Question: We have an employee claiming they shouldn’t be classified as exempt from overtime. If it turns out they’re right, what are the penalties for misclassification?

Answer: The cost of misclassification can be steep and will depend on several factors, such as how many employees are misclassified, how much extra money they would have been paid if properly classified, how the misclassification is discovered, and how your employees react to it. 

Generally, if an employee goes to the federal Department of Labor and says they have been misclassified, the DOL will investigate, and they will very likely look at all your employee classifications. Any employee who the DOL determines should have been paid overtime in the last two years will be found to have been underpaid, and the organization will owe that money to the employee now (or three years’ worth if the misclassification is found to be “willful”). The organization will also owe them liquidated damages equal to the amount of money owed. So, if an employee should have been paid $2,000 in overtime, the organization will owe them $4,000. The organization will also owe taxes on those wages and interest on those taxes. 

Additionally, many states have their own overtime laws, and in most cases the organization can be held liable under both federal and state law, meaning not only would the employee be owed double under the FLSA, but also any liquidated damages under state law (which could easily triple the original amount). And if you are in a state with late payment penalties, you could owe up to 30 days’ worth of the employee’s pay on top of the already discussed damages. There’s also a very good chance the organization will be held liable for any related attorney’s fees–both your own and the employee’s.

Finally, there are potential federal civil penalties of $2,050 per violation (generally one penalty per misclassified employee), state penalties (which will vary), and in some cases the potential for jail time. As soon as judgment is rendered in favor of the employee, statutory interest will begin to accrue on the amount owed–generally 10% per year.

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.

The end of the year often brings a whirlwind of professional and family obligations – especially for nonprofit leaders.  You may find yourself juggling end-of-year fundraising drives, community events and treasured family holiday traditions.

But there’s also a key step you should take during November and December to set up your nonprofit for success in 2025—spend dedicated time reviewing your strategic plan.  In fact, this may be one of the most valuable gifts you can give your organization during these busy months.  The following questions can be a smart way to get started:

  • Where does your nonprofit stand in terms of meeting its goals for 2024?
  • Where did your group successfully meet its mission?  Were there areas where your organization missed the mark?
  • Do certain goals need to be broken into smaller parts in 2025 to bring a better chance of long-term success?
  • Do you see new opportunities or challenges in the coming year that might impact your organization’s long-term strategic plan?

Ways To “Crowdsource” Your Year-End Review

Of course, revisiting your 2024 strategic plan doesn’t need to be a solo exercise.  In fact, tackling this important review on your own can easily result in tunnel vision and missed opportunities for the coming year.

  • Consider having various members of your leadership team conduct a review of segments of your nonprofit’s strategic plan.  Getting year-end feedback from different organization leaders can help generate new solutions which might not have been apparent during earlier planning sessions.
  • Ask for input from team members who worked directly on certain programs.  People working on the front lines of your organization may have practical insights which could help refine your approach to challenges in the coming year. 
  • Reach out to stakeholders within your community to see how local conditions may be impacting allied nonprofit organizations.  Is there a change in the community which they’ve successfully addressed?  Are they choosing to focus on a new challenge which emerged within the past year?

Working with your nonprofit’s leadership team, frontline employees, and community stakeholders can give you a more robust, 360-degree picture of how successfully your organization performed in 2024.  In turn, that can give you a clearer vision of your priorities in 2025.

SMART Strategy Adjustments Can Help Kickstart 2025

After a solid review of the current year’s strategic plan and the results your nonprofit achieved, the next step is using the SMART strategy to fine-tune your organization’s priorities for the new year.  This includes setting up goals that are:

SPECIFIC:  If you currently serve 100 members of your community through an outreach program, your goal could be to serve 20% more people in 2025.

MEASUREABLE:  When writing your goal of serving 20% more people, be sure to define what exactly qualifies as “serving 20% more people.”  Is it a total of 20% more community members attending a certain type of event across the entire year?  Is it an average of 20% more people consistently participating each month? 

ACHIEVEABLE:  Deliberately ambitious goals are intended to inspire staff members.  However, if your team believes there’s no realistic way they can meet the new goal, it may have the opposite effect.  In essence, you’re looking for the sweet spot between a goal which is so easily achievable that your nonprofit doesn’t have to do much to meet it and a goal which is so lofty that people stop trying because it’s too overwhelming.

RELEVANT:  Given the resource limitations often facing nonprofits, it’s critical to make sure your organization’s goals squarely target your mission.  It can often be tempting to branch into new tangents in the hope of reaching new audiences.  But it’s important to take a step back to make sure your goals reinforce your mission rather than spreading your organization too thin.

It’s not uncommon to have a wish list of goals that exceeds your nonprofit’s resources.  One helpful way to narrow down potential strategic goals is to list all goals on a sheet of paper with “Start”, “Stop” and “Keep” boxes next to each one.  Encourage multiple staff members, board members, and other organization leaders to quickly mark one of the boxes for each goal.  Tallying total responses can be an illuminating way to rank the priority of each potential goal.

TIME-BASED:  Setting a specific timeline for each goal can help team members measure their progress.  Consider breaking larger strategic goals into a series of short-term priorities to be accomplished within tighter deadlines.  This can help staff members focus on the basic steps during each short-term priority. 

It’s also a good way to more easily monitor whether the team is on track to meet the larger strategic goal – by spotting missed deadlines when there’s still time to correct your overall approach.

Taking time at the end of the year to evaluate where your organization will land on 2024 goals can be the key to confidently starting 2025 off on the right foot.

In addition to fine-tuning your organization’s strategy and goals for the coming year, November and December can also bring about complex HR questions as your nonprofit closes out 2024.  UST can help you find reliable answers on questions about employee paperwork, whether a staff member should be categorized as full-time or part-time or how your HR staff should handle changing regulations in your state. Sign up today for a free 60-day trial of UST HR Workplace!

SOURCES:

“How To Set Strategic Goals At Year End For Your Nonprofit,” Globalgiving.org, 11/20/23

“Annual Planning for Nonprofits: How To Set Your Organization Up For Success,” Trifecta Advising, viewed 10/28/24

With societal shifts, technological advancements, and economic fluctuations, nonprofit leaders must stay ahead of the curve to drive meaningful impact. For CEOs and board members, understanding these trends is crucial for steering their organizations effectively. In this blog, we explore the key trends reshaping the nonprofit landscape and offer insights to help leaders succeed in this dynamic environment.

Understanding the Current Nonprofit Landscape

The nonprofit sector is experiencing significant transformations driven by several key factors:

  1. Increased Demand for Services: Economic hardships and social issues have amplified the demand for nonprofit services, requiring organizations to scale their operations more than usual.
  2. Technological Advancements: Technology is revolutionizing how nonprofits operate, from fundraising and outreach to program delivery and impact measurement.
  3. Changing Donor Expectations: Today’s donors are more informed and expect transparency, accountability, and measurable impacts from the organizations they support.
  4. Diverse Funding Sources: Nonprofits are diversifying their funding streams, exploring innovative approaches such as social enterprises, partnerships, and digital fundraising.

Key Trends Shaping the Future of Nonprofits

1. Leveraging Data and Analytics

Data-driven decision-making is becoming essential for nonprofits. By harnessing advanced analytics, organizations can gain valuable insights into donor behavior, program effectiveness, and market trends. This knowledge empowers leaders to make informed strategic decisions, optimize resources, and enhance their impact.

2. Prioritizing Diversity, Equity, and Inclusion (DEI)

DEI is no longer a mere buzzword; it’s a necessity. Nonprofit leaders are increasingly prioritizing diversity within their teams and boards, ensuring equitable access to services, and advocating for systemic change. Organizations that champion DEI not only improve their internal culture but also strengthen their community relationships and credibility.

3. Adopting Agile Approaches

Agility is crucial in the nonprofit sector, especially when responding to unforeseen challenges or emergencies. Agile methodologies enable organizations to adapt quickly, experiment with new ideas, and drive continuous improvement. Nonprofit CEOs should foster a culture of innovation, encouraging teams to pilot projects, learn from failures, and repeat successful initiatives.

4. Enhancing Digital Engagement

With the rise of digital communication, nonprofits must meet their audiences where they are—online. Social media, email campaigns, and virtual events are powerful tools for engaging stakeholders, spreading awareness, and driving fundraising efforts. A robust digital strategy helps nonprofits build a strong online presence and reach wider audiences.

5. Strengthening Leadership and Governance

Effective leadership and governance are cornerstones of a successful nonprofit. CEOs and board members need to invest in leadership development, succession planning, and board diversification to ensure long-term sustainability. Building a resilient organization starts with having the right people at the helm.

Navigating the changing nonprofit landscape requires visionary leadership, adaptability, and a deep understanding of emerging trends. By leveraging data, prioritizing DEI, adopting agile practices, enhancing digital engagement, and strengthening leadership, nonprofit CEOs can drive their organizations toward greater impact and sustainability.

To support your efforts in building a safe, compliant, and productive workplace, we invite you to sign up for UST’s Free 60-Day HR Trial. The UST HR Workplace is a cloud-based platform offering HR tools, templates, and trainings specifically designed for nonprofit employers. Discover how our resources can empower your organization to thrive in today’s dynamic environment.

Stay informed, stay agile, and lead your nonprofit to success!

Question: How do we know when an employee is ready for a leadership role?

Answer: It’s good you’re thinking about this. Promotions into leadership too often come with little discussion about how the leadership role will be different from the current role or whether the employee has the interest or skill set to be an effective leader.

Fortunately, there are indicators that someone is likely ready for a leadership role. These include (among other traits) their ability to communicate effectively, inspire and motivate others, resolve conflicts while minimizing drama, adapt to change, and take accountability for the work of their team.

If there’s an employee you’d like to promote, but they haven’t expressed an interest in a leadership role, schedule a meeting with them to talk about the idea. Share why you feel they are ready for the role and what it means to be a leader within your organization. Ask about their career goals and how they would like to advance within the organization. Let the employee know how you can support them with these goals, whether or not they move into a leadership track.

If the employee is interested in leadership, provide them a clear picture of the responsibilities and the training and guidance they’ll receive as they move into the new role. Most employees who are new to leadership will need extra support as they transition into a position of greater responsibility.

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.

Hiring for a nonprofit organization comes with its own set of challenges. With smaller budgets, limited resources, and a competitive market, nonprofits need to think creatively to attract top-tier talent. It’s not just about finding the right strategies—it’s about optimizing the recruiting process to connect with candidates who align with your mission and values. From leveraging digital tools to tapping into mission-driven networks, here are some unconventional hiring strategies, coupled with search optimization tactics, that nonprofits can use to build a passionate and diverse workforce.

1) Leverage Social Media Platforms

Social media can do more than just promote your programs. It can be a powerful tool for connecting with mission-aligned individuals when recruiting. Platforms like LinkedIn, Facebook, and even Instagram can help share your organization’s story, showcase its impact, and promote job openings. Posting about your organization’s culture and mission or creating employee spotlights to share on social media will engage potential candidates. This approach not only attracts talent but also creates a sense of community and interest around your organization.

