. A positive response can help an employer defend a policy in court while a negative response can get an employer to quickly change bad policies.

While the DOL can’t answer all employer inquiries, any clarity they can provide to employers in areas that are frequently unclear or confusing can be helpful—the hope is that the DOL continues to distribute these letters going forward.

For a limited time, UST opens up registration to 501(c)(3) nonprofits interested in learning about accreditation and its benefits for your organization.

UST, a program dedicated to providing nonprofits with dedicated HR support and educational tools, presents an exclusive 60-minute webinar that offers an overview of the major phases of the accreditation process and highlights the benefits of becoming accredited—including enhancing revenue opportunities.

Join UST and Jennifer Flowers, Founder & CEO of Accreditation Guru, Inc., to better understand the fundamental organizational requirements necessary for accreditation, key participants to include throughout the process and how to avoid the common pitfalls of accreditation preparation.

This educational webinar will teach attendees about:

  • Understanding the key benefits to becoming nationally accredited
  • Comparing timelines and costs for accreditation from the various accrediting bodies
  • How to recognize why accreditation mandates are becoming more
  • Becoming familar with how to avoid common accreditation preparation
  • How to identify what is needed to successfully prepare for accreditation

If you’re a 501(c)(3) nonprofit executive with 10 or more full time employees, register for the February 13th webinar before space runs out!

If you’re like many people the idea of having to sit down and negotiate a compensation package—of any kind—dulls the thrill of finding a new job and learning that you’re the right fit. But by preparing yourself for the conversation you are better positioned to come to a happy medium with your potential employer.

If they’re fighting this hard, chances are they didn’t do their research!

As a starting point, make sure that you’ve gotten far enough along in the interview process that you’re questions are appropriate. The standard suggests that asking in the first meeting is too forward, but by the second or third interview you should have some idea of whether or not the salary fits your expectations and living standards.

Once you have an idea of what the salary may be, and are firmly knowledgeable of the fact that the organization (and you!) have decided you’re right for the position be “Ready For Practice.”

A short mnemonic you can easily remember to help you better retain these principles, “Ready For Practice” translates to: Research, Focus on the Future, and Prioritize.

Let’s start with “Research.”

Research

If you don’t already know them, research the standard compensation benefits for specific nonprofit jobs. Often nonprofits review their executive compensation packages annually against peer organizations, but if you aren’t looking for an executive position you may have more hurdles to jump.

Often nonprofit positions outside of the executive suite are more heavily influenced by internal structures and the current compensation of peer positions. The better you understand these ranges, the more leverage you can create to tailor a request close to the standard that the Board or CEO will accept.

Also look at the financial history of the organization you are interested in working with. If you notice that they have had a rough time for the past 5 years, it may not be in your best interest, or in theirs, for you to ask for $500,000 a year. But, if you look at their financial history and see that they have the right combination of stability and growth that would merit a larger salary for your position, ask for it.

What other tips do you have for negotiating a nonprofit compensation package? Do you have any little known (or best used) research practices others can use? Tell us about them on Facebook, Twitter, or LinkedIn!

When Laura, Customer Service & Enrollment Supervisor, isn’t herding cats around UST, she’s busy at home with her two young daughters—who I might add, are both under the age of 5, and are absolutely adorable?!—and convincing them that art museums featuring anything from romanticism to modern art are where it’s at.

Clearly she isn’t turned off by a tough sell.

So, beginning earlier than the rest of us wake up, Laura heads into the office, gets on the phone, and helps nonprofits across the country solve problems, better understand their rates, and save money that they can then put back toward their core mission.

And Laura jumps at the opportunity. “I was very excited to work with nonprofits,” she explained about her start with UST.

“I had always wanted to get into the nonprofit world as I feel very drawn to cause related endeavors and feel this opportunity fits my skills excellently.”

(Even her blood wants to get involved with helping those who need it! “I donate blood several times a year as a form of community service because I qualify to donate to the local neonatal intensive care unit.”)

