Archive for March, 2008

Nonprofits Help to Meet Goals




Non profit organizations know it’s crucial to ask for external help in order to meet goals and fulfill an organization’s mission. While the types of non profit help that are available from external sources vary, the most commonly provided are monetary and in-kind donations, and volunteer support. For some non profits, success would not be possible without volunteer support. So how do you attract, retain, and maximize your valuable non profit helpers?

Volunteers Help Non Profits



If an individual is providing help to your non profit, you need to make it worth their while to participate. Find tasks for the volunteer immediately after recruitment. Provide clear goals and expectations, and make sure they understand the importance of the task they’re performing and how it fits into the goals of the organization. Above all, never allow people to feel that you wasted their time or that they weren’t really needed, otherwise they might not return. Other tips to boost non profit volunteer help include:
  • Provide recognition, both to the volunteer and during speeches, meetings, etc.
  • Make volunteering fun – have parties, picnics, provide refreshments, celebrate birthdays, etc.
  • Provide structure so those who want to take on greater responsibilities can
  • Provide volunteer opportunities at various times (days, weekends, nights, etc.)

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Nonprofit Employment





Recent data shows non profit employment accounts for 9.5 percent of total employment in the U.S. with an average annual growth rate of 2.5 percent (more than the business sector and the government sector).
Non profit employment includes individuals in various sectors such as health services, education/research, social and legal services, religious organizations, civic, social, and fraternal organizations, arts and culture, and foundations. With this large rate of growth in non profit employment, recruiting can be a special challenge.

Non profit employment: Recruitment challenges


Nonprofit organizations have traditionally faced recruiting challenges. One of the main factors is the difference in compensation packages, which reduces the pool of available workers nonprofits recruit from. Regardless, non profit employment still requires individuals with a high a level of skill and professionalism who can effectively communicate with individuals of diverse language, ethnicity, and culture. This means that even with the salary discrepancy, non profit employment requires the same level of competency as the private sector.

Despite these challenges, there is still an ample supply of capable individuals interested in non profit employment. To find these individuals, it is recommended that you:

  • Clearly state position requirements and benefits

  • Develop a network of professionals in which to gather potential employee recommendations

  • Use targeted non profit employment recruitment methods


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Matching For-Profit Skills To Nonprofit Jobs





More for-profit professionals than ever are transitioning to the nonprofit sector.

Nonprofit matchmaker Rebecca Worters offers guidance to potential hires and hirers seeking to navigate the transition from for-profit to nonprofit.

I think it’s a great trend that people are really starting to feel their work should make a difference and that many are acting on that by transitioning to nonprofit jobs.

At my search services firm for nonprofits, we generally approach a potential for-profit hire by looking for analogous skills.

So for someone in a sales position, we might liken that to a fundraising position. We look at the sub-skills of each particular job to see if they match what the nonprofit needs.

There are a lot of skills that are transferrable, but a lot of the trick is in the way a candidate presents those skills.

If a candidate uses business terminology to explain what she’s done, that’s going to fall on deaf ears when applying for nonprofit positions.

I think the biggest barrier, even when a candidate presents skills in way that’s understandable, is the unwillingness of many nonprofits to take a chance with a for-profit person.

Nonprofits know that there is a different culture in their organizations than in many for-profit companies.

For instance, it’s hard to make fast decisions and do it in a hierarchical manner in a nonprofit.

Some people in for-profits may assume that they can come in and do that, which could quickly alienate the nonprofit’s staff, donors, board members and bosses.

And you know, sometimes there’s a certain arrogance that comes from the for-profit sector.

That’s not true for everyone, but a number of people seem to have the attitude: “I’ve been running a $1 billion company; I can come in here and run this little organization with my hands tied behind my back.”

Rebranding the for-profit résumé

There are a number of things that someone thinking of making the switch to nonprofit work could do to better position herself in the hiring process.

  • Do Your Research
    Just as in any job interview preparation process, you should get to know your potential hirer very well. People can get a good feel for what is going on in the nonprofit world by immersing themselves in publications that focus on the sector. Visit websites that have a wealth of nonprofit news and reflect a nonprofit culture.