2) Recruit on Nonprofit Job Platforms and Forums

Traditional job search platforms have their place, but for hiring in the nonprofit sector, explore specialized platforms such as Idealist, Work for Good, or Bridgespan. Additionally, LinkedIn offers nonprofit and volunteer-focused groups to reach professionals seeking purpose-driven work. These job boards, forums, and networks cater specifically to a talent pool that is already aligned to the mission of nonprofit organizations.

3)  Host Mission-Driven Networking Events

Networking events specifically designed for those interested in nonprofit work are an excellent way to meet potential candidates in a more personal setting. These events are good for meeting potential volunteers or employees. Networking events can be something more than the typical “Meet and Greet” format. Interactive workshops and panel discussions will give interested candidates the opportunity to hear from nonprofit leaders about the everyday running of and involvement in their organization.  A volunteer recruitment fair is a good way to attract volunteers and identify potential hires informally. Networking events help create an environment where candidates can engage with the organization’s mission, allowing nonprofits to connect with individuals who share their values.

4) Partner with Local Colleges and Universities

Universities and colleges often have untapped potential for recruitment. While using college job boards is one common strategy, take it a step further by creating direct partnerships with academic departments or student organizations. Connect with student groups focused on social causes, public administration, or environmental studies to share internship and job opportunities. Offer guest lectures or workshops in relevant classes, where your nonprofit can be presented as an ideal employer for socially-conscious graduates. These partnerships help position your nonprofit as a destination for students who want to launch their careers in a meaningful way.

5) Focus on Culture and Employee Value Proposition

Working at a nonprofit offers a unique organizational culture that attracts many job candidates due to the positive impact the organization makes. To draw top talent, highlight the benefits of being part of a mission-driven organization. Your recruitment materials should showcase what makes your nonprofit a rewarding place to work. Emphasize flexible work arrangements, opportunities for professional growth, and the chance to make a tangible impact. You can also incorporate testimonials from current employees about their love for working at your nonprofit, as these can be highly motivating for potential applicants. Clearly define your Employee Value Proposition (EVP) in job postings and on your website. In today’s world, where people increasingly seek meaningful work, a compelling culture can be a significant recruitment advantage.

6) Hiring For a More Diverse Workforce

A diverse workforce introduces fresh perspectives and creativity while fostering a deeper understanding of various communities. This enriches an organization and enhances its capacity to achieve its mission effectively. There are many job boards and platforms dedicated to connecting diverse candidates with employers who value inclusion. These platforms will broaden your recruitment reach to connect with candidates from diverse backgrounds. Some of those boards are DiversityJobs, Workforce Diversity Network, Jopwell, and PowerToFly. To attract diverse candidates, use engaging hashtags like #DiversityHiring or #WomenInNonprofits when posting about open positions on social media. For college recruiting, consider partnering with Historically Black Colleges and Universities (HBCUs), Hispanic-Serving Institutions (HSIs), and Tribal Colleges to broaden your reach and connect with talented students.

Recruiting for nonprofits demands creativity and a readiness to explore non-traditional avenues. By harnessing the power of social media, connecting with universities and diversity-focused job boards, and cultivating community relationships, nonprofits can draw in diverse, motivated talent. This approach builds a team that genuinely represents and advocates for the communities served.

Hiring the right candidates is just the beginning of the employment journey. UST HR Workplace  is here to make it easier for nonprofits to get the support they need. Sign up now for UST’s Free 60-day HR Trial and enjoy access to our live HR certified consultants, over 300 on-demand training courses and an extensive compliance library with UST membership. Enjoy the beneficial insights and various resources that help empower you with the right tools and training to take better care of your team once your candidate says yes to their offer letter.

Sources:

The Power Of Social Media In Recruiting (forbes.com)

12 Innovative Recruiting Strategies That Savvy Companies are Using (linkedin.com)

14 Recruitment Strategies to Attract Best Talent in 2024

Employee Value Proposition (EVP): All You Need to Know in 2024 (aihr.com)

11 Recruitment Strategies to Attract Top Talent

Social media has become an indispensable tool for nonprofit organizations in today’s digital age. It offers unprecedented opportunities to engage with communities, amplify your message, and drive impactful change. However, navigating this rapidly evolving landscape requires strategy, creativity, and a keen understanding of your audience.

The Power of Social Media for Nonprofits

Social media platforms like Facebook, X (formerly Twitter), Instagram, and LinkedIn have transformed how nonprofits connect with their supporters. Here are a few reasons social media is crucial for nonprofit engagement:

  • Reach a Wider Audience: Social media allows you to reach a global audience at little to no cost. With the right content, your message can travel far beyond your immediate network.
  • Community Building: Platforms provide a space for your supporters to engage, share experiences, and build a community around your cause.
  • Real-Time Feedback: Engagement via comments and reactions offer valuable insights into how your message resonates with your audience.
  • Storytelling: Visual and narrative content can powerfully convey your mission and impact, helping to foster a deeper emotional connection with your supporters.

Strategies for Effective Engagement

To harness the full potential of social media, consider the following strategies:

1. Define Your Goals: Before you begin posting, outline clear objectives for what you want to achieve. Whether it’s increasing awareness, boosting donations, or growing your volunteer base, having clear goals will guide your content strategy.

2. Know Your Audience: Understand who your audience is and tailor your messaging to their interests and preferences. Use analytics tools to gain insights into your followers’ demographics and engagement patterns.

3. Craft Compelling Content: Create content that resonates with your audience. Use storytelling to highlight personal stories of those impacted by your work, share success stories, and showcase behind-the-scenes glimpses of your organization’s efforts.

4. Leverage Visuals: Visual content is more likely to be shared and remembered. Use images, infographics, and videos to grab the viewer’s attention and communicate your message more effectively.

5. Engage Actively: Social media is not just about broadcasting messages; it’s about fostering dialogue. Respond to comments, engage in conversations, and show appreciation for your supporters’ contributions.

6. Collaborate and Network: Partner with influencers and other organizations to expand your reach. Cross-promotions can introduce your cause to new audiences.

7. Monitor and Adapt: Regularly review your social media performance to understand what is working and what items may need improvement. Be ready to adapt your strategy based on these insights.

Overcoming Challenges

While social media offers numerous opportunities, it also presents challenges such as managing negative feedback, keeping up with platform changes, and balancing time and resources. It’s important to have a crisis management plan and a dedicated team or volunteer to monitor and manage your social media presence.

Social media holds immense potential for nonprofits to engage more deeply with their communities and drive their missions forward. By implementing strategic, audience-focused approaches, your organization can create meaningful connections and foster long-term support.

Ready to learn more? Read more UST blogs here on how we can help support the growth of your nonprofit.

Question: It seems like we’ve had a lot of candidates ghosting us recently. Is there anything we can do to prevent this?

Answer: Nothing you do will prevent ghosting altogether, but there are steps you can take to keep candidates engaged and discourage them from just disappearing on you:

  • Start with a clear, descriptive job posting so they understand exactly what they are applying for.
  • Have a transparent recruitment process so every candidate knows what to expect even before they apply. Provide an outline of the interview process on your website and an estimated timeframe.
  • Communicate frequently throughout the process, especially if your process gets delayed. Even if you don’t have an update about their advancement, candidates appreciate knowing your timeline. For example, you could share something like, “We’ll finish the first round of interviews next week and will reach out the following week to let you know whether you’ll be moving to the next round.”
  • Encourage questions from candidates and answer them as quickly and thoroughly as you can.
  • Confirm with the candidate that they are still interested in the role as they move through the process.
  • Remove unnecessary steps that aren’t adding to the overall experience or won’t affect the final decision.

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.

Ever since the Great Resignation reared its head in 2021, nonprofits have been struggling to recruit and retain staff. The nonprofit sector thrives on passion and purpose. Employees dedicate their time and energy to causes they care about and are often driven by a desire to make a difference. However, passion alone isn’t enough to sustain long-term commitment or satisfaction in their roles. Just like their counterparts in the for-profit world, opportunities for growth and development help nonprofit employees stay engaged, feel valued, and continue to contribute at a high level.

On the surface, employee development is straightforward: Train employees to improve their existing skillset and build new skills on top of that. But there are benefits beyond training. Employee development is also a way to maintain the success of organizations for the future. As organizations continue to grow, or as Baby Boomers retire and leave, existing employees are the key to keeping organizations stable and engaged in their communities.

There are multiple benefits that can result from creating an organization that prioritizes employee development.

  • Engagement: Development opportunities show that the company values its employees, leading to higher job satisfaction and engagement.
  • Retention: Employees who feel they are growing and advancing are more likely to stay with the company long-term, stabilizing the workforce and reducing turnover costs.
  • Leadership: Cultivating internal talent to take on leadership roles ensures there is a steady pool of qualified leaders to step in to key positions when necessary.
  • Productivity: Skilled and well-trained employees are more efficient and can contribute to better overall performance.
  • Innovation: Employees exposed to new skills and ideas are more likely to innovate, bringing fresh perspectives and solutions to the company.
  • Strengthens Company Culture: Development programs contribute to a positive and growth-oriented company culture, fostering collaboration and a shared sense of purpose.
  • Cost Savings: Since it avoids recruitment costs and reduces the time needed for onboarding, internal development is often more cost-effective than replacing exiting employees.

The 2024 Workplace Learning Report from LinkedIn Learning notes that providing learning and development opportunities is the number one retention strategy executives planned to implement in 2024, with studies showing that companies with a learning culture have a 57% higher retention rate than companies that don’t. There are several ways to develop talent among your existing pool of employees. Some of the most impactful forms of employee development are free or cost little to provide – which is a plus for nonprofits which oftentimes have limited funds for training and development.

There are many ways to add to and advance the skillsets of employees—thereby having a long-lasting impact on your workforce and the long term success of your nonprofit.

  • Provide on-the-job training and workshops
    • Offer job-specific, skill-building programs (in-person or online) that help employees learn new techniques or sharpen their expertise.
    • The impact of training positively impacts performance by equipping them with essential skills and knowledge which enhances confidence and capability.
    • Allow employees to work in different departments or roles temporarily to broaden their skill sets and perspectives.
    • Organize internal or external workshops to provide learning opportunities on topics relevant to employees’ roles or career goals.
  • Career Development Plans
    • Work with employees to map out a long-term career path, including setting goals and identifying the skills they need to achieve them.
    • Meet with and coach employees on a quarterly basis to go over their development plans and keep them on track toward accomplishing their goals.
  • Train today’s employees to become tomorrow’s leaders
    • Provide training focused on developing leadership skills, preparing high-potential employees for managerial or executive roles
  • Network Opportunities
    • Encourage employees to attend industry conferences, trade shows, and networking events to expand their professional networks and knowledge.
  • Mentor and Coaching Opportunities
    • Develop a formal mentoring program to help develop potential leaders on the team. If your nonprofit cannot support a mentoring program, consider partnering with other local organizations or businesses to find professionals to partner with. Allow time during normal work hours for mentoring sessions.
  • Online Learning Platforms
    • Give access to e-learning platforms (e.g., Udemy, LinkedIn Learning, Coursera) where employees can take courses at their own pace.