And, echoing the sentiments of much of UST, Laura loves spending time with her family when she’s not at work. Recounting time spent growing up she explains, “My family would spend a month of every year in the Redwood National Park.”

“It was an amazing chance to explore nature, spend time together, and learn independence. We would stay in a very small town with only one grocery store/tackle shop and the same families would go there every year. I have very fond memories of the early mornings spent learning to fish with my father and then hiking and swimming with my mom and brother.”

“Those summers taught me that my presence has an affect on the world around me, and I feel that those early experiences really showed me that I can do things to help others succeed, which is– at the heart of it– what UST is all about.”

Have questions for Laura? Want to know more about the UST Team? Tweet us at @USTTrust!

Having made huge waves in headlines across the United States, the recent report “How America Gives” has nonprofits and donors alike reassessing how they interact with charity, and where charitable funding is most likely to come from.

Take a moment and ask yourself about your perceptions of who in America gives the most from before this study came out.

Would you have been mostly likely to assume that the very rich gave the most, or that the middle class and working poor gave the most? If you guessed the first, you, like many of those culling through the study results, would have been in for quite a surprise. Throughout America, those who live among the needy, who see the specific needs of others on a daily basis, are more likely to give a higher percentage of their median discretionary income to charitable causes.

In short, the study found that:

  • The very rich aren’t the most generous donors. People who live segregated from the needs of others are less likely to donate to charities because they have no reason to think about it and see no significant impact from their gift.
  • Tax incentives that promote giving make a significant difference in how much charities are able to pull in. Charities in states that incentivize giving reap far greater donations across the board.
  • Religious giving changes the entire landscape of charitable donations. Highly religious areas tend to give more to charity, and churches, than less religious areas.
  • There is an association with politics. The eight states that ranked the highest for fundraising voted Republican in the last presidential election, while the seven lowest-ranking states were overwhelmingly Democratic. See the politics of giving breakdown.
  • Older women are far more generous than older men, but women are not asked to give as often as men are.* Although women make less than their male counterparts on average, for every $100 donation given by an older, affluent man, a woman of similar age, income and other characteristics donates $256.

Perhaps most importantly the study leads to the suggestion that as the nation continues to recover the cities and states with the most generous residents may be in a better position to offset unemployment and other financial setbacks.

Find out how generous your city is, and see how your state stacks up in terms of overall giving.

*This was found by researchers at the Women’s Philanthropy Institute at Indiana University’s Center on Philanthropy. Read the full findings of how women interact with philanthropic causes here.

UST is giving 532 nonprofits $3,869,249 in cash back for their ability to reduce their anticpiated unemployment claims within the year.

UST, a program dedicated to providing nonprofits with workforce solutions that help reduce costs so that they can focus more on their missions, announces that it will be dispersing $3,869,249.80 in cash back to more than 532 of their program participants. After accruing all of their claims savings, audited state returns and cash back throughout the last year, UST members will have $30.1 million filtered back into their nonprofits’ pockets.

UST aims to provide 501(c)(3) nonprofits with the latest HR training, outplacement resources and unemployment claims management tools they need to stay compliant with the state and federal laws, while also helping to reduce paperwork burdens.

One of UST’s most popular programs, UST Trust, helps reimbursing employers build a reserve—protecting their money on the front end—so they don’t experience the steep ups and downs in their cash flow due to unexpected unemployment claims. Unlike their for-profit counterparts, UST Trust participants can receive cash back through UST when their organization is able to reduce their unemployment claims and still maintain a healthy reserve balance for future claims.

“The $3.8 million we are returning to UST participants can offer their organizations the flexibility they need to execute additional mission-driven initiatives,” said Donna Groh, Executive Director of UST. “Here at UST, we are pleased to be able to continue returning funds to our members and further supporting the communities in which they serve.” 