  • Get Educated.
    Take some courses in a certificate program that offers nonprofit classes. Many universities offer them in their continuing education departments. It’s important to learn from people who have been in the sector. Taking classes also shows that you’re really serious about making the switch. It’s really obvious when someone gets laid off and says halfheartedly, “Oh, sure, I would be willing to take a job in the nonprofit sector.”

  • Have realistic expectations.
    Don’t expect to come in at the top if you’re making a switch. And don’t expect the same pay.

    Executive hiring
    Recently, many larger nonprofits are looking to for-profit firms when hiring for executive positions. A lot of boards are made up of business people who have a perception that someone from the business world can come in and do the job well.

    I think it’s very important to check how board perceptions balance with the opinions of staff members: Does a particular for-profit candidate have the style we think would be successful?

    Even if it’s a change your organization is seeking, you still have to have a solid base of productive employee-executive collaboration in order to make that change.

    Source: Philanthropy Journal
  • Seven Things Employees Want Most





    Certain priorities remain constant in terms of what employees say makes them happy. Here are seven intangibles workers want most, according to experts:

    1. Appreciation
    Praise heads the list for many workers in the search for happiness.

    “If the office is gorgeous, the pay is good, and the work is interesting, of course that helps,” says Michal Ann Strahilevitz, a marketing professor at Golden Gate University in San Francisco. “However, there is one huge factor that does not cost an employer money: praise. So many supervisors go out of their way to let employees know what they have done wrong, but don’t bother to congratulate and praise them for success. Praise does not cost anything to give, but its benefits on employee morale are priceless.”

    2. Respect

    This attitude costs nothing and yet yields big dividends.

    “The most important factor in keeping employees happy is treating them with fairness and respect,” says Pamela Skillings, a career coach in Jackson Heights, N.Y. “People want to be paid what they’re worth, treated like adults, and rewarded for their good work.”

    Those rewards can be simple and spontaneous. “A sincere thank you or short note often means a great deal when it is recognizing an accomplishment or specific effort,” says Ms. Sarikas. She finds that job dissatisfaction escalates when employees are not treated with respect or feel that their work is not appreciated.

    3. Trust

    In a nationwide survey of 500 employees about what matters most in their relationship with a manager, 90 percent of workers rank honesty, fairness, and trust as their top three needs, says Terry Bacon, author of “What People Want.”

    4. Individual growth

    What people also want is an opportunity to grow and learn on the job. “No matter how we make a living, each of us is nurtured by our own professional and personal growth,” says Michael Neece, cofounder of Pongo.com, which provides résumé-writing services. “Employees want to understand how their efforts contribute to the business and want to feel that they are making a difference to their team, their department, and the company.”

    5. A good boss

    Bosses also play key roles in determining a worker’s happiness factor. More than half of employees responding to an annual job-satisfaction survey by Yahoo! HotJobs admit that they don’t leave companies, they leave bosses.

    “Having a fair, sympathetic manager who makes employees feel valued is a crucial element to an employee’s job satisfaction,” says Tom Musbach, managing editor of Yahoo! HotJobs.

    Career specialists note that employee happiness is serious business – an essential consideration for managers who want to keep top talent.

    In a recent survey by Robert Half International, 1,000 Gen-Yers ranked “working with a manager I can respect and learn from” as the most important aspect of their work environment.

    6. Compatible co-workers

    Working with people they enjoy was a close second.

    “You need to feel good about the people you work with and the people you work for,” Sarikas says. “You don’t have to be best friends and probably shouldn’t be, but you need to be able to respect them for their knowledge and experience as well as for their ethics. You want people who can challenge you but also listen to your ideas, people you can laugh with, people who share a vision for the work you do together.”

    Similarly, employees need to find an organization where the corporate culture fits their personality and work style. For some, that includes work-life balance.

    “People don’t leave their personal lives at the door when they come to work,” says Lyn Freundlich, director of human resources at Third Sector New England, a nonprofit management service in Boston. “They need as much flexibility as possible. When the connection between family and work is recognized, we get more out of employees and they’re happier.”

    7. A sense of purpose

    Above all, career counselors emphasize the importance of doing something you love and having a sense of purpose.

    “Most people find happiness at work when they feel connected to the core purpose of the organization,” Clarkson says. “When we are able to find work that uses our capabilities and allows us to address important values in our life’s purpose, it is the best way to find happiness at work.”

