Nonprofit board pay collateral is a important component to making sure your nonprofit’s compensation procedures are compliant and translucent. It is also an area of significant risk for your organization, with the IRS assessing penalties to your corporation if you do not adhere to arms-length strategies when it comes to placing executive compensation.
A key first step to handling board pay for equity can be creating a insurance plan that email lists salary runs for all open positions. This will help the nonprofit be a little more competitive https://scoreboardroom.com/structure-of-a-typical-board-meeting-agenda in the marketplace the moment hiring new staff and will make it easier to the path salary info against different local not-for-profits.
Another important component of nonprofit board pay equity is a living wage policy for your personnel. This will ensure that your employees’ wages are reflective of the cost of coping with your community and will allow you to benchmark their salaries against various other local charitable organizations with related budgets and mission concentrate.
Several charitable organizations have created regulations that list salary rings in all job postings. This is certainly an excellent first step and should be described as a standard practice for all not-for-profits.
As with all employee pay, your nonprofit must abide by state and federal minimal wage requirements. The nonprofit must provide paid overtime if an employee functions more than 40 hours within a given week. In addition , your nonprofit must pay all of the employees for the cost of medical and retirement life benefits that are provided to personnel by your charitable.