These refunds are just part of how UST serves its mission of “Providing nonprofits with workforce solutions that reduce costs and strengthen their missions.”

To learn more about the UST program for 501(c)(3) employers, visit www.ChooseUST.org. If you’re a reimbursing or tax-rated nonprofit, and looking for innovative ways to save money, fill out a free Unemployment Cost Analysis form.

Understanding talent management and succession planning at your nonprofit is about more than just knowing where your next hire will come from and planning for transitions. It’s all about understanding the non-negotiables, the employee skills and talents that are necessary for the continued success of your nonprofit. And, in the long run, it’s about carefully planning for the future ahead of each critical position.

Building your Talent Management Capabilities

Successful agencies don’t simply happen overnight, and neither does successful succession planning. It’s important that key people within your organization recognize that people will leave, employees will retire, and key positions will need to be filled ASAP. When this recognition happens, you can begin approaching succession planning within your agency as an opportunity to train and support talented employees in a way that moves their career forward.

When you are open and up-front with employees about the opportunities available for them at your organization, you position yourself and your Board for success. But you also get employees involved in the talent management of your agency.

Getting employees on board early and often, means that they’ll be prepared to do the work required to grow to their aspirations. It also helps ensure that they’ll understand the steps required to get a promotion and help new hires assimilate to your mission. To do this you must start with an internal review of your existing talent management steps and be prepared to change them as necessary.

Internal Review

To get started, begin considering what you’re doing now to develop the people within your organization that you know you would like to groom for future leadership. Ask questions that will help you gain understanding and insight into areas which they need strengthening in, and prepare to demonstrate the importance of investing in their development to others within the organization.

Some questions to consider before you begin explaining the importance of talent management and succession planning might include:

  • What is your average turnover/tenure rate?
  • How do you identify internal talent with a high potential to take on leadership roles?
  • How do you measure their performance and support their growth?
  • What would you do if a key member of the agency gave a two week notice today?
  • What problems or obstacles would their successor encounter before they are fully integrated into the agency?
  • Plan Overview

    As you get past the planning stage and actually begin drafting a plan overview, make sure that you remember key items such as visible support from key management and Board members that strong succession plans often include. Lastly, make sure that key leadership criteria with incorporated information from focus groups and industry best practices, and agency accountability and follow-up options should also be included in your plan.

    Defining Success at your Agency

    Before you get too deep into writing the plan overview and creating the framework for your organizations talent management though, it’s important to determine what the most vital positions are.

    You’re first thought might be to say your agency couldn’t survive without the Executive Director, or the CFO, but what about the Intake Coordinators, Fundraisers, and front-line workers your agency couldn’t live without?

    While determining which positions are most important at your organization, be careful that you’re not only including top management, top performers, or current, well-liked employees. Include positions that are crucial to the daily functions of your organization and give these the highest priority for review based on the risk the organization runs with each vacancy.

    Once the most important positions are determined, develop a success profile for each position that identifies the knowledge, skills, abilities, and experience a new hire would have to have for this critical role. Now might also be a good time to take a look at the performance assessments that have been conducted on this position- regardless of the employee within the position- over the last few years. (Learn more about setting the stage for an effective performance Assessment here.)

    Developing the Talent

    Now that you’ve determined the most critical positions within your organization and developed success profiles for each of them, you’re ready to begin figuring out how to develop the employees you would like to groom for these positions.

    You’re goal in this should be to identify and develop internal candidates that may be potential successors for specific positions. These potential successors should match:

  • Your needs as a nonprofit agency
  • The skill set that they can or will be developing
  • The employees aspirations for their future
  • If an employee you think might be worth developing doesn’t match on any of the above three points, begin developing outside connections that expose you to the potential employees that would help fill the gaps in your agency.

    Throughout this step you’ll want to use performance management tools that integrate organizational data outside of the typical performance review to help build a complete profile of the individual that is in the position. A more comprehensive talent inventory that involves multiple aspects of the position will allow you to identify skills gaps at the departmental level and systematically identify the people with qualifications that fill those gaps.