    Whatever an individual’s personal recipe for happiness on the job, Jeff Garten, author of the forthcoming book “Career Contentment,” urges people to take the long view.

    “Career contentment is different from job satisfaction,” he says. “It is a deeper state of mind about one’s direction, fulfillment, calling, engagement. Job satisfaction comes and goes with each job, but career contentment is a lifelong quest and mind-set.”

    When John Izzo, president of The Izzo Group, workplace consultants in Vancouver, Canada, asked 250 people to reflect on their long careers, he heard a recurring theme about what gave them the deepest satisfaction and contentment.

    “Many told me, ‘The corner office and status, now that I look back, really had no meaning. But the feeling of making a difference did,’ ” he says.

    Mr. Izzo adds, “It was what they gave back that made the greatest happiness for them.”

    Source: Christian Science Monitor

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    Eligibility for College Cost Reduction and Access Act of 2007




    The College Cost Reduction and Access Act of 2007 established a new public service loan forgiveness program. This program discharges any remaining debt after 10 years of full-time employment in public service. The borrower must have made 120 payments as part of the Direct Loan program in order to obtain this benefit. Only payments made on or after October 1, 2007 count toward the required 120 monthly payments. (Borrowers may consolidate into Direct Lending in order to qualify for this loan forgiveness program starting July 1, 2008.)

    This contrasts with the loan forgiveness of the remaining balance after 25 years of repayment under the income-contingent and income-based repayment plans for borrowers who are not employed full time in public service jobs.

    Eligibility

    The public service loan forgiveness program has several restrictions:

    * Term: The forgiveness occurs after 120 monthly payments made on or after October 1, 2007 on an eligible Federal Direct Loan. Periods of deferment and forbearance are not counted toward the 120 payments. Payments made before October 1, 2007 do not count. Likewise, only payments on a Federal Direct Loan are counted.

    * What is forgiven?The remaining interest and principal are forgiven.

    * Employment: The borrower must be employed full-time in a public service job for each of the 120 monthly payments. Public service jobs include, among other positions, government, military service, public safety and law enforcement (police and fire), public health, public education, public early childhood education, public child care, social work in a public child or family service agency, public services for individuals with disabilities or the elderly, public interest legal services (including prosecutors, public defenders and legal advocacy in low-income communities), public librarians, school librarians and other school-based services, and employees of tax exempt 501(c)(3) organizations. Full-time faculty at tribal colleges and universities, as well as faculty teaching in high-need areas, also qualify.

    * Eligible Loans: Eligible loans include Federal Direct Stafford Loans (Subsidized and Unsubsidized), Federal Direct PLUS Loans, and Federal Direct Consolidation Loans. Borrowers in the Direct Loan program do not need to consolidate in order to qualify for loan forgiveness. Borrowers in the FFEL program will need to consolidate into Direct Loans.

    (Beginning on July 1, 2008, FFEL borrowers may obtain a Federal Direct Consolidation Loan in order to qualify for public service loan forgiveness even if they had previously consolidated in the FFEL program.)

    Although Perkins Loans are not eligible for public service loan forgiveness, if they are included in a Federal Direct Consolidation Loan the entire consolidation loan, including the Perkins Loans, is eligible for public service loan forgiveness. One may use income-based repayment and income-contingent repayment on such a consolidation loan.

    Perkins loan borrowers will need to consider the tradeoffs of including the Perkins loans in a federal direct consolidation loan. When Perkins loans are consolidated, they lose several favorable benefits, such as subsidized interest, a 9 month grace period, and a generous loan forgiveness program.

    Grad PLUS loans are eligible for forgiveness. However, the language in section 455(d)(1)(D) of the Higher Education Act of 1965 precludes the use of income-contingent repayment for PLUS loans. This is fixed by section 493C(b)(3), which amends the exclusion to apply to just Parent PLUS loans. But that amendment is effective July 1, 2009. So until July 1, 2009, income-contingent repayment cannot be used for Grad PLUS loans. On or after July 1, 2009, one can use income-contingent repayment for Grad PLUS loans. (Income-based repayment also becomes available for all direct loans except Parent PLUS and Perkins Loans on July 1, 2009.) However, as with Parent PLUS loans, Grad PLUS loans can become eligible for income-contingent repayment provided that they are included in a Federal Direct Consolidation Loan and the borrower did not enter repayment before July 1, 2006. Consolidation loans that include a Grad PLUS loan are also eligible for income-based repayment starting July 1, 2009.

