Entries with Blog Label: HR Knowledge

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

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

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

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

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

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

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

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

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

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

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

Building your Talent Management Capabilities

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

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

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

Internal Review

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

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

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

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

    Defining Success at your Agency

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

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

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

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

    Developing the Talent

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

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

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

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

    Recruiting and Hiring the Right Talent

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

    Read the original Capability Company report here.

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

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

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

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

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

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

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

    How well would you guess you know the Nonprofit Sector?

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

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

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

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

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

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

    This educational webinar also teaches nonprofits about:

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

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

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

    As a nonprofit leader and advocate for your community, staying in front of your audience requires being current and consistent. From producing press releases, scheduling tweets, and putting in countless hours to produce a monthly newsletter, being on top of it all can be overwhelming Regardless of your constant efforts you know, deep down, that your marketing strategy always has room for improvement.

    Since marketing is always a popular topic of discussion in the nonprofit world, the same question comes to mind—what more can we do to make people aware of our mission? How about an easier tool to promote our non profit? Like a blog.

    Don’t think you need a blog? You’re not alone.  While many nonprofits put blogging way down on their priority list, it could be a tremendously effective marketing tool for any organization. Here are four good reasons why your nonprofit should start a blog:

    1. Create personal conversations

    Like most nonprofits, you’re probably utilizing social media as a way to reach your audience and to display content to properly convey your mission. Social media has great value; however, it can be difficult to break through the noise. With a blog, you can focus more on developing content that will resonate with your specific audience without feeling the need to compete to be seen or heard.

    2. Provide press coverage on newsworthy topics

    Press releases are a great source of communication and a great way to get the word out about your programs and offerings. However, press releases can require fact checking, approvals and asking journalists to cover your work— which is often extremely time-consuming. With a blog, you’re the journalist. You can funnel the efforts of a press release into a post and then track its performance with analytics. Even with a small readership, your blog will be better received by your dedicated followers than a mass media audience who may tune you out.

    3. Produce content that organically attracts donors

    While mailing newsletters can still spark some attention, they tend to be glanced at and tossed in the recycling bin. We live in an age where if certain content can’t be emailed, posted or texted, it could be considered irrelevant. Here’s where a blog can do the job for you. Your posts can be found forever on search engines and repeatedly promoted through multiple online channels. As your blog content gains traction, donors can share posts again and again via social media to attract new donors to your cause.

    4. Connect with people on a more intimate level

    Using short bits of content are great for social media and an easy way to share current events happening in the nonprofit sector. A blog, on the other hand, allows you to share stories of how your organization was able to make a difference. It provides an opportunity to tell in-depth stories that will create a deeper connection between you and your future donors.

    A blog can become an essential part of your marketing strategy. Not only will blogs allow you to create content that is shareable, but it will also help you drive your marketing efforts. Plus, building a blog full of engaging content can make a world of difference in boosting your number of supporters and donations.

    Board members are the driving force of any nonprofit and lead the organization towards a sustainable future by adopting sound, ethical and legal governance – ensuring the nonprofit is able to advance its mission. One of the fundamental challenges that board members face is the lack of understanding of their roles and responsibilities.

     

    ​​​​​Join Barbara O’Reilly, CFRE, Principal of Windmill Hill Consulting, to learn how to strengthen your leadership team and determine the roles every board member can—and should—play in creating a strong culture within your organization.

     

    This  webinar will teach you how to:

     

    • Use a board matrix to identify potential talent
    • Understand essential steps in formalizing a board recruitment process
    • Create a board orientation process that helps new leaders fully contribute to the governing work of the board
    • Understand the various roles board members can play in fundraising
    • Tactics for working with underperforming board members

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

    There is not one nonprofit organization that wants to cut programs it believes furthers its mission. But too often, nonprofits keep programs long after they’ve stopped being effective and worth the cost. Sometimes it is necessary to scale back or even eliminate programs so that funds can be better spent launching new initiatives that help the organization meet its core mission.

    Communities are constantly changing and your nonprofit must be prepared to change with them. Do your homework and research what is working and what is not – never assume the effectiveness of your programs.

    • Survey participants, members, donors, employees, volunteers and other stakeholders about which of your programs are the most—and the least—effective and why.
    • Review your community’s demographic data for changes relevant to your program offerings.
    • Ask the community what they know of unmet needs or new trends that should affect your programming decisions.

    While you don’t want to eliminate anyone’s opinions, you do want to be careful about how the feedback is used to rid your organization of obsolete programs and create new ones. If one of your programs is clearly ineffective and another is wildly successful, the decision to redeploy funds to the successful program is obvious. And keep in mind that new programs can be variations of old ones, just re-vamped to better serve your nonprofits core mission, values and goals.

    Undoubtedly, you already have goals in place that measure each of your programs progress. If you don’t, now is the time to set them up. Being able to easily identify what is working and what is not, is pivotal to your nonprofit’s success.

    Before deciding whether to cut a program or start a new one, be strategic and realistic about your expectations. Being able to recognize when it’s time for a change and how to best use what funding is available will help ensure successful programs.

    Some people just exude negativity. They gripe about anything and everything. Rarely do they take responsibility and more times than not, they see themselves as the victim. Through some combination of nature and nurture, negativity is their default response but that negative energy can be detrimental in the workplace.

    If you manage people, you will likely encounter a situation in which you will have to manage a negative employee. Some managers have the innate ability to handle difficult situations but your team may lack the skill and confidence required to communicate effectively with someone who is negative and can be easily defensive which can cause conflict.

    While communicating with these individuals about their behavior can be uncomfortable, doing so can help to eliminate the impact on other workers and this should be priority number one. It’s imperative to address the issue sooner than later to also avoid the spread of one person’s negative attitude to the rest of the group — ultimately affecting effectiveness and productivity. The last thing you want is to have team moral take a hit.  

    Using specific examples of behavior will help the employee better understand where you are coming from and enable them to make some specific changes. You don’t want to lecture your employee but you do want to make sure you provide enough context to ensure they understand what your concerns are and what expectations you have going forward.  Also, encourage them to speak up as issues arise so things don’t escalate in the future. Taking an interest in their well-being by checking in periodically can also strengthen their sense of purpose and belonging. If you simply criticize their approach and don’t acknowledge their concerns, they will end up feeling like their feedback was unwelcomed and ultimately trigger frustration and more negativity.

    Don’t take anything said personally and avoid becoming defensive. Keep in mind that most people don’t like constructive feedback even when given with the best intent. Anything can trigger a defensive response so practice what you will say and how – it could save you a lot of headache. A little compassion goes along way – it shows the employee you are interested and concerned about them as a person. There may be some things you can’t help with that perhaps have nothing to do with work but you can listen and sometimes that is all one needs.

    Nothing is more challenging than trying to get negative people to respond more positively. However, dealing with issues when they arise and being clear on what those issues are while following through with a plan that addresses them can go a long way. It’s important to acknowledge the value of their perspective and involvement when they communicate effectively.

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    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.