    Recruiting and Hiring the Right Talent

    Before finishing your succession planning, make sure that you have identified the timing and process for bringing new people into the organization, particularly for your critical roles. Because successful recruitment occurs long before a vacancy occurs, the profiles and assessments you create now will help you identify the types of skills and talents that your organization thrives because of.

    Read the original Capability Company report here.

    Being a part of the working world, we’ve all encountered moments of failure. Take this scenario for example: You’ve been assigned a task, you’ve completed your research, and you believe you’ve done all you could do to prepare—however, things still don’t work out in your favor. While we all recognize the importance of learning from our mistakes, employees can struggle to bounce back from missteps. From a project that didn’t meet its target objectives to an important missed deadline, what is the best course of action to take to help your employees recover?

    Employees can take on failure in one of two ways:

    1)      People can bounce back from their mistakes with a clear mind and resolve.

    2)      People can feel crushed, lose confidence and even stop doing the things that made them successful.

    How you communicate with your employees can have a huge influence on their performance. For the nonprofit sector in particular, it’s crucial to maximize what limited bandwidth there is—in order to achieve steep mission objectives. When building resilience in your employees, you must consider the tactics that work and don’t work when restoring an employee’s confidence.

    While building up an employee’s self-image or giving a pep talk is harmless, it doesn’t seem to provide much help to the situation at hand. A pep talk can gloss over the failure rather than addressing the problem (and potential solution) head on. To be their guide to move on from the disappointment and better manage his or her emotions is essential. Also, encouraging people to forgive themselves, while still holding themselves accountable for their mistakes, is a beneficial tactic for people to build upon their mishaps.

    Follow this simple 3-step model to bounce back from failure:

    1)      Acceptance– People need to come to terms with the fact that they made a mistake and understand why.  This helps people own their failures.

    2)      Forgiveness– Encourage employees to forgive themselves. Use empathetic wording, such as “This is a tough job; you’re not the only one that is having a hard time” or “Try not to beat yourself up over this.”

    3)      Planning– Help employees plan their way forward. Figure out what they can do to fix the damage, if possible, and how to avoid making a similar mistake in the future.

    UST helps 501(c)(3)s lower their unemployment costs & maintain HR compliance, providing resources to help refocus on mission objectives.

    UST, a program dedicated to helping nonprofits ensure compliance and protect assets, today announces it has identified $2,839,940 in potential unemployment liability savings for 135 eligible nonprofits.

     

    For 35 years, UST has been helping 501(c)(3) organizations exercise their exclusive nonprofit tax alternative, as allowed by Federal law, to pay only for their own unemployment claims which can save them thousands annually. Because they are no longer subsidizing for-profit companies in the state tax system, and are receiving expert claims guidance, UST members can efficiently manage their unemployment claims while mitigating liability.

     

    “UST has continued to identify potential unemployment claims savings for multiple nonprofits across the United States,” said Donna Groh, Executive Director of UST. “It’s incredibly rewarding to know that the UST program continues to provide financial relief to such hard-working nonprofits and the communities they serve.”

     

    UST offers exclusive access to a variety of resources, ranging from a live HR hotline and job description builder to e-filing capabilities and claims hearing support. By utilizing their dedicated claims representatives, cloud-based HR resources, and outplacement services, these nonprofits can refocus their saved time and money on what matters most—achieving mission objectives.

     

    If you’re a 501(c)(3) looking for ways to help your nonprofit save money, benchmark your unemployment costs by filling out a free Unemployment Cost Analysis form today.

    Nonprofits play a vital role in society by indirectly boosting the economy. Just like their for-profit counterparts, they have payroll, pay mortgages and utilities and have overhead costs. Unlike for-profits, they rely primarily on grants, donors and the community for financial support – making it all the more important that they understand the financial risks they face.