    Note that borrowers who took advantage of the early repayment status loophole to consolidate their loans during the in-school period technically entered repayment before July 1, 2006.

    * Eligible Repayment Plans: Borrowers may use income-based repayment, income contingent repayment, standard repayment or a combination of these repayment plans. Payments made under other repayment plays (e.g., extended repayment and graduated repayment) do not count. To maximize the amount of forgiveness, borrowers should use income-based repayment. When income-based repayment is not available (e.g., prior to July 1, 2009), they should use income-contingent repayment.

    If a borrower were to use only standard repayment for repaying their loans there would be no balance remaining after 10 years and so no debt to cancel. Standard repayment is only provided as an option to address situations when a borrower is unable to continue under income-based repayment because they no longer have a partial financial hardship and the payments under income-contingent repayment exceed standard repayment. In such a situation the borrower would use standard repayment for the remaining payments and obtain some loan forgiveness at the end of the ten years of payments.

    Bottom Line Advice

    Although the details may seem complicated, the advice for taking advantage of this program is more straightforward.

    * Borrowers who will be employed in public service jobs and who have loans under the FFEL program should obtain a Federal Direct Consolidation Loan as soon as possible. (Before July 1, 2008, they will need to consolidate into direct loans by stating that they were unable to obtain acceptable income-sensitive repayment terms. On or after July 1, 2008, they will be able to consolidate into direct loans to obtain public service loan forgiveness.)

    * Parent PLUS borrowers who entered repayment on or after July 1, 2006 will need to consolidate their PLUS loans even if they are already in the Direct Loan program.

    * Borrowers should start off with income-contingent repayment, if they can. They should switch to income-based repayment as soon as it becomes available on July 1, 2009, if they can. (Consolidation loans that include Parent PLUS loans are not eligible for income-based repayment.)

    Feel free to give your thoughts on the matter below in our new comments section or bookmark this page for others to find!


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    Non Profits and Sarbanes Oxley Compliance




    While for-profit corporations face the brunt of the requirements imposed by the 2002 Sarbanes Oxley Act, non profits are also affected. Two provisions of the legislation that apply to all organizations whether non profit or for-profit, include:
    • Whistle-blower Protection: New protection in Sarbanes Oxley makes it illegal for a corporate entity to retaliate against any employee who reports suspected illegal activity by their employer.

    • Document Destruction: It is illegal to destroy or alter any document to prevent its use in an official proceeding (i.e. federal investigation or bankruptcy proceedings).


    Implications of Sarbanes Oxley on Non Profits


    While the immediate implications of the Sarbanes Oxley Act are not as far reaching for non profits, the legislation has created an increased amount of attention on the accounting practices of non profits.


    IRS commissioner Mark Everson commented on the accountability of non profits during a U.S. Senate Finance Committee hearing on Charitable Giving Problems and Best Practices, stating, “if the abuses [of non profits] are left unchecked, I believe there is the risk that Americans not only will lose faith in and reduce support for charitable organizations, but that the integrity of our tax system will be compromised.”


    As a result, it was recommended that non profits undergo a five-year review of IRS tax-exempt status, and improvements should be made to the scope and quality of form 990 and financial statements, and increased accessibility to a non profit’s financial records.


    With federal and state imposed accountability mandates on the rise (like those in Sarbanes Oxley), non profits are being encouraged to:

    • Develop an independent audit committee

    • Have top management carefully review the Form 990 or 990-PF before it is submitted

    • Make financial statements readily available to the public

    Sarbanes Oxley Compliance: A Definition




    The Sarbanes Oxley Act of 2002 (often shortened to SOX) is the Securities and Exchange Commission’s (SEC) response to the high number of financial scandals in the early 2000s. The legislation was enacted to protect shareholders and the general public from accounting errors and fraudulent practices like those made mainstream knowledge by Enron and WorldCom.