Whether it’s through formal training programs, mentorship or leadership development, nonprofits can create a culture that prioritizes the growth and development of their staff. The long term benefits of encouraging development will ultimately benefit the organization through employee satisfaction, retention, and organizational success. Investing in people is investing in the future of the nonprofit itself.

UST understands that employee retention is critical in helping nonprofits achieve their missions. Leveraging the right strategies and building skill sets helps nonprofits retain engaged employees which leads to a more successful mission. For more ideas on ways to up-skill your valued employees, take advantage of UST’s Free 60-day HR Trial. UST HR Workplace is a dynamic cloud-based platform offering HR tools, templates, and trainings.

Sources:

How Professional Development Can Boost Employee Engagement – Wharton Online (upenn.edu)

https://learning.linkedin.com/resources/workplace-learning-report

https://ditasolutions.com/articles/the-role-of-training-in-employee-engagement-and-retention

In today’s evolving nonprofit sector, fostering diversity and inclusion within the workforce is not just a moral imperative but also a strategic advantage. While the sector is racially diverse, there remains a significant gap in leadership representation. This blog post will explore the current state of workforce diversity in nonprofits, the benefits of a diverse and inclusive workforce, and practical steps your organization can take to close the diversity gap.

The Diversity Gap in Nonprofit Leadership

Despite the nonprofit sector’s overall diversity, leadership ranks do not reflect this variety. According to data from 59,550 public charities that shared demographic data between July 2019 and January 20241:

  • 47% of all staff identify as white, 24% as Black/African American, 19% as Hispanic/Latino, 6% as Asian American/Pacific Islander, 1% as Native American, and 4% as multiracial.
  • 70% of CEOs/executive directors (EDs) and 66% of board members identify as white.
  • Only 15% of CEOs/EDs are Black and 6% are Latino. These leaders are more often found in smaller organizations—with 44% of nonprofits with expenses under $50,000 led by BIPOC individuals, compared to 27% for those with expenses above $25 million.

This suggests that while people of color are well-represented at the staff level, they are disproportionately confined to smaller organizations and underrepresented in larger, wealthier nonprofits. The discrepancy raises important questions about biases in hiring practices and opportunities afforded to white individuals early in their careers.

Benefits of a Diverse and Inclusive Workforce

A diverse and inclusive nonprofit workforce offers numerous benefits:

  • Enhanced Innovation: Diverse perspectives foster creativity and innovation, essential for solving complex social issues.
  • Improved Decision-Making: Inclusive teams make better decisions by considering a wider array of viewpoints and experiences.
  • Broader Community Reach: A diverse workforce can better understand and serve varied communities, enhancing the organization’s impact and relevance.
  • Increased Employee Engagement: Inclusive workplaces tend to have higher employee satisfaction and retention rates.

Six Steps to Building a Diverse and Inclusive Workforce

1. Conduct a Diversity Audit: Start by assessing your current diversity levels at all organizational levels. Identify gaps and areas for improvement to set clear, measurable goals.

2. Foster an Inclusive Culture: Create an environment where all employees feel valued and included. Encourage open dialogue about diversity and inclusion and implement policies that support a respectful and collaborative workplace.

3. Revise Recruitment and Hiring Practices: Ensure your recruitment processes attract diverse candidates. Use blind recruitment techniques to minimize biases and create diverse hiring panels to make more inclusive hiring decisions.

4. Provide DEI Training and Development: Educate your staff about the importance of diversity, equity, and inclusion. Offer regular training sessions and workshops. UST HR Workplace offers 300+ employee training courses, including DEI training and awareness.

5. Establish Mentorship and Sponsorship Programs: Support underrepresented groups by establishing mentorship and sponsorship programs. These initiatives can help emerging leaders gain the skills and networks they need to advance in their careers.

6. Monitor Progress and Accountability: Regularly review and report on diversity and inclusion metrics. Hold leadership accountable for progress toward diversity goals and celebrate successes along the way.

Building a diverse and inclusive nonprofit workforce is crucial for creating impactful and sustainable change. By taking intentional steps to promote diversity and inclusion, your organization can improve its effectiveness and better serve the communities it aims to support.

Are you ready to transform your nonprofit workforce? Click here to start your free 60-day trial of UST HR Workplace. Access not only 300+ employee training courses, but live certified HR experts, an online employee handbook builder and much more.

Join us on this vital mission to champion diversity and inclusion within the nonprofit sector. Together, we can create a more equitable future for all.

Source

  1. https://blog.candid.org/post/diversity-in-nonprofit-sector-candid-demographic-data-report/

Question: We would like to add a working interview to our selection process. Is this permitted and are there other options to help us finalize our selection?

Answer: Yes, you can have a working interview as part of your selection process, but there’s a big caveat. If you have the candidate do “real work” that is useful to your business, you’ll need to hire them as a temporary employee, have them complete new hire paperwork, pay them at least the minimum wage, and then jump through any termination hoops if you don’t hire them. You can’t lawfully classify them as an independent contractor for this purpose. Here are a few more things keep in mind:

  • It will likely be most convenient for you to write a check to the candidate at the end of the working interview. But if not, make sure they get paid within the time frame required by your state’s final pay laws.
  • If a candidate is injured during the working interview, you may be liable for a workers’ compensation claim.
  • You’ll want to be clear with the candidate that the working interview is not an offer of employment. When the work is completed, give them a timeline for when they can expect to hear back from you.

If you’d prefer to avoid the hassle of hiring candidates as temporary employees, there are alternatives that can yield similar results. Here are two we recommend:

  • Test candidates’ skills by assigning them a task to complete. This task should be something that can be completed quickly and that doesn’t benefit the organization—it shouldn’t be work that needs to get done. For example, you could have them process part of last week’s (redacted) payroll or have them write a particular type of client communication that has already been sent.
  • Allow candidates to observe a current employee doing the job for an extended period. Job shadowing shows candidates what to expect in the role and what sorts of tasks they’d be expected to perform. This will help them gauge their likelihood of success in the role.

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.

It’s no secret that many employees are thinking about changing jobs these days. In fact, research from Microsoft and LinkedIn says that almost half of American workers are considering a switch to a new job in 2024. That’s even higher than the numbers seen during the “Great Resignation” during 2022. While budget limitations are a reality for nonprofit organizations, supporting mental wellness efforts can help create a supportive environment where a strong sense of belonging helps outweigh a smaller paycheck. HR professionals working at nonprofits can help build higher employee satisfaction and boost retention by implementing four strategies designed around mental health.

What does that look like in real-world terms? The answers are reducing stress, fostering meaningful connections within your organization and the greater community, encouraging physical activity and providing opportunities for employees to grow and shine on the job.

Here are four ways HR professionals can achieve these goals within a nonprofit organization:

1. Give employees an outlet for their stress through an Employee Assistance Plan (EAP): EAPs give your employees an opportunity to proactively access mental and emotional support before major issues develop.

  • Most EAPs offer counseling services at a low cost to employers.
  • Having access to an EAP helps increase loyalty, retention and the overall reported well-being of employees.

IMPORTANT:  HR professionals need to do their homework when picking an EAP.  Things to look at include cost per visit, how many visits will be covered and the ROI for the organization.

2. Help employees build meaningful connections through Employee Resource Groups (ERGs): ERGs allow employees with shared identities or backgrounds to connect and create a stronger feeling of belonging.

  • ERGs can cover any dimension of diversity including race, ethnicity, gender, sexual orientation, disability status and more.
  • ERGs can be an integral part of an organization’s Diversity, Equity and Inclusion (DEI) efforts. A key strategy is to align ERGs with your organization’s goals. In essence, an ERG should be a treasure of resources and an engine for change. The results would then be a powerful driver of your organization’s – and your employees’ – success.
  • If your nonprofit is too small to support its own ERG, consider connecting staff with community-wide ERGs – possibly with a Chamber of Commerce or United Way.

3. Encourage physical activity to help strengthen mental health: Exercise has long been associated with higher levels of mental health. It provides stress relief and enhances overall well-being.

  • Create policies that allow time during the workday for physical activity. Can lunches or breaks be extended for walking time? Could your organization sponsor in-house yoga sessions before or after work?
  • Try promoting “walking meetings” to get employees up and moving during their workday. This can also have the added benefit of enhancing connections between employees as they participate in a shared physical activity.
  • If your organization has the space, set up a “quiet room” with stretching and/or reflecting space, soft lighting and a reading or journaling nook. Having a space for employees to reset or decompress can be a thoughtful addition – especially for front-line employees who may face emotionally-charged situations as they deal with clients. It’s a simple way to show employees how much you value them.

4. Give employees opportunities to shine on the job and help them build new skills to boost their career: Research shows that employees who rate themselves as “thriving” in their job because their efforts are recognized, and they have opportunities to build new skills are three times less likely to switch jobs.

  • Especially for highly valued employees, consider how you could better use their strengths and give them opportunities to grow through new experiences. Could you assign “team leader” responsibilities or tap them for more prominent assignments during high-profile community events?
  • Think of training paths which would allow employees to job shadow other positions within your nonprofit.  This can help build in job redundancy for organizations with a small staff while also rewarding high-performing employees by teaching them new skills that could help them grow in their career.
  • Not all growth opportunities have to be within your nonprofit. Could employees expand their skills by serving on a community committee or board? Advocating for these types of opportunities can signal your faith in the employee while also increasing your organization’s visibility in the community.

For most nonprofits, focusing on financial compensation just isn’t a winning strategy when it comes to employee retention. Incorporating higher levels of mental health benefits which build a sense of belonging and employee engagement, on the other hand, can be a solid strategy to help you retain the key contributors to your organization.

UST understands the pressure nonprofits face when it comes to employee retention. For more ideas on ways to build a benefit package that includes solid mental and emotional rewards for your valued employees, take advantage of UST’s Free 60-day HR Trial. UST HR Workplace is a dynamic cloud-based platform offering HR tools, templates, and trainings. It empowers nonprofit employers to cultivate a safe, compliant, and productive workplace environment.

RESOURCES:

https://www.cnbc.com/2024/05/08/nearly-50percent-of-people-are-considering-leaving-their-jobs-in-2024.html

https://www.forbes.com/sites/forbesbusinesscouncil/2023/10/16/why-proactive-eaps-are-crucial-for-attracting-and-retaining-top-talent

https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/effective-employee-resource-groups-are-key-to-inclusion-at-work-heres-how-to-get-them-right

https://www.gallup.com/workplace/358082/struggling-suffering-employees-twice-likely-leave.aspx

In the nonprofit sector, high turnover rates can disrupt organizational stability, morale, and mission effectiveness. A robust and supportive work culture is crucial for retaining dedicated staff and ensuring long-term success. According to Forbes, “The government reported a record number of Americans, 70 million, left their jobs in 2021, including 47.8 million departures counted as voluntary. This “Great Resignation” has left employers scrambling to fill vacancies, a problem that could get worse before it gets better.” This blog post explores the importance of cultivating a positive nonprofit work culture and offers actionable strategies to combat turnover.