    Earlier this year, the findings from a study put out by SeaChange Capital  Partners, Oliver Wyman and GuideStar, “The Financial Health of the United States Nonprofit Sector:  Facts and Observations,” were released and the results signaled an urgency for improved risk management to reduce the likelihood of financial distress within the sector.  

     

    Some key takeaways from this report include:

    • Overview of the size and scale of the US nonprofit sector
    • Key financial metrics segmented by size, sub-sector and geography
    • Learn how you can strengthen your nonprofits financial position
    • Ideas for reducing financial distress within your organization
    • Key financial health indicators

     

    If you missed it, download your copy today and learn how you can either put a holistic risk management framework in place or enhance your current risk management practices!

    Don’t let change overwhelm your organization!

    The phrase, “the world is shrinking,” symbolizes the global influence of technological growth and innovation. While most people stress over these ongoing changes, developing thorough and consistent change management procedures often restores a much needed sense of control in the workplace.

    While change affects every work sector, nonprofits in particular often view change in two opposing viewpoints—either as opportunity for mission advancement or as a risk for total organizational downfall. By analyzing the most predominant changes seen throughout the nonprofit world, these organizations can better predict and prepare for such adjustments.

    Changes prevalent throughout the nonprofit workforce include:

    • Increasing demand for high-tech information technology
    • Greater focus on efficient administrative and cost practices
    • Staffing changes
    • Restructuring of job requirements or work practices

    Though change can be difficult, it can be an asset used to further a nonprofit’s overall development, as long as proper procedures are followed.

    Here are a few methods to help you cope with change:

    1. Have your managerial staff rate your organization’s competencies, relevant to change management. Evaluate things like your organization’s readiness for change, board attitude towards change, executive leadership, and your financial stability.
    2. Once you know change will occur, determine all potential effects. It’s important to decipher what factors influenced the change in the first place, to help identify future changes. Additionally, looking at every anticipated effect can help you counteract a negative impact.
    3. Communicate with your staff and encourage feedback, when warranted. In order to avoid feelings of panic or unease among your employees, be sure to inform them what changes are likely to occur and when. Be sure to explain how change will affect both individual positions and the organization as a whole. Allowing your staff to provide feedback will not only give them a sense of control, but also allow you the time to alter changes based off of employees’ suggestions.
    4. Evaluate all changes and review the success rates. Decide whether or not the change was successful and beneficial to your nonprofit’s growth. Be honest with yourself—learn from the mistakes made when the change was implemented and adjust future procedures accordingly.

    While you can’t always control change, you can control how you react and integrate change within your organization. Because change is often unexpected, it’s important to learn from your mistakes and keep tabs on what was done right. Remember, without change, the world is static. And change is what gives your nonprofit the ability to move forward.

    Read more about change management here.

    Question: Can we advertise for a specific gender for home health aide positions? (Some of our clients feel very strongly about having a same sex aide help them with their bathing and changing needs).

    Answer: This question has been reviewed by the Equal Employment Opportunity Commission as it relates to employment discrimination, particularly in service and health-related professions. And while the courts have consistently ruled that employers in personal service firms cannot discriminate based on “client preference” relating to race or national origin, this issue of gender preference has been open to more interpretation. Here’s why:

    While Title VII of the Civil Rights Act of 1964 prohibits discrimination in employment on the basis of race (color), sex, religion and national origin, it does allow an employer to have hiring preferences based upon “bona fide occupational qualifications” (BFOQs).

    Some employers have taken these BFOQs to mean that if a client or patient demands not to be taken care of by someone outside of the patient’s race or nationality, then the employer could use the client’s demand as a BFOQ. The EEOC and the courts have expressly said that race can never be a BFOQ and that there are very few instances where national origin could be a BFOQ (and those instances are generally around language barriers, not cultural or religious ones).

