Compensation

  • Classifying Employees Correctly as either an independent contractor or employee and then as an exempt or non-exempt employee is critical for avoiding costly legal fees, penalties, and back owed overtime wages plus back taxes. (National Council of Nonprofits)

  • Employee Classification Conundrum offers a step-by-step assessment to help determine whether an employee should be classified as exempt versus non-exempt under the Department of Labor's Fair Labor Standards Act. (Nonprofit Risk Management Center)

  • Nonprofits must establish that the executive compensation (salary and benefits for senior level personnel) provided at their organization is "reasonable and not excessive." The IRS recommends a three step process referred to as "rebuttable presumption" to substantiate the reasonableness of compensation offered by an organization and provides legal guidelines: 

  • Discusses overtime pay and includes examples for non-exempt employees. (United States Department of Labor)

    Computing Overtime Pay

  • Severance Pay Policy July 2014 Society for Human Resource Management

    Practice Note

  • Nonprofits compete with for-profit workplaces for talented workers, so setting the right level of compensation can make the difference between attracting and retaining qualified employees or, in contrast, suffering from high turnover and/or not being able to find the hoped-for caliber of employees. (National Council of Nonprofits) 

    Compensation For Nonprofit Employees

  • When questions about a nonprofit leader’s exceptionally high salary make the front page of the paper, we wince. A single nonprofit is being criticized for being an outlier, but it feels as if all charitable nonprofits and their values are being questioned.

  • This article addresses high-level legal concerns facing public charities and private foundations as they consider whether and how to compensate their directors. (Robinson Bradshaw)

    Compensating Nonprofit Directors – Trend or Taboo?

  • Use this compilation of wage data from the National Compensation Survey to help determine the value of specialized skills when assessing salary levels for a position at your organization. (The Bureau of Labor Statistics)

  • Nonprofit board members are usually volunteers. Even though compensating board members is standard in the business world, only a small percentage of nonprofits compensate board members. (The Balance - Small Business, 2020)

     

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