Understanding the Challenge

Unlike the for-profit world, where financial incentives might be more prominent, nonprofit employees are often driven by passion and commitment to a cause. While this dedication is invaluable, it doesn’t shield nonprofits from the challenges of employee retention. High turnover can stem from burnout, lack of recognition, limited career growth opportunities, and inadequate support systems.

The Importance of a Supportive Work Culture

A supportive work culture in nonprofits fosters an environment where employees feel valued, heard, and empowered. It can lead to higher job satisfaction, better team collaboration, and enhanced productivity. Most importantly, it helps retain top talent, thereby reducing turnover rates and ensuring the continuity of the organization’s mission.

Benefits of a Positive Nonprofit Work Culture

  • Improved Employee Morale: When employees feel supported, their job satisfaction increases.
  • Increased Retention: A positive work environment reduces the likelihood of employees seeking opportunities elsewhere.
  • Enhanced Collaboration: Supportive cultures promote teamwork and open communication, leading to more effective and innovative solutions.
  • Mission Continuity: Retaining knowledgeable staff ensures consistent progress towards achieving the organization’s goals.

Building a supportive work culture in nonprofits is not just a nice-to-have, it’s a necessity for retaining passionate and dedicated staff. By prioritizing employee well-being, fostering open communication, recognizing contributions, investing in development, encouraging team building, leading by example, and ensuring fair compensation, nonprofit leaders and HR managers can create an environment where employees thrive.

Ready to take the first step towards building a more supportive work culture in your nonprofit? Start by assessing your current practices and identifying areas for improvement. Remember, a little effort goes a long way in making your organization a place where employees are happy, engaged, and committed to making a difference.

Click here to read more blogs on how to support your team’s mental health.

Source

https://www.forbes.com/sites/forbesbooksauthors/2022/03/24/a-strong-company-culture-is-the-best-retention-strategy-amid-high-turnover/?sh=7bb55ed244f5

Question: What can we do to reduce turnover and retain employees?

Answer: High turnover can quickly become costly. We recommend the following practices to increase retention:

  • Pick the right people in the first place. Put thought and care into your recruitment and interview procedures. The more time you and other employees can spend with candidates, the more certain you’ll be that they believe in your mission, understand the challenges of the position, and want to contribute to your success.
  • Make sure your compensation and benefits remain competitive. This is a tall order and may squeeze your bottom line in ways that make you uncomfortable, but it’s necessary if retention is at the top of your priority list. Make it a goal to do a yearly analysis of your total compensation package to ensure it’s at least keeping up with the market. Many employers that know they can’t offer competitive pay instead offer other compelling benefits, like generous paid time off and the ability to work from home.
  • Provide your employees with opportunities for professional growth. Talk to them about their career goals, develop and share career paths for their roles, and offer training and educational programs for those interested.
  • Be appreciative. A little gratitude can go a long way, and you can show it in multiple ways—from flexibility when employees need it to a willingness to hear out ideas to employee appreciation programs. Even a simple thank you can work wonders.
  • Investigate why people are leaving and look for themes. Engagement surveys, stay interviews, and exit interviews are useful tools for gauging employee satisfaction and understanding common pain points and frustrations.
  • Create an environment people enjoy, one that encourages healthy boundaries between work and personal time, roots out any bias, discrimination, or toxic behaviors, and facilitates opportunities for employees to socialize and form friendships.

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.

Most nonprofit employees bring a passion to their work.  They strongly believe in the mission of their organization and generally pour their heart and soul into their jobs daily. 

While this higher level of dedication can be a blessing to your nonprofit, it might also drain the mental health reserves of those same hard-working employees.  After all, even batteries need to be recharged.

The emotional well-being of employees – especially for those on the frontlines of your organization – works in much the same way:

  •  They make emotional withdrawals while assisting clients.
  •  They are frequently tasked with achieving more while having fewer resources.   
  • The financial constraints of nonprofits budgets can also increase employee stress levels. Whether it’s lower than typical pay that doesn’t cover everyday expenses due to inflation or perhaps costly expenses at home, the impact is real.

It can quickly add up to a mental health crisis for nonprofit employees.  Here are five practical solutions your organization can implement to make a difference for your employees.

1. Train managers on mental health issues and the resources available.  Your managers and frontline supervisors are often the key to implementing new policies and creating a supportive atmosphere.

    Studies show that training supervisors and managers about employee wellness and mental health helps those staff members better support their employees and more quickly identify signs of stress and mental health issues.

    And, it doesn’t have to eat up a lot of their time.  As little as 3 hours of training can help increase awareness of mental health and make your managers and supervisors more motivated to promote mental wellbeing for their employees.

    2. Increase employee options for autonomy and flexibility.  Giving employees more control over how and when they do their job can directly increase satisfaction and mental health.  An employee who feels empowered to do their job without excessive oversight is often more motivated – which can lead to enhanced performance for your organization.

    At the same time, certain employees may value job flexibility over other options due to their family circumstances.  A frontline employee with small children might appreciate the opportunity to take advantage of remote working options if their job doesn’t require in-person meetings with your nonprofit’s audience.

    3. Regularly share what mental health benefit options are available utilizing multiple channels.  If mental health benefits are only communicated during your nonprofit’s open enrollment window, they’re not likely to be front of mind or highly utilized when employees might need them. 

    Instead, make it a priority to post flyers in employee break rooms about your mental health care options (or free options from organizations such as the National Alliance on Mental Illness [NAMI]).

    Encourage managers to highlight mental health care benefits as they see employees facing challenging situations. And to help eliminate the stigma of using mental health benefits, ask the leaders of your nonprofit to communicate the importance of using available benefits to help all employees feel more comfortable reaching out for help when they’re stressed or overwhelmed.

    4. Emphasize work/life balance and self-care.  Your employees bring a passion to their job.  They feel a sense of urgency to serve your community and make a difference.  Many work long hours, take on additional responsibilities outside of the scope of their job or feel they need to be available 24/7.

    But that constant level of commitment often cannot be sustained without a healthy work/life balance. Emphasizing things like family time, making exercise a priority, getting enough sleep and taking care of themselves in general are great ways to help your employees switch off and recharge.

    5. Be mindful of burnout and actively intervene to help employees take a break from stressful situations.  Burnout is a real concern – especially for many of the top performers at your nonprofit. In a 2023 McKinsey survey of nonprofits, 88% of them reported stress levels at the “orange” or “red” level.  In those circumstances, burnout is a common result.

    Nonprofit work can be a balancing act.  The passion your employees bring to their jobs can be extremely fulfilling.  But at the same time, it can lead to emotional exhaustion – especially when dealing with challenging or unchanging social situations.

    Encourage managers and frontline supervisors to pay attention to employees working at an exceptionally high level for an extended period.  Provide them with extra flexibility to step away from their job functions for a few days.  Think of flexible ways you can reward them with work/life balance solutions to show your appreciation for their hard work.

    Prioritizing mental health shows your employees you value their contributions.  It’s a smart way to reward the passions they bring to your cause … while helping your nonprofit function at the highest levels.

    UST can help you focus on your mission while supporting your HR and financial needs.  Take advantage of UST’s Free 60-day HR Trial and discover how we can help your nonprofit manage your employees’ mental health needs. With UST HR Workplace, access Live Certified HR Experts, Work-from-Home Resources, 300+ Employee Training Courses, Thousands of Downloadable Forms & Checklists, an Online Employee Handbook Builder, and Job Description Tools. Our HR support lightens your workload, promoting better mental health so you can focus on what truly matters – your mission.

    RESOURCES:

    Sciencedirect.com

    Psycnet.apa.org

    Selfdeterminationtheory.org

    McKinsey.com

    McKinsey.com

    Nonprofit professionals are the backbone of countless community initiatives and philanthropic efforts, often going above and beyond to make a difference. However, this dedication can lead to a hidden threat: burnout. While passion drives many in the nonprofit sector, it can also lead to mental and physical exhaustion. We aim to shed light on nonprofit burnout and offer actionable strategies for mental wellness.

    Understanding Nonprofit Burnout

    Burnout is a state of emotional, physical, and mental exhaustion caused by prolonged stress. For nonprofit professionals, burnout can manifest as fatigue, irritability, reduced performance, and feelings of helplessness.

    Why Nonprofit Professionals are Prone to Burnout

    • High Emotional Investment: Working closely with causes that matter deeply can be emotionally taxing.
    • Resource Constraints: Limited funding and staffing can lead to being overworked.
    • Constant Fundraising and Reporting: The pressure to secure funding and meet reporting requirements adds another layer of stress.
    • Work-Life Imbalance: The passion for the cause often blurs the line between work and personal life.

    Mental Wellness Strategies for Nonprofit Professionals

    To combat burnout, it’s crucial to adopt strategies that promote mental wellness. Feeling overwhelmed and on the verge of burnout? You’re not alone. The demands of the nonprofit sector can be immense. Here are six actionable strategies to combat burnout and prioritize your mental well-being, allowing you to continue making a positive impact with renewed energy and focus.

    1. Prioritize Self-Care: Self-care isn’t a luxury; it’s a necessity. Regular exercise, a balanced diet and sufficient sleep can significantly improve your mental and physical health.

    2. Set Boundaries: Create clear boundaries between work and personal life. Set specific work hours and stick to them. Turn off work notifications after hours to ensure you have time to recharge.

    3. Delegate Tasks: You don’t have to do everything yourself. Trust your team and delegate tasks where possible. This not only reduces your workload but also empowers your team members.

    4. Seek Professional Help: If you’re struggling with burnout, don’t hesitate to seek professional help. Therapists and counselors can provide coping strategies and a safe space to express your feelings.

    5. Foster a Supportive Work Environment: Cultivate a culture within your team that fosters open communication. Encourage your coworkers to comfortably share their struggles and seek support.

    6. Continuous Learning: Engage in employee training courses to enhance your skills and stay updated. This can help you feel more competent and confident in your role.

    While burnout in the nonprofit sector is a serious issue, it is not insurmountable. By prioritizing mental wellness and adopting the strategies outlined above, nonprofit professionals can continue to make a positive impact without sacrificing their well-being.

    Are you ready to take the next step in supporting your mental wellness and organizational efficiency? Sign up for UST’s free 60-day HR trial today! Gain access to live certified HR experts, work-from-home resources, over 300 employee training courses, downloadable forms and checklists, an online employee handbook builder, and job description tools.

    Get started with your free trial now!

    Remember, taking care of yourself is the first step in taking care of others.

    Question: We’ve been both super busy and understaffed recently. Is there anything we can do during this time to help our employees avoid extra stress or burnout before we can hire more employees?

    Answer:  Yes. Here are a few things you can do to make this time run as smoothly and stress-free as possible:

    Remove nonessential work duties: For the positions that seem most stretched, make a list of tasks that could be put on hold (or perhaps reassigned). You can invite input from employees, too, but I’d recommend acknowledging that they’re overwhelmed and saying that you’ll do your best to alleviate some of the pressure. Then hold off on nonessential tasks until business slows down or you’ve increased your headcount.

    Allow for flexible scheduling: If employees need to work longer hours on some days during the week, consider allowing them to work fewer hours on other days of the week. Note that some states have daily overtime, spread-of-hours, or split-shift laws.