    However, in the case of sex/gender, the courts have ruled that it is unlawful gender discrimination in employment for a healthcare employer to have a policy saying that female patients get only female caregivers while male patients may be assigned either male or female caregivers. However, a health care employer can honor a specific request from a patient for a same-sex caregiver, without violating the laws against discrimination, but only if the care to be given involves issues of intimate personal privacy, such as a patient’s preference not to have an opposite-sex caregiver assisting with toileting or cleansing the patient’s body. The courts have gone on to say, however, that there must be a request from the patient for a same-sex caregiver, rather than a blanket policy excluding opposite sex caregivers. The blanket policy initiated by the employer could lead to legitimate charges of gender discrimination.

    We would encourage you to review the types of work your employees are doing for your clients and document the instances of intimate personal care where the client has requested an aide of a certain gender. Do not institute a blanket policy where female clients are attended by female aides and male clients by male aides. Review each situation on a case-by-case basis to ensure that there is no unlawful discrimination or discriminatory intent.

    Q&A provided by ThinkHR, powering the UST HR Workplace for nonprofit HR teams. Have HR questions? Sign your nonprofit up for a free 30-day trial here.

    When unemployment insurance benefits were first offered in the 1930s, the question of whether an employee deserved to collect was fairly straightforward. The answer simply revolved around whether or not an employee had lost their job through any fault of their own, whether they were available for work, and whether they were actively looking for work.

    Three questions—questions that could be solved with a simple ‘yes’ or ‘no’—determined who could, and who could not, collect unemployment benefits.

    In recent years though, the question of which employees deserve to be able to collect has become a much more complicated topic as budgets have been restricted and more and more jobless workers apply for unemployment benefits.

    But now, another complicated topic of discussion has arisen: Should millionaires that meet all other standards be allowed to collect unemployment insurance benefits?

    First debated on the Senate floor after a Congressional Research Service report revealed that almost 2,400 people with annual household incomes topping $1 million, and another 954,000 with incomes topping $100,000, received unemployment insurance benefits in 2009 the question has received shocked attention.

    While these groups only make up 0.08 percent of the 11.3 million U.S. tax filers who reported unemployment insurance income in 2009, the report was released after about 1.1 million people exhausted their jobless benefits during the second quarter of 2012. The timing of the release served to further drive home the importance of finding a long term solution for state unemployment insurance trust funds, many of which have run low, as another 4.6 million jobless workers filed for benefits.

    As the nationwide jobless rate continues to remain around 8 percent, and more jobless benefits run out, the question of who collects unemployment benefits must be definitely answered. But, what other questions will the answer reveal?

    Read the Bloomberg News article here.

    How well would you guess you know the Nonprofit Sector?

    Would you be surprised to learn that 1 in 10 people work for a nonprofit? Or that, the nonprofit sector makes more money–every year— than the economies of Saudi Arabia, and Sweden combined?

    Sometimes we forget the incredible impact of the nonprofit sector overall, but this short video, made by YouTube contributor PhilanthropyGuy, did a good job reminding us at UST! Take a moment and watch it, and let us know what you think. Were you as surprised, and impressed, at everything nonprofits do?

    Watch the Video here: Know Your Sector- Nonprofit Impact<

    Have you ever critiqued a coworker because of their overbearing tendencies or their abrasive personality? Don’t worr y; you’re not alone in your frustrations. However, learning to dissect and identify your own and others’ personality traits can actually increase work ethic and strengthen internal relationships—paving the way for a stronger organization overall.

    For nonprofits, employees’ collaborative efforts are often the key element to mission advancement.  But clashing personalities working toward the same goal can lead to resentment and impatience in the work place.

    Learning to recognize and understand others’ personality strengths and weaknesses can help you appreciate the diverse environment you work in.  Specifically, nonprofits can take advantage of their diversity when it comes to improving their employment procedures and ensuring ongoing structural soundness.