    Sarbanes Oxley does not mandate how business records should be stored, but defines which records must be stored to maintain compliance and for how long they must be stored. While most people associate the Sarbanes Oxley Act with finance departments, it also greatly affects IT departments, whose job it is to store a corporation’s electronic records.


    Sarbanes Oxley Compliance: Electronic Records




    To maintain Sarbanes Oxley compliance, all business records, including electronic records and electronic messages, must be saved for “not less than five years.” If Sarbanes Oxley compliance is not met, organizations can face fines, imprisonment, or both. Sarbanes Oxley establishes three specific rules that affect the management of electronic records, including the following mandates:

    • Fines or imprisonment will be applied to any individual who intentionally destroys, alters, or falsifies records with the intent to impede, obstruct, or influence the investigation or proper administration of any matter within the jurisdiction of any department or agency of the United States.

    • Records must be stored securely using the same guidelines set for public accountants (a period of 5 years from the end of the fiscal period in which the audit or review was concluded)

    • Relevant records must be kept including workpapers, memoranda, correspondence, communications, and records (including electronic records) which pertain in any way to an audit or review.

    Non Profit Compliance




    Non profit compliance addresses the need for a non profit to practice sound financial management and comply with an array of legal and regulatory requirements. A non profit needs to maintain accurate financial records that show the organization’s financial resources are used in furtherance of the organization’s charitable purposes. To assure non profit compliance, the organization should conduct periodic reviews to address regulatory and liability concerns.


    Non profit compliance: Financial and legal requirements


    Financially, a non profit must operate in accordance with an annual budget that has been approved by the board of directors, and maintain reports that accurately reflect the financial activity of the organization.


    Legally, non profit compliance relies on being aware and staying within the guidelines of all applicable federal, state, and local laws and regulations. This accountability may include, but is not limited to, complying with laws and regulations related to fund raising, licensing, financial accountability, human resources, lobbying and political advocacy, and taxation.


    To ensure a non profit maintains compliance with all legal, regulatory and financial requirements, a periodic internal review is recommended which should then be provided to the board of directors.

    Staying Abreast of the Latest Trends





    There is a continuous influx of changes to the laws and best practices related to non profit organizations and human resource management. Therefore, it’s important to stay abreast of the latest trends and recommendations issued from credible human and non profit resource associations in order to maintain compliance and give your organization the inside track to successful human resource management.


    To achieve this, an indispensable resource is membership to human resource and non profit associations such as SHRM (Society for Human Resource Management), the Georgia Center for Nonprofits, or similar groups.


    Non profit resources: Association benefits


    Membership with industry associations provide access to best HR practices, trade shows, trade publications, and online resources aimed at keeping you current on employment practices and other non profit issues. For example, many HR associations publish wage and benefit reports that can be used to determine competitive compensation packages for vacant or newly developed positions. Other association membership benefits include access to other non profit resources, such as:


    • Conferences

    • Research

    • Professional development courses

    • Publications

    • Industry forums

    • Networking



    The benefits of every professional association vary, therefore, we encourage you to research the services offered and their associated costs before becoming a member.

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    Employee Retention?
    Not a Problem When Training Your Leaders





    Attracting and retaining employees is a topic of endless articles, conference sessions, books and Webcasts, as well as the basis – the “raison d’être” – for numerous product launches. Yet retaining talented employees, while requiring effort and focus, may not be such a dilemma, according to Impact Achievement Group.

    Superior management practices and effective leadership are key missing ingredients in many organizations, evident in the many organizations that Rick Tate and Julie White, PhD., senior managing partners for the leadership development firm, have consulted with through the years.

    Companies giving low priority to developing leaders may eventually realize a domino effect through the organization in terms of retention. Recent research by Gallup(TM) has shown that competitive pay, benefits, and amenities are the market ante for any employee – superior, mediocre and poor performers.

    Leaders must understand what high performing direct reports demand from their work environment to engage their best efforts and loyalty:

  • Clearly communicated job requirements, focused on contributions instead of job tasks

  • Resources to do their best work

  • Ability to meaningfully participate it what affects them on the job

  • Genuine acknowledgment of their contributions

  • Genuine concern for their career

  • A performance review process that differentiates excellence


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