    Budget for overtime: Employees may need to work extra hours to keep up with the current demands of their job, so allow them to work overtime if you (and they) can swing it. If you’re pretty sure overtime will be necessary, inform employees of that ahead of time, so they can plan accordingly.

    Ensure all equipment is fast and reliable: It’s important to identify, troubleshoot, and correct any slow or nonworking equipment issues (such as laptops, internet hardware, cash registers, or vehicles). If not resolved, these issues can slow down work and add to everyone’s stress.

    Look for ways to automate: Consider whether any of your employees’ manual and time-consuming tasks could be eliminated or simplified with the use of new or different technology.

    Increase safety protocols: Employee absences related to COVID have created a significant strain for many employers during the pandemic. Shoring up your safety protocols may reduce the risk of COVID-related absences because of sickness or exposure. Depending on your circumstances, examples include improving ventilation, encouraging or requiring vaccination, requiring employees to wear masks, and allowing employees to work remotely when possible.

    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, 350+ on-demand training courses, an extensive compliance library, and more.

    Nonprofit organizations – characterized by their commitment to social, charitable or educational missions – often operate under tight financial constraints. These constraints make it crucial to minimize overhead costs – expenses that are necessary to support the organization but do not directly contribute to its program activities. These costs include executive salaries, accounting fees, marketing expenses, fundraising costs and membership development.

    While these expenses are essential for maintaining operations, they can dilute the funds available for the core mission if not carefully managed. Generally, nonprofits allocate around 20% of their budget to overhead. By strategically reducing these costs, nonprofits can direct a larger portion of their resources towards impactful program activities, thereby enhancing overall efficiency and effectiveness.

    Below, we’ll briefly go over a few ways to effectively reduce overhead costs and streamline operations.

    Strategies for Overhead Reduction

    1. Reduce Physical Office Expenses

    The cost of maintaining physical office space is a significant part of overhead for many nonprofits. Exploring alternative office arrangements can yield substantial savings. Options like co-working spaces, telecommuting or fully virtual offices can drastically reduce or even eliminate expenses related to lease, utilities and office maintenance. Effective lease negotiations – armed with thorough market rate research – could also help in lowering costs.

    Nonprofits can ensure they are not overpaying for unused or underutilized space by regularly reassessing their space needs and optimizing office layouts. What’s more, by nurturing a culture that supports remote work, nonprofits can reduce the necessity for large office spaces, enabling a more flexible and responsive organizational structure.

    2. Embrace Green Practices

    Sustainable practices are increasingly important not only for environmental reasons but also for cost efficiency. Nonprofits can adopt energy-efficient measures like LED lighting, programmable thermostats and high-efficiency appliances to cut utility costs. Simple changes like implementing double-sided printing and using recycled materials can also reduce purchase costs and waste disposal fees. These environmentally friendly practices resonate well with donors and can enhance the organization’s public image. Additionally, obtaining certifications for sustainable practices can boost a nonprofit’s credibility and attractiveness to eco-conscious investors and grant-making bodies.

    3. Leverage Virtual Communication

    Advancements in technology have made virtual communication tools more effective and affordable. Nonprofits can capitalize on this by using video conferencing to reduce travel expenses, adopting online project management tools to enhance team efficiency and utilizing cloud-based platforms for real-time data sharing and collaboration. These tools reduce costs while also helping improve organizational agility and employee satisfaction by supporting flexible work arrangements. Further integration of these tools can foster a culture of innovation and help to attract tech-savvy volunteers and staff.

    4. Build a Volunteer Force

    Volunteers are a vital resource in reducing manpower costs. Developing a strong volunteer program can enable nonprofits to delegate administrative, operational and even some programmatic functions to skilled volunteers. This not only saves on labor costs but also strengthens community engagement and support. Effective volunteer management makes it so that volunteers are well-integrated into the organization’s culture and operations, maximizing their contributions and satisfaction.

    5. Go Digital

    The transition to digital operations can significantly cut costs associated with paper, printing and document storage. Embracing digital communications and marketing efforts – like newsletters, social media campaigns and annual reports – can reduce production and distribution costs while reaching a broader audience. Cloud computing solutions can also decrease IT infrastructure costs and enhance data security and accessibility. Adopting advanced analytics to monitor the effectiveness of digital strategies enables more targeted and efficient resource use.

    6. Renegotiate with Vendors

    Periodic renegotiation with vendors for services like internet, printing and supplies can prevent increased cost and secure more competitive pricing. Encouraging multiple bids for new contracts and regularly reviewing existing ones can improve terms and uncover cost-saving options. Additionally, establishing and maintaining long-term relationships with reliable vendors can lead to loyalty discounts and enhanced service quality. Strengthening these partnerships through consistent communication and feedback transforms them into valuable collaborations that extend beyond routine transactions.

    7. Seek Free and Discounted Resources

    Many businesses and organizations offer special pricing or donations for nonprofits, including software licenses, office supplies and professional services. Actively seeking these opportunities can drastically reduce operational costs. Government and private grants designed to support nonprofit administration can also offset overhead expenses, allowing more funds to be directed towards mission-related activities. Developing a strategy to regularly review and apply for new funding opportunities helps ensure that nonprofits continuously benefit from available resources, keeping their operations lean and focused on their mission.

    Streamline Nonprofit Operations for Greater Impact

    Efficiently managing overhead costs is critical for maximizing the resources dedicated to the mission-driven work of nonprofits. By implementing the strategies discussed above, nonprofits can enhance their operational efficiency, reduce expenses and ultimately increase their impact.

    Additionally, exploring resources like UST Trust – which helps nonprofits minimize HR liabilities and unemployment claims – can further allow organizations to focus on their primary goals without undue financial distractions. For more detailed guidance and support in managing overhead, fill out our Free Savings Analysis form and find out if UST Trust is right for your organization.

    Nonprofit organizations play a vital role in society, addressing various social, environmental, and humanitarian issues. However, running a nonprofit organization comes with many challenges, including limited resources, funding, and staff. Nonprofit leaders must constantly seek innovative ways to streamline their operations, cut costs, and maximize their impact and one way to achieve this is by adopting online software solutions.

    Online software solutions can help nonprofits address various challenges, such as financial management, HR support, and compliance. For instance, UST Workforce Solutions is designed to streamline your HR workflows while empowering your team and enhancing your employees’ development as your business expands. This approach ensures that nonprofits have sufficient funds to finance their operations and achieve their mission.

    Moreover, online software solutions provide tremendous HR support, which is essential in managing staff resources effectively. Nonprofit HR leaders can use these solutions to automate processes such as online training, employee handbook building, and job description builder. This approach frees up time and allows HR professionals to focus on more strategic tasks that contribute to the organization’s mission.

    Another benefit to nonprofits of adopting online software solutions is access to thought leadership related to employment matters. UST offers incredible value to its members through its expertise in employment laws and regulations. This expertise helps nonprofits to stay compliant with various HR laws and regulations while also minimizing legal risks.

    One of the primary challenges associated with online software is ensuring the security of your data. Nonprofits handle sensitive information, such as donor details and financial records, making data breaches a significant risk. It’s crucial to choose software providers that prioritize data security and offer robust encryption and access controls to protect your information.

    Implementing new software often requires training your staff on how to use the system effectively. This can be a time-consuming process, especially if your team is not tech-savvy. To mitigate this challenge, look for software providers that offer comprehensive training resources, such as tutorials and webinars, as well as customer support.

    If you are a nonprofit leader looking to streamline your operations, cut costs, and maximize your impact, UST offers online workforce solutions that can help you achieve your goals. Fill out the UST Free Saving Analysis form today and see which of our online solutions can help your nonprofit. Don’t just take our word for it, see what one of our satisfied partners—the Georgia Center of Nonprofits—has to say. “In practice, how many payables transform into literal assets? UST builds financial assets, provides tremendous HR support, and offers incredible thought leadership related to employment matters. As a CEO, I would find it difficult to replace the value that UST brings tour organization.” 

    Adopting online software solutions is a game-changer for nonprofit organizations. With UST’s online solutions, nonprofits can transform payables into literal assets, access live HR support, and enjoy incredible thought leadership related to employment matters. Nonprofit leaders should take advantage of these benefits and embrace online software solutions to maximize their impact. To learn more about how UST can support your organization, click here.

    Question: If business is slow, can we send employees home early?

    Answer:  Yes, you can send employees home early due to a lack of work. Exempt employees under the Fair Labor Standards Act (not entitled to overtime) would need to be paid their entire salary for the day. Nonexempt employees (those eligible for overtime) would generally only need to be paid for actual hours worked.  

    However, if you operate in California, Connecticut, D.C., New Hampshire, New Jersey, New York, Massachusetts, Oregon (minors only), or Rhode Island, you should check your state’s reporting time pay requirements. Employees may be entitled to reporting time pay for a certain number of hours even if they just showed up and did no actual work. This is intended to lessen wage loss that is not the fault of the employee, as well as encourage employers to not over-schedule, since it causes employees to waste time and resources getting to work.

    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.

    Fundraising is crucial for nonprofits, but it often comes with big challenges. Organizations need to raise money effectively without spending too much, which can be tough given limited resources.

    Below, we’re going to look at a few successful fundraising ideas for nonprofits to help boost cashflow without breaking the bank. Each one offers a practical approach and helps nonprofits focus more on their missions and less on financial stress. After all, success is all about doing more with less.

    Challenges of Traditional Fundraising

    First, it helps to go over what could be getting in the way of success. Traditional fundraising methods often present significant challenges for nonprofits, primarily due to their cost-intensive nature and relatively narrow scope of impact. For instance, while gala events are potentially glamorous and significant in terms of donor engagement, they require substantial investments in venue hiring, catering and entertainment. These expenses can eat into the funds raised, reducing the overall benefit to the organization’s core mission. Similarly, print campaigns — though effective in reaching certain demographics — often fail to capture a broader audience and involve costs for design, printing, and distribution.

    These traditional fundraising methods can impose significant constraints, requiring nonprofits to carefully balance their activities against the potential financial returns. This careful management is vital not only in maintaining operations but also for helping ensure resources are optimally directed toward philanthropic goals, rather than merely covering operational costs. Striking this balance is essential for sustaining long-term success and maximizing the impact of their efforts.

    Smart Tactics for Maximizing Fundraising Efforts

    As nonprofits strive to maximize their impact on limited budgets, innovative strategies are imperative. Here are five effective nonprofit fundraising ideas that can help stretch every dollar further.

    Leveraging social media

    Social media is a vital tool for nonprofits to extend their reach and engage potential donors. Organic posts can share impactful stories—fostering community engagement and expanding reach through shares and likes. Conversely, paid ads target specific demographics which in turn increase traffic to donation pages. Effective campaigns on platforms such as Facebook, Instagram, and Twitter often use interactive content such as live videos and regular project updates, making the nonprofit’s activities more tangible and immediate to potential supporters.

    Hosting virtual events

    Virtual events are becoming much more widespread in modern fundraising, offering significant cost savings compared to traditional galas. Using platforms such as Zoom or specialized webinar tools, nonprofits can more affordably host everything from workshops to large conferences. These platforms provide broader access and lower participation costs, with interactive features such as live polls and Q&A sessions to enhance engagement. Hybrid events blend online and in-person elements, appealing to a wider audience with more diverse preferences—potentially boosting participation.