    Basic working styles can often be separated into 4 broad categories:

    • Learning—Learners are the researchers.  Unable to quench their thirst for knowledge, learners are constantly looking for the root of current and potential problems.  For instance, with regard to your organization’s employment practices, learners can help analyze the strengths and weaknesses of your workforce, analyze how better documentation and standardized hiring practices can lead to a stronger, more long-term labor force.
    • Loving—These individuals are known for their relationship building abilities. They tend to show empathy and kindness towards others and understand how to approach difficult situations with grace. Spreading optimism throughout the office can help your nonprofit maintain a “glass-half-full” outlook on everyday work problems. Internal positivity and support alleviates stress during unanticipated budget or employee loss—providing you with a sense of security and consistency.
    • Doing—Doers are known to execute and accomplish set goals. They thrive on lists, deadlines, and projects. For example, by utilizing this focus and attention to detail, nonprofits can analyze and restructure their training and continued education opportunities—leading to greater time efficiency and overall HR effectiveness.
    • Leading—Leaders create and persuade by providing your employees with the tools to succeed.  Able to paint a picture of their visions, using innovation and passion, leaders are able to easily rally support behind their ideas. Great leaders inspire employees to constantly push themselves and take calculated chances to further your nonprofits’ mission. With each leader setting the bar even higher for the next, your nonprofit will be on track for upward mobility and constant procedural refinement.

    Whichever working style team members possess doesn’t really matter by itself.  What most affects a nonprofit’s success is the compilation of strengths your team brings to the table and your team’s ability to successfully work together as a cohesive unit. As long as you understand and utilize everyone’s unique abilities, pertinent to your team’s progress, your nonprofit will continue to flourish.

    UST offers their highest attended webinar- learn more about the unique tax alternative provided to 501(c)(3) nonprofits.

    UST, a program dedicated to providing nonprofits with dedicated HR support and educational tools, presents a short on-demand webinar to showcase some of the most common unemployment & HR risks that are costing nonprofits thousands of dollars annually.

    UST shares insights into their many service offerings as well as best practices that can help reduce costs and streamline workforce processes.

    This educational webinar also teaches nonprofits about:

    • Reducing unemployment tax liability as a 501(c)(3)
    • Self-funded reserves and insurance options
    • Ensuring compliance with state and federal law
    • Efficiently managing unemployment claims, protests, and hearings
    • Avoiding costly HR mistakes
    • Importance of onboarding and professional training
    • Enhancing goodwill by utilizing outplacement services

    “Whether your primary focus to protect your assets, ensure compliance, reduce unemployment costs or to simply allocate more time and money to your mission-driven initiatives, this webinar can provide invaluable insight that can help you to refocus your funding and employee bandwidth on the communities you serve,” said Donna Groh, Executive Director of UST.

    This webinar will also explore UST’s holistic program, which is already helping more than 2,200 participating nonprofits lower their unemployment and HR liability. If you work for a 501(c)(3) nonprofit with 10 or more full time employees, be sure to watch this webinar today!

    Nonprofits play a vital role in society by indirectly boosting the economy. Just like their for-profit counterparts, they have payroll, pay mortgages and utilities and have overhead costs. Unlike for-profits, they rely primarily on grants, donors and the community for financial support – making it all the more important that they understand the financial risks they face.

    Earlier this year, the findings from a study put out by SeaChange Capital  Partners, Oliver Wyman and GuideStar, “The Financial Health of the United States Nonprofit Sector:  Facts and Observations,” were released and the results signaled an urgency for improved risk management to reduce the likelihood of financial distress within the sector.  

     

    Some key takeaways from this report include:

    • Overview of the size and scale of the US nonprofit sector
    • Key financial metrics segmented by size, sub-sector and geography
    • Learn how you can strengthen your nonprofits financial position
    • Ideas for reducing financial distress within your organization
    • Key financial health indicators

     

    If you missed it, download your copy today and learn how you can either put a holistic risk management framework in place or enhance your current risk management practices!

