Somewhere in the world today, a family is moving into their first home. Meanwhile, a volunteer is reading to a classroom full of children. In another town, a patient just received care at a hospital they otherwise couldn’t afford. None of it happens by chance: it happens because of the nonprofit sector. Nonprofits are built to do more with less, an admirable task when it comes to mission-driven work. August 17th is National Nonprofit Day, a day where we see and acknowledge all the hard work of nonprofits across the globe.
A Brief History Lesson on National Nonprofit Day
The history of this day begins with a 19th century tax law. When the Tariff Act of 1894 (also known as the Wilson-Gorman Tariff Act) carved out exemptions for charitable organizations, it laid out the legal foundation for the nonprofit sector as we know it today. Years later, author Sherry Truhlar officially founded the day as we know it.
National Nonprofit Day doesn’t just celebrate the miracle work that nonprofits put forth. It also acknowledges and thanks those working behind the scenes to make sure that miracle work happens. Nonprofits employ 10% of the U.S. workforce and move billions in donations each year. August 17th is a day to pause and recognize both the organizations and the employees behind those numbers.
How Does National Nonprofit Day Relate to HR?
If you work for a nonprofit, chances are that you may wear five different job titles before lunch. This can make compliance tricky to navigate, handbooks hard to define, and job descriptions unclear. The liability that nonprofits face regarding their HR practices can be significant if not handled properly.
Compliance
HR plays a critical role in a nonprofit’s success. The nonprofit sector faces the same federal and state employment laws as any other organization but often does not have HR expertise to track changes and ensure compliance. If nonprofit organizations are based in multiple states and follow a remote work structure, this can get even more complicated. Essential HR support means monitoring any regulatory or compliance changes and keeping the organization ready for any possible audits. These responsibilities ensure the organization’s funding or reputation are not jeopardized in the event of an HR misstep.
Employee Classification
Nonprofits often blend their team with paid staff, part-time employees and interns, and volunteers. Classifying any of these team members incorrectly carries both legal and tax risk. HR expertise and support clarifies and draws clear lines around who is an employee and who is volunteering their time. According to the U.S. Department of Labor, “misclassifying employees is a serious problem because misclassified employees may not receive the minimum wage and overtime pay to which they are entitled under the FLSA or other benefits and protections to which they are entitled under the law.” Proper HR support ensures that both the organization and its employees are protected and receive the proper benefits that they are entitled to.
Payroll
Often, payroll is the work of an executive director or office manager who focuses on HR responsibilities in addition to the work their title demands. Running payroll, tracking PTO, and managing tax filings can be put on the side in favor of other tasks. Ensuring that a proper HR expert takes on these responsibilities means that these managers and directors can focus on the nonprofit’s mission more closely than before.
Handbooks, Policies, & Documentation
Clear employment policies protect both the organization and its staff members. Many organizations, including nonprofits, operate with outdated or missing handbooks simply because no one has the time or understanding to write one. Additionally, operating without a clear and updated handbook can result in blank spaces in policies and missing documentation. HR experts ensure handbooks exist and are updated when needed, enforce and protect working policies, and store essential documentation for the organization.
Recruiting Support
Turnover can majorly impact the nonprofit sector. Burnout is an ongoing challenge, and tight budgets often do not have room for a dedicated recruiting and talent acquisition team. HR support streamlines the hiring process and even touches on the onboarding process. With proper HR support, smaller teams are not scrambling to rework the hiring process when an individual leaves.
How Flex HR Supports Nonprofit Clients
Flex HR is proud to work with and support the mission of many nonprofit organizations. In addition to our team’s volunteer work around the country, we provide HR services to several nonprofit clients.
One client, a U.S.-based 70 team member organization, was in need of hiring multiple new team members. Our Director of Recruitment, Natalie Morrissey, recalls that the client went from “no recruitment process to a fully up and running recruiting and interview process in 2 months, accelerating their hiring from 0 to extending 1-2 offers per month”. Providing recruiting solutions and leading client teams towards success is always a celebrated outcome with Flex HR.
Another client, a small to mid-sized nonprofit organization, was in need of a complete organizational transformation. Flex HR provided multiple HR engagement tasks, including organization design, HR structure build-out, and performance management. Closely working to reinforce and align with the client’s mission was a priority for our HR experts. After assessing the people and processes within the organization, a clear reporting structure was created in addition to clear job descriptions and an organizational chart, a compliant and updated handbook, clear communication, and created measurable goals and objectives.
The result? The client achieved a multi-million-dollar initial donation from a major Fortune 100 company. This initial contribution resulted in future funding reaching 15 times the amount of normal operating funds. The organizational structure that was created through the collaborative efforts of the organization’s mission and Flex HR’s experts helped position this client for long-term success and continued community impact.
Celebrating Nonprofit Success
The moving family, the classroom volunteer, and the patient receiving life changing care: none of it could happen without the extensive behind the scenes work of the teams behind the nonprofits. On National Nonprofit Day, Flex HR is proud to be a part of those success stories.
If you are feeling the pressures of HR responsibilities on top of your nonprofit’s mission or wondering if your organization may need more HR support, our team is here for you. Our HR experts will help you streamline your HR functions for long-term success.
Nonprofit organizations partner with Flex HR for:
- HR support aligned to mission-driven organizations with lean teams and evolving funding models
- Support for onboarding and offboarding team members
- Compliance and risk management across employment laws, policies, and documentation
- Compensation and benefits guidance that balances competitiveness with budget realities
- Employee engagement and retention strategies for teams at risk of burnout
Contact Flex HR to schedule a call and learn how we offer affordable HR support designed for nonprofit organizations and their evolving workforce needs. Sign up for our Newsletter to stay current on the latest HR news, trends, and best practices.