    Harnessing the power of crowdfunding

    Crowdfunding platforms such as Kickstarter and GoFundMe, are excellent for raising funds for specific projects or initiatives. These platforms allow nonprofits to set clear fundraising goals and communicate directly with potential donors. The key to a successful crowdfunding campaign lies in its ability to tell a compelling story that resonates with potential contributors, clearly stating how their donations will make a difference. Transparency about the allocation of funds and regular updates on campaign progress can help maintain and build trust with donors.

    Email marketing

    Email marketing remains a cost-effective strategy to nurture long-term relationships with donors. By segmenting the email list based on past donation history and stated interests, nonprofits can tailor their messages to different groups, making them more personal and relevant. Effective email campaigns should include updates on the organization’s work, achievements, and ongoing needs, as well as clear calls to action. Incorporating stories of how donations have been used or the difference they have made can significantly improve engagement and donations.

    Encouraging recurring donations

    Setting up options for recurring donations is another strategic approach for consistent funding. Encouraging donors to commit to a monthly or annual donation plan can stabilize a nonprofit’s income, facilitating better financial planning and sustainability. Highlighting the ease of setting up recurring donations on the website and emphasizing their critical role in the nonprofit’s ongoing success can motivate donors to commit to long-term support.

    Implementing these successful fundraising ideas for nonprofits can provide a range of options to increase visibility, engage with more donors, and secure funding in creative, cost-effective ways. By embracing modern innovations and community-focused approaches, organizations can not only meet but exceed their goals.

    Additional Tips

    Additional pointers on how to improve your nonprofit’s fundraising efforts include:

    • Track and analyze fundraising: Regularly evaluate performance using data analytics to identify effective strategies and optimize efforts.
    • Share impactful stories: Connect emotionally with donors by sharing compelling narratives about how their contributions have made a difference.
    • Maintain communication: Keep donors informed through regular updates and express gratitude to build and sustain long-term relationships.
    • Leverage social proof: Showcase testimonials and endorsements from other donors and stakeholders to build credibility and encourage new donations.

    Embracing Efficiency in Fundraising

    Putting these nonprofit fundraising ideas into practice can greatly enhance your organization’s efficiency, allowing you to conserve resources while boosting your fundraising efforts. By adopting these strategies, you could soon be surpassing your targets.

    Explore UST Trust for valuable guidance and insights. At UST we can help enable your team to concentrate more on your mission and less on administrative tasks. Fill out our free savings analysis today to unlock your nonprofit’s savings.

    Resources:

    causevox.com/blog/fundraising-on-a-budget/

    alysterling.com/fundraising-strategy/

    Nonprofit organizations play a crucial role in our communities, offering services, support, and a voice for those in need. However, managing a nonprofit, particularly in terms of staffing and volunteer teams, comes with its own set of challenges—especially when it comes to finances. Balancing the budget while ensuring your organization can function effectively and make an impact is a delicate dance. Fortunately, there are strategies that can both save money and strengthen your team. One significant, yet often overlooked area of opportunity lies in how nonprofits manage unemployment costs.

    Reassessing Your Unemployment Tax Strategies

    For over 40 years, UST has stood as a steadfast ally to nonprofit organizations, providing a pathway to substantial savings and operational efficiencies through the UST Trust. For 501c3 nonprofit employers, understanding how to manage unemployment costs effectively can unlock funds that are better allocated towards mission-critical activities.

    The concept is straightforward but powerful. A federal law exists that allows 501c3 nonprofits the option to opt out of the traditional state unemployment tax system. Instead, organizations can become reimbursing employers, paying the state only for their actual unemployment claims—dollar for dollar. This approach can lead to significant savings, especially for nonprofits with stable employment rates.

    Building a Financial Asset While Saving Money

    UST Trust was established in 1983 to assist nonprofits in navigating this alternative. By choosing UST Trust for your tax reimbursements, your organization can create a reserve fund that not only prepares you for unemployment claims but also serves as a financial asset. Nonprofits that have embraced this strategy with UST have seen savings of 60% or more on their unemployment expenses.

    But the benefits extend beyond just cost savings. Being a part of UST Trust means gaining access to a suite of tools designed to mitigate risks and increase operational efficiencies. From human resources advice to legal consultation and claims management, UST supports nonprofits in strengthening their operational backbone, allowing them to focus on their core mission.

    Taking the Next Step

    For nonprofit leaders seeking to explore the potential savings and benefits UST Trust offers, the first step is simple. UST is inviting nonprofit organizations to fill out a free savings analysis. This no-obligation analysis could be the gateway to significant savings and a more efficient way to manage your nonprofit’s unemployment costs.

    If your nonprofit is looking to save money, reduce risks, and boost operational efficiency, consider exploring UST’s Trust program. By filling out a free savings analysis today, you can discover potential savings that could be a game-changer. This step not only leads you towards financial sustainability but also ensures your team and mission receive the needed support to thrive and make a positive impact in your community.

    Efficiently managing your unemployment expenses enables you to reallocate funds where they matter most – your programs and staff. It’s time to seize control of your organization’s financial well-being and guide it towards a future where every dollar drives your mission forward without unnecessary overhead costs.

    Take the initiative today. Reach out to UST to uncover how your organization can save, strengthen your team, and amplify your impact.

    Question: When are we required to pay for trainings? 

    Answer:  In general, time spent in job-related training is counted as time worked and must be paid. However, not every lecture, meeting, training program, or similar activity would qualify. If all four of the following criteria are met, you do not need to pay the employee for the training:

    1. The training occurs outside of the employee’s normal work hours;
    2. The training is completely voluntary (there will be no company-initiated consequences if the employee does not attend);
    3. The training is not specifically job-related (it may be tangentially related to their job, such as most continuing education, without being specific to how they do their job on a day-to-day basis); and
    4. No work for the employer is performed during the training (e.g. reading or replying to email).

    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.

    Nonprofits are driven by a mission to address societal needs and provide public benefits. This distinguishes them from profit-driven enterprises. While their primary focus isn’t financial gain, nonprofits must still navigate the economic landscape to sustain their operations and fulfill their missions effectively.

    So, how do nonprofits make money? What strategies do they employ to fund their vital initiatives and programs?

    Let’s dive into the topic of how nonprofits make money to ensure they can continue to make a positive impact on the communities they serve.

    How to Make Money as a Nonprofit

    In the realm of nonprofit management, the pursuit of financial sustainability is a perpetual endeavor. The following multifaceted strategies and avenues help nonprofits secure the resources necessary to advance their missions effectively. Here’s a look into how to make money as a nonprofit.

    Traditional Donations

    At the core of nonprofit funding lies the generosity of individuals and corporations. Their contributions fuel the organization’s mission-driven initiatives. These donations, whether large or small, provide the essential lifeline for sustaining operations, funding programs, and driving innovation. They empower nonprofits to make meaningful strides toward societal change.

    Cultivating strong donor relationships, implementing effective fundraising campaigns, and showcasing transparent stewardship of funds are key to maximizing the impact of traditional donations. They foster long-term support for the organization’s endeavors. Additionally, demonstrating the tangible outcomes and transformative impact of donor contributions strengthens trust and loyalty. This inspires continued engagement and philanthropic support from both individuals and corporate partners.

    Grants

    Beyond individual donors, nonprofits often rely on foundation grants and government funding to support their initiatives. These grants offer significant financial backing, enabling nonprofits to undertake ambitious projects, expand their reach and address pressing societal issues. However, securing grants requires meticulous research, strategic alignment with funders’ priorities and robust grant management practices. All of this effort is to ensure compliance, accountability, and sustainable impact. Nonprofits must demonstrate their capacity to deliver measurable outcomes and effectively steward grant funds to maintain credibility and foster future funding opportunities.

    Fundraising Events

    From galas to auctions and charity walks, fundraising events serve as not only revenue-generating opportunities but are also powerful tools for community engagement and awareness-building. These events create platforms for supporters to rally around the nonprofit’s mission. They forge lasting connections and inspire ongoing support. Nonprofits can amplify their fundraising efforts and broaden their impact by leveraging creative event planning, effective marketing strategies, and volunteer mobilization.

    Earned Income

    Nonprofits are increasingly exploring alternative revenue streams beyond traditional fundraising methods. Social enterprises, fee-for-service programs, and merchandise sales offer avenues for generating income while advancing the organization’s mission. Whether through the sale of products, services, or experiences, nonprofits can diversify their revenue sources. This revenue helps them achieve greater financial resilience in an ever-changing landscape.

    Corporate Sponsorships and Partnerships

    Collaborating with businesses presents nonprofits with a myriad of opportunities beyond financial support. Corporate sponsorships and partnerships offer a gateway to expanded visibility and promotional exposure. They enable nonprofits to reach broader audiences and raise awareness for their causes. These collaborations also foster employee engagement. This encourages corporate staff to volunteer, fundraise, or participate in community service initiatives alongside nonprofit personnel.

    In addition to financial contributions, businesses often bring valuable resources to the table. Their expertise often includes in-kind donations to access specialized expertise and networks. Through strategic partnerships, nonprofits can leverage these resources to enhance their capacity, innovate their programs, and extend their reach.

    Investments

    For financially stable nonprofits with a substantial financial base, investments offer the potential for additional income generation and long-term sustainability. Through investments, nonprofits can diversify their revenue streams and build financial reserves to weather economic uncertainties and fund future initiatives. This approach strengthens the organization’s financial footing and enhances its ability to adapt to changing market conditions. The nonprofit is able to seize new opportunities for growth and impact.

    Reducing Costs for Nonprofits

    The question, “How do nonprofits make money?” is a viable one, but income is not the only concern for these charitable organizations. While revenue generation serves as the lifeblood of nonprofits, prudent management of expenses is equally crucial for long-term sustainability.

    By implementing strategies to enhance operational efficiency, nonprofits can streamline processes, reduce waste, and optimize resource utilization. The following are a few strategies nonprofit organizations use to reduce costs:

    • Leveraging technology to enable automation, improve productivity, and reduce overhead costs
    • Engaging volunteers to foster community involvement and decrease labor expenses
    • Making data-driven decisions, empowering organizations to allocate resources effectively and prioritize high-impact initiatives
    • Embracing environmentally sustainable practices to reduce costs and stay in line with the organization’s values
    • Negotiating favorable terms with vendors and partners, leading to cost savings on supplies, services, and collaborations
    • Fostering collaboration within the nonprofit sector and forging strategic partnerships to share resources, expertise, and best practices

    These concerted efforts not only optimize financial resources but also enhance organizational resilience and agility. Understanding how to make money as a nonprofit involves a combination of revenue generation and cost reduction.

    Are You Still Wondering, “How Do Nonprofits Make Money?”

    So, how do nonprofits make money? In the dynamic landscape of nonprofit management, the pursuit of both revenue-generating and cost-saving opportunities is critical for organizational success and sustainability. Nonprofits can position themselves for long-term growth and impact by embracing innovative strategies, fostering strategic partnerships, and prioritizing financial stewardship.