    Updating your employee handbook will help your employees stay in-the-know regarding your nonprofit’s evolving rules and regulations—a process that, when well executed, can protect your organization from undue employment problems and improper unemployment claims, as well as build employee relations and secure a healthier internal culture.

    Taking the time to alter employee handbook policies at least once a year can mitigate employment related lawsuits and ensure your nonprofit’s overall progression.

    As milestone employment laws change, even laws not directly impacting employment– including state-by-state changes in regulations regarding medical marijuana and gun carry permits– your employee handbook must clearly identify and address your organization’s policies regarding legal changes that impact your organization.

    If you don’t help keep your staff properly informed, you can’t expect them to decipher what’s work appropriate and what’s not. And if you do leave it up to individual employees to decipher what is an isn’t appropriate, your organization is left open to employment related lawsuits and expensive, improperly collected unemployment benefit claims.

    Some of the most important policies you should re-examine, if you haven’t done so in the past 6 months are:

    • Employee benefits
    • Break time for nursing mothers
    • Discipline processes
    • Hourly employee regulations

    Remember, you need to be consistent and effective with employee handbook updates. Rather than completely changing everything, learn how to simplify wording and tweak pre-existing policies. (There’s no need to reinvent the wheel if you don’t absolutely need to.)

    But the most important thing that you must do is educate your employees on their behavior and rights at the workplace; it’s beneficial to all parties involved.

    Whenever the Handbook is updated, take the time to double check that you have proof of receipt from everyone since it’s imperative that you keep these easily accessible at all times. Without proof of receipt, your organization is open to improper unemployment claims, lawsuits, and all sorts of other slippery slopes.

    When everyone at your organization shares the same views on organizational rules and expectations, you lessen the risk of confusion and unintended misconduct.  An updated handbook leads to a consensus on expected behavior and attitude—paving the way for a more harmonious work experience for everyone.

    Learn more about how to update your Employee Handbook here.

    Question: Can we maintain a zero-tolerance marijuana use policy in our workplace if medical marijuana use is legal in the state?

    Answer: Yes, you can. Employers have an absolute right to maintain a drug-free workplace and do not have to allow or tolerate drug use or intoxication in the workplace. Although some states permit the use of marijuana for both medicinal and recreational purposes, most state laws provide exemptions for employers to prohibit the use of marijuana in the workplace. If you maintain a drug-free workplace, then your employees may be subject to discipline and/or termination when working under the influence of marijuana (i.e., on-the-job intoxication). In states where marijuana use has been legalized for medical or recreational purposes, employers may elect to establish intoxication standards for marijuana metabolites, rather than imposing discipline for any presence of the drug. However, this standard must be applied consistently and regularly to all employees.

    As of February 2016, marijuana continues to be an illegal drug under federal law (which trumps state laws), and employers are not required to permit on-the-job use of or marijuana intoxication by employees or applicants. You may discipline employees who are legally using marijuana under state law but who are in violation of your workplace policy, because under the law, employees are not protected from being fired for failing a drug test.

    Alternatively, you may elect to accommodate your employee’s medical marijuana use, but the Americans with Disabilities Act (ADA) does not require you to reasonably accommodate current unlawful drug use. Employees who claim disability discrimination for their medical marijuana use may attempt to file under the ADA. However, the ADA excludes current illegal drug users from protection; therefore, employers are free to conduct drug tests on employees, subject to certain limitations, to detect the presence of illegal drug use.

    Refer to your state’s laws on employer rights and medical marijuana law. Additionally, you may want to update your policies to ensure you are clear about whether you will accommodate marijuana use in the workplace and the subsequent action should an employee be found using marijuana.

    Finally, keep in mind that this issue can be complicated. When in doubt, seek legal counsel to ensure compliance.

    Q&A provided by ThinkHR, powering the UST HR Workplace for nonprofit HR teams. Have HR questions? Sign your nonprofit up for a free 30-day trial here.

    Terms Of Use

    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.

    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.