    We urge nonprofit leaders and stakeholders to harness the insights and recommendations outlined in this guide. You’ll quickly recognize the transformative potential your organization holds for advancing its mission and creating meaningful change. At UST, we empower nonprofits to thrive, inspire, and continue their vital work in building a brighter future for all. For additional support and resources, explore our UST solutions. Our experts will guide you toward operating a more sustainable and impactful nonprofit organization.

    Nonprofit organizations form the backbone of societal change. You work tirelessly to advance your causes despite tight budget constraints. It’s crucial for your organization to implement cost-saving strategies that align with your goals and ethics. Through astute financial planning and strategic decision-making, your nonprofit can amplify its impact and extend the reach of its funding. Leveraging historical stability and pooled knowledge, such as entities like UST, your nonprofit can fortify its financial foundation amidst the ever-evolving economic landscape.

    Below, we present ten actionable cost-saving strategies designed to support nonprofit leaders in their ongoing efforts to manage budgets more effectively and channel saved resources back into their mission-critical activities.

    1. Streamline Operations Through Technology

    In an era where digital transformation is vital, investing in technology can lead to considerable long-term savings. Automating mundane tasks reduces labor costs and increases efficiency, allowing staff to focus on more essential, mission-focused work.

    2. Harness the Power of Volunteers

    Volunteers are an invaluable asset to any organization. They not only bring passion and dedication, but also help save on personnel costs. However, manage volunteers responsibly to ensure their experiences are rewarding and further your cause.

    3. Go Green to Save Green

    Implementing eco-friendly practices goes beyond the moral benefits; it is also cost-effective. Cutting down on paper use, optimizing energy consumption, and recycling can lead to substantial savings.

    4. Opt for Second-Hand Equipment

    Before rushing to buy new equipment, consider purchasing quality second-hand items. Not only is this more economical and sustainable, but often you can find barely used resources at a fraction of the cost.

    5. Leverage Free or Discounted Services for Nonprofits

    Many companies offer discounted or even free services to nonprofits, including software subscriptions, marketing tools, and professional development resources. Take advantage of these opportunities.

    6. Invest in Staff Development

    While this may seem counterintuitive as a cost-saving measure, training your staff can actually reduce costs by improving efficiency and reducing turnover – both of which are costly in the long term.

    7. Collaborate with Other Organizations

    Forming alliances with similar nonprofits can lead to sharing of resources, joint grant applications, and mutual support, thereby reducing costs associated with events and projects.

    8. Conduct Regular Financial Reviews

    Assessing your financial practices regularly can help identify inefficiencies and areas for cost reduction. Keep abreast of financial management best practices and remain compliant with regulations.

    9. Optimize Your Fundraising Practices

    Ensure your fundraising efforts are as effective as possible by cutting unnecessary costs and using data-driven strategies. Tailor your campaigns to target the most engaged sectors of your donor base.

    10. Reevaluate Your Space Needs

    If remote work is sustainable, consider downsizing office space or renegotiating lease terms. This can be one of the most immediate ways to reduce fixed costs while maintaining productivity.

    Taking these steps can contribute significantly to reducing expenses, but achieving optimum efficiency often requires tailored solutions. That’s where we can step in to assist you further. UST is well-versed in the unique challenges faced by nonprofit organizations and offers expert advice to help you save money, mitigate risk, and increase efficiency.

    Don’t leave potential savings on the table. For a more detailed exploration of how these strategies can benefit your organization, and to discover additional, customized solutions for cost-savings, complete ourfree savings analysis. Fill out our free savings analysis form today and start charting a course towards financial sustainability for your nonprofit.

    At UST, we’re committed to helping you make every dollar count, underscore your mission, and amplify the change you envision.

    Question: What are the penalties and costs for misclassifying employees?

    Answer:  The answer will depend on a number of factors, such as how many employees are misclassified, how much extra money they would have been paid if properly classified, and whether or not lawyers or regulatory agencies get involved.

    Generally, if an employee goes to the federal Department of Labor (DOL) and claims that they’ve been misclassified, the DOL will investigate. If the DOL determines that an employee—or entire group of employees—should have been paid overtime but wasn’t, the employee will be owed up to two years’ worth of unpaid wages (or up to three if the misclassification was “willful”). The organization may also owe the employee or employees liquidated damages equal to the amount of money owed. So, if an employee should have been paid $2,000 in overtime, the organization may owe them $4,000. The organization would also owe the government taxes on those wages, as well as interest on the taxes.

    Most states also have their own minimum wage and overtime laws, and often an organization can be held liable under both federal and state law, meaning the employee would be owed additional damages for violations of state wage law. And if you are in a state with late payment penalties, the organization could owe additional damages for not having paid all wages by the time they were due. There’s also a very good chance that the organization will be held liable for attorney’s fees—both the organization’s and the employee’s.

    On top of the costs mentioned above, there are potential federal civil penalties of $2,074 per violation (generally one penalty per misclassified employee), state penalties (which will vary), and in some cases the potential for jail time. Finally, statutory interest may immediately begin to accrue on the amount owed.

    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.

    Although nonprofits usually have exemptions from paying taxes, they must still file tax returns each year. Nonprofits file certain forms, depending on the type of nonprofit and the amount of annual revenue. Nonprofit organizations that maintain high levels of organization can find ways to save money and minimize complications in the tax-filing process. With this information, you will understand how to file taxes for a nonprofit.

    How Nonprofits Can Save Money on Tax Obligations

    Nonprofit tax returns involve a clear and honest accounting of the organization’s gross receipts and expenses for the year. Although nonprofits do not have to pay federal taxes and may be exempt from other kinds of taxes, the organization must demonstrate proper asset management and compliance with local and federal tax laws. These tips can help you manage your nonprofit tax obligations.

    1. Ensure Tax-Exempt Status

    Nonprofits can only maintain a tax-exempt status through correct use of revenue. Organizations with a nonprofit classification include religious institutions, public safety organizations, charities, research organizations, and more. To preserve your tax-exempt status, you must prove that any revenue goes to other tax-exempt organizations, minus expenses.

    2. Keep Accurate Records

    To simplify the process of filing your nonprofit tax documents, you should aim to organize and maintain accurate records. The amount of detail that the IRS requires for nonprofit filing depends on annual revenue and type of nonprofit. Since you may need to provide exacting detail of all your expenses, you should ensure that you have those records at hand.

    3. Optimize Deductions

    Nonprofits can deduct certain expenses needed to run the organization when balancing revenue and costs. Common deductions include:

    • Staff compensation
    • Home or office expenses
    • Rental space
    • Licensing and training
    • Equipment maintenance and repair
    • Advertising
    • Financial losses

    If you are unsure of the deductions you may qualify to take, you should consult a professional for detailed advice.

    4. Utilize Tax Credits

    In many cases, nonprofits are eligible for tax credits, as well. For example, if your nonprofit chooses to make certain clean energy upgrades to an office space, you may qualify to receive a credit for the expenses needed to complete the upgrades. Because nonprofits do not pay federal taxes, they can get the credit in the form of a direct pay reimbursement.

    5. Consider Local Incentives

    Many state and local governments offer additional incentives to nonprofits. Some states allow nonprofits to avoid paying sales tax, for example. If you qualify for these types of incentives and tax breaks, keep track of your records. Remember to file claims within the designated claim period, so you can minimize expenses.

    6. Research Current Tax Laws

    Tax laws change every year. Part of learning how to file nonprofit taxes includes staying current on tax laws, so you understand your responsibilities, deductions, credits, and other opportunities. Before you start preparing your taxes, confirm that you are looking at the latest documents for the appropriate tax year.

    7. Manage Payroll Tasks

    Although eligible organizations do not pay income taxes, nonprofit payroll must still include payroll taxes, including Social Security and Medicare deductions. Since employee compensation can represent a significant portion of your deductions, you should confirm that you have followed proper procedures. If you struggle to manage these tasks, consider arranging for payroll services for nonprofits.

    8. Avoid Penalties

    Failing to file taxes at the appropriate time can lead to penalties, including the possible loss of tax-exempt status in certain cases. Your nonprofit tax filing deadline depends on the tax calendar that your organization uses. Start preparation early, so that you have time to address issues before the filing deadline.

    How to File Nonprofit Taxes

    If you have all your files organized and ready for filing, you may find that the process takes less time than you expect. Plan to complete the following steps:

    • Confirm the type of nonprofit, which determines the forms you need to complete.
    • Choose the appropriate forms for your nonprofit, which often includes a variant of Form 990.
    • Collect financial records, including revenue and expenses.
    • Provide your nonprofit’s mission statement, along with other information about your organization’s progress and management throughout the year.
    • File tax documents by the appropriate deadline.

    If you have questions or concerns about the information you must provide, you should consider hiring nonprofit tax help.

    UST Can Help Your Nonprofit Prepare for Tax Season

    To avoid complication and confusion around filing your nonprofit taxes, you can call on UST for expert assistance. We specialize in solutions for nonprofits, including payroll management, tax document organization, and more. We can help you understand your tax filing status and get ready for tax season, in addition to offer our services for unemployment for nonprofit organizationsContact us to learn more about our services or to request a free savings analysis.

    SOURCES

    https://labyrinthinc.com/how-to-prepare-a-nonprofit-tax-return/

    https://www.councilofnonprofits.org/running-nonprofit/administration-and-financial-management/federal-filing-requirements-nonprofits

    https://donorbox.org/nonprofit-blog/nonprofit-tax-returns

    https://www.irs.gov/charities-non-profits/exempt-organization-annual-filing-requirements-overview

    https://www.investopedia.com/ask/answers/08/nonprofit-tax.asp

    https://crscpa.com/blog/how-to-make-filing-taxes-for-a-nonprofit-easy-everything-you-need-to-know/

    https://donorbox.org/nonprofit-blog/17-ways-to-save-money-as-a-nonprofit

    https://www.freshbooks.com/hub/taxes/nonprofit-tax-deductions-for-501c3-organizations

    https://www.cleanegroup.org/what-nonprofits-need-to-know-about-the-investment-tax-credit/

    One area where costs can quickly add up is recruitment. Finding the right talent for your organization is vital, but it can also be a significant expense. Fortunately, there are ways to reduce recruitment costs without sacrificing the quality of your hires.

    Refine Your Hiring Strategy

    Developing a more strategic approach to recruitment can help you save money. Start by examining your current process and identifying areas where you can streamline. Consider using new technology to automate tasks such as resume screening and scheduling interviews. This can free up your HR team’s time and reduce the need for additional staff.

    Utilize Social Media

    Social media platforms such as LinkedIn, Twitter, and Facebook can be an effective way to reach potential candidates. By using targeted ads, you can reach a larger audience of job seekers without breaking the bank.

    Leverage Your Network

    Networking can be a powerful tool when it comes to recruitment. Reach out to current employees, board members, and volunteers for referrals. This can help you find qualified candidates who are already familiar with your organization and its mission.

    Internship Programs

    Internship programs can be a great way to evaluate potential employees before making a full-time offer. Interns can be sourced from local colleges and universities, and while they may require some training and supervision, they can help you find a great fit for your team. Additionally, internships can provide valuable experience and networking opportunities to students who may become future employees.

    Attend Job Fairs

    Attending job fairs can be a great way to connect with candidates who are actively seeking employment. Many job fairs are free to attend, and they provide a platform to showcase your organization and open positions.

    By implementing these strategies, you can reduce your recruitment costs and still find the right candidate for your organization.

    Another way that nonprofits can save money is by using UST HR Workplace. This platform offers live certified HR experts, over 350 employee training courses, an online employee handbook builder, job description tools and various other resources.

    And the best part? Nonprofits can try UST HR Workplace for free with a 60-day trial. So why not see for yourself how UST can help you save money and streamline your HR processes? Sign up today and start reducing your recruitment costs!

    Explore additional blogs here for money-saving tips and tricks.

    Question: Can I limit the number of times an employee makes changes to their W-4?

    Answer: No. IRS guidance states that an employee has the right to make changes to their Form W-4 as often as they would like, and you, as the employer, need to make those changes, even if they’re frequent. The only exceptions are if the Form W-4 is invalid or if you have been previously notified by the IRS that the employee is subject to an IRS “lock-in letter.”

    If an employee gives you a revised Form W-4, the IRS states that you need to begin the new withholding no later than the start of the first pay period ending on or after the 30th day of receiving the new form. We recommend having a standard process for implementing any new Forms W-4 and ensuring your employees are aware of that process.

    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.

    Creating an employee handbook provides a cornerstone reference guide for an organization. It serves as a central source of information about policies, procedures, and the organization’s culture.

    For nonprofits, especially, where resources can be limited and roles diverse, the importance of an employee handbook is immense. A well-crafted HR employee handbook is a tool that shows commitment to consistency, fairness, and transparency in a nonprofit organization.

    Further, a comprehensive handbook can also serve as a critical tool in risk management when it clearly outlines policies related to discrimination, harassment, and disciplinary actions.

    If your nonprofit needs some tips regarding how to create an employee manual, we can help.

    Planning Your Nonprofit Employee Handbook

    Working for a nonprofit, you understand the critical importance of creating a plan for any project. An employee handbook is a valuable piece of organizational content, making the planning stage instrumental in its composition and eventual success.

    Here is some preliminary work you can do.

    1. Identify Goals for the Handbook

    Determine why your nonprofit needs a handbook and what you want it to achieve. Dig deeper than outlining policies and procedures. Consider how it can support your nonprofit’s mission, reflect your organizational culture, and serve as a resource for employee engagement, safety, and overall satisfaction.

    2. Gather Input and Insights from Key Individuals

    Consult with various stakeholders involved with your nonprofit, including:

    • Leadership
    • Department Managers
    • HR Staff
    • Selected Employees

    Once you have gathered everyone’s insights, it can help identify the most relevant content areas and address specific concerns or needs.

    3. Review and Understand Legal Requirements

    Do your research or reach out to a legal professional to understand the legal framework associated with employment in your area, including federal, state, and local laws. This step is essential to ensure your handbook complies with all legal requirements and best practices for employment.

    4. Decide on the Right Structure and Format

    Understanding the handbook’s format will help you keep things organized. One important consideration is the delivery and consumption method, so decide whether you want to distribute it digitally, as a hard copy, or both.

    7 Steps to Create an Effective Employee Manual

    By understanding the importance of employee handbooks and with some preparation out of the way, you can officially start creating an employee handbook ready for use with these seven steps.

    1. Outline Your Nonprofit’s Mission and Values: Begin with a clear statement of your organization’s mission and values to your respective community, as well as to your stakeholders and employees. This first, crucial step sets the tone for the handbook and aligns employees with your nonprofit’s goals.

    2. Define Employment Policies: Clearly lay out policies regarding employment terms, work hours, telecommuting, leaves of absence, PTO, and other employment-related matters. Ensure these policies comply with local, state, and federal laws.

    3. Detail Compensation and Benefits: Include information about salaries, benefits, such as health insurance, retirement plans, vacation policies, training and professional development opportunities, and eligibility criteria. Customize these sections to reflect the unique offerings available to all employees and managers when working for your nonprofit.

    4. Establish Conduct Guidelines: Outline expected behaviors and standards of conduct to create and foster a positive work atmosphere. This section should cover everything from the dress code to ethics and confidentiality policies.

    5. Explain Performance Evaluation Processes: Describe how and when performance evaluations will be conducted. It is also important to let employees know who will conduct the reviews, what they will cover, and what the remediation process looks like if required. This step helps employees understand the expectations and metrics against which they will be monitored, compared, and assessed.

    6. Provide Procedures for Reporting Grievances and Complaints: It’s important for employees to know how to report issues or concerns. Clearly outline the steps they should take if they need to file a grievance or report misconduct.

    7. Regularly Update the Handbook: Laws and organizational policies evolve, so it’s crucial to review and update your handbook regularly.

    Employee Handbook Examples

    Providing real, working examples of employee handbooks in the nonprofit space can be incredibly helpful. If you have a network of fellow leaders in the nonprofit sector, you may ask a peer if you can discuss their strategy or review their handbook.

    Alternatively, since specific examples tailored to nonprofits may be harder to come by, looking at handbooks from a variety of sectors can offer inspiration and best practices.

    Are You Ready to Create Your HR Employee Handbook?

    We hope these tips will get you started, but you don’t have to plan, outline, and compose this important organizational asset on your own. Creating an employee handbook is a significant undertaking, so we encourage you to reach out to us for support.

    At UST, we offer an extensive menu of nonprofit HR solutions for community-focused organizations that don’t have full-time, designated HR teams. Start with our reliable UST HR Workplace for guidance. Our professionals can help you prepare to craft your handbook, offering updated legal and regulatory information and overall best practices.

    Explore the value of our services for yourself by signing up for our FREE 60-day trial, or contact us to discuss your nonprofit’s unique HR needs and Choose UST.

    SOURCES

    www.abelajlaw.com/non-profits/non-profit-employee-handbook/

    No specific citation/allusion, but helpful: blog.airmason.com/employee-handbook-for-non-profit/

    www.chooseust.org/solutions-overview

    www.chooseust.org/hr-trial

    www.chooseust.org/contact-us

    Running a nonprofit is the noblest example of a labor of love. The mission and vision are clear, the team driven by passion, and the pursuit of bettering the world is unflagging. However, in the midst of this impassioned journey, the need for structuring operations can sometimes be overshadowed. One of the pivotal yet often underestimated tools in the nonprofit’s arsenal is a well-crafted employee handbook—your statutory script that helps maintain order while supporting the organization’s growth and sustainability.

    The Importance of an Employee Handbook

    An employee handbook is the cornerstone of any professional organization. While the regulations governing nonprofits may vary, the need for clear and concise guidelines for employees doesn’t. Imagine your handbook as a detailed map of the terrain that marks out safe and sanctioned paths for your employees to traverse through their professional environment.

    In the context of a nonprofit, where the spirit of the cause is integral, a handbook goes beyond a list of do’s and don’ts. It reflects your commitment to transparency, fairness, and nurturing a supportive work culture. It outlines your value system and empowers your team members with the knowledge necessary to align their actions with the organization’s broader goals.

    Crafting Policies Tailored to Your Mission

    Here, we delve into the art and science of handbook policy-making for nonprofits. The policies you establish and the language you use should mirror the unique essence of your nonprofit’s mission. For instance, if your nonprofit’s primary focus is environmental conservation, your handbook could include specific guidelines for eco-friendly practices at the workplace and during off-site events. Similarly, if your cause deals with vulnerable populations, your policies would need to highlight confidentiality and sensitive handling of information.

    It’s not just about what you should include but also what you can exclude. As a nonprofit, your policies should be lean and mission-specific, steering clear of the bureaucratic verbosity often found in corporate manuals. Your intrinsic appeal lies in the directness and decisiveness with which you address matters, both operationally and ethically.

    Understanding Charitable Compliance

    For nonprofit policies, compliance is not just about what is obligatory under general labor laws but also about adherence to the specific clauses that ensure their charitable and tax-exempt status. Here, a thorough understanding of IRS guidelines and any state-specific laws is imperative. Your handbook should not just parrot legal jargon; it must integrate compliance with your organization’s spirit and mission, making the rules as impactful as possible.

    Volunteer Inclusion and Engagement

    Volunteers are the unsung heroes of the nonprofit world. Ensuring their inclusion in your handbook and understanding their legal standing is non-negotiable. Whether it’s guidelines for volunteer work, reimbursement policies, or recognition practices, a comprehensive handbook accounts for the unique role and importance of volunteers in organizational success.

    Language That Leads

    The language in your handbook is critical. It should be devoid of ambiguity, friendly but firm, and most importantly, it should inspire and guide. While there may be a temptation to formalize language due to legal stipulations, strive for a balance that never detracts from the heart of your mission and the human element it embodies.

    Tailoring Your Tone

    The voice of your handbook should echo your organization’s culture. If you’re an advocate for child welfare, the voice should be compassionate and assertive, reflecting the seriousness of the cause. If environmental sustainability is your banner, a tone laced with urgency and practicality can underscore policies on waste management.

    The Clarity Imperative

    Every word matters when it comes to a document as vital as your employee handbook. Use examples, case studies, and bullet points to break down complex or lengthy policies. Clarity ensures that your workforce understands not just the ‘what’ and ‘how’ of your policies but also the ‘why’.

    Regular Updates to Reflect Your Evolution

    Your nonprofit is not static, and neither are the policies that govern it. Any changes to your mission, legal requirements, or strategic direction must be swiftly echoed in your handbook. Regularly scheduled reviews should be a part of your nonprofit’s policy infrastructure to maintain relevance and currency.

    Accessibility and Distribution Best Practices

    An important yet underrated consideration is the distribution of your handbook. Ensure all employees and volunteers have easy access to the most current version. Whether through a digital platform or printed copies, accessibility ensures that your policies can be easily referenced and understood by all.

    A nonprofit’s employee handbook is more than a compliance document; it’s a declaration of organizational philosophy and commitment. Crafting policies that resonate with the heart of your mission can amplify your work, solidify your team, and project a professional image to stakeholders and the public. Make your handbook an ally in your nonprofit’s journey—after all, even the noblest of causes deserve a blueprint for prosperity.

    In today’s digital world, efficiency in HR management is not just beneficial; it’s crucial. UST understands the unique challenges that nonprofits face in managing human resources effectively. With HR Workplace, powered by Mineral, your team can build efficiency into HR workflows, ensure compliance to mitigate financial and reputational risks, and get empowered with resources that can do more for your employees.

    With UST, you gain discounted access to Mineral’s smart employee handbook builder, alongside a wide array of HR and cost saving solutions for nonprofit employers. Mineral’s smart employee handbook builder is a game-changer for nonprofits, allowing you to build federal and multi-state compliant handbooks with ease. With features like Spanish translation and automatic updates, it keeps your policies not just comprehensive, but accessible and in line with the latest legal and HR best practices. Try our FREE 60-day HR Trial today!

    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.