Category

Nonprofit

Dec 01
0

Could You Be At Risk Of An FLSA Lawsuit?

By | Accounting, FLSA, Nonprofit, Overtime | No Comments

A record number of FLSA lawsuits were filed against U.S. employers last year and with new overtime regulations due on December 1, this is a very good time to ask if you could be at risk.

 

As we reported earlier, another four million employees will be eligible for overtime pay under the new regulations and attorneys have warned this could lead to a spike in the number of disputes.

 

“We now have a new salary threshold that puts 4.2 million workers back into play,” said Daniel Abrahams of Brown Rudnick LLP in an interview with TSheets earlier this year. “You can bet the plaintiffs’ bar is busy monitoring this and looking for new cases.”

 

You may wonder what impact the Trump presidency will have on the new regulations and that remains to be seen, but experts warn it would be unwise to ignore the December 1 deadline. The Fair Labor Standards Act has been around for a long time — and it’s not going away anytime soon — so it’s a very good idea to get familiar with the regulations.

 

There are some great free resources out there to get you started and this one, recently published by TSheets, highlights seven of the most common risk areas:

 

1. Misclassification

8.6 million employees are currently misclassified and the consequences can be costly. It pays to know the difference between an independent contractor and an employee, and to know who is exempt from the FLSA and who is not.

 

2. Off-the-clock work

Mobile technology means more and more employees now work outside of normal hours and if they are nonexempt, this time has to be tracked and paid. This is already a common cause of disputes and more are expected after December 1.

 

3. Unauthorized overtime

When nonexempt employees work overtime they have to be paid for it, even if it was unauthorized. The rate is usually 1.5 times their normal pay but in some states, like California, the regulations demand more than this.

 

4. Breaks

 

Research shows that 4 out of 5 office workers now regularly work through their lunch breaks — but if they are nonexempt and the time is being deducted from their paychecks, their employers could end up in court.

 

5. Record-keeping

 

“To the degree that you don’t have this in place, start creating a really good paper trail,” says attorney Maria Hart from Parson, Behle & Latimer. “That’s an attorney’s best friend—to have documents that show what you were doing, not doing, and so forth. Document, document, document.”

 

6. Interns and volunteers

 

In 2015, just 39% of graduate interns were paid. But as attorney Mark S. Goldstein warns, a recent ruling could mean that more of them could be in future. “An employment relationship is created when the benefits to the intern are greater than their contribution to the business,” he says.

 

7. Regulatory changes

 

Should you be complying with state or federal laws? Or both? Are you following the latest labor department regulations? The shifting sands of labor laws makes it a challenge to get it right all of the time.

 

Disclaimer: Please refer to a professional tax or legal advisor regarding specific requirements of FLSA and how they impact your business. We do not recommend particular employee classifications or practices and leave those decisions to the discretion of your organization.

Nov 28
0

6 Disaster Recovery Tips to Keep Your Nonprofit Afloat

By | Nonprofit | No Comments

Disasters come in many shapes and sizes. Sometimes they’re small and inconsequential and others are big and completely devastating. Regardless of the size and severity, if you don’t have a plan in place, your business may be forever altered. Both big and small disasters happen at unexpected times, so we often are not fully prepared for them.

There are many examples of accidents that happen every day. Here are a few we have seen that are not as uncommon as you might think:

1. Fire breaks out in the office damaging the equipment leaving management without a location to conduct business.

2. Water pipes in the ceiling burst leaving the office flooded and all servers and vital technology beyond repair. Management’s ability to retrieve and process information stops abruptly.

3. Prolonged power outages due to a damaged electrical transformer. The agency is unable to resume critical business functions utilizing electricity.

4. A server blows up and the back-up system did not work properly. The organization is at a complete standstill.

Post-Disaster Course of Action

After an unexpected event, the most timely and efficient response requires pre-disaster planning. Rather than responding in a crisis mode, with a post-disaster course of action, you will be able to follow a well thought-out plan you put in place for just such emergencies.

Planning for the unknown may seem like a daunting task. However, if you break down the key elements of disaster recovery, it can make planning easier and business continuity a success.

Here are six key steps you’ll likely need to take in a disaster recovery scenario:

1. Designate a place to go to restore operations, whether that’s another location or a mobile office brought to your site.

2. Plan how to communicate with staff. The team is the most important part of your organization. Set up a communication system and reroute telephone calls or establish a special number that the team can call for updates.

3. Consider geography. Locating a disaster recovery site 10 miles away may seem convenient, but in a natural disaster, 10 miles may not be far enough. Assemble an emergency kit filled with batteries, flashlights, water and other sustainability items. It could contain petty cash, important documents, passwords, keys, etc.

4. Validate backup data. Is the data on your backup tapes sufficient? Don’t underestimate this step!

5. Test your plan. Testing often lands on the back burner, yet it is the only way to confirm your recovery plan will work.

Don’t compromise your organization’s health by trying to recover when you are the most vulnerable, as in a disaster. Welter Consulting is available to help with disaster planning, preparedness, business continuity, data storage, and faster recovery. At Welter Consulting we are committed to finding you the most affordable technology, the most powerful solution, and providing expert support. By leveraging technology and superior reporting, more efficiency is achieved, freeing up more of your time to devote to the important work of your mission. We are passionate professionals who choose to work in the nonprofit sector for the same reason you do – helping others.

Nov 21
0

Nonprofit Fundraising Success: Trends that Work

By | Fundraising, Nonprofit | No Comments

Fundraising is often a challenge for nonprofit organizations. The following nonprofit fundraising trends can help you achieve your fundraising goals and boost your margin.

Four Trends in Nonprofit Fundraising

1. Show specific results: Donors want to see specific results from their investment, so

make sure you ‘speak the language’ they want to hear. The more you can demonstrate that donations are contributing toward the achievement of the desired goal, the more you’ll please your donors. Use different communications methods to share the results: Videos, pictures, stories, articles and more.

2. Personal communications: Personal communications cements the relationship between donor and nonprofit even further. Sending personalized reports, emails or notes to major donors, using the specific results mentioned above and emphasizing the importance of the relationship, offers an incentive for donors to keep giving. Personalization is much more than customizing the salutation field on a donor letter – it’s a comprehensive approach to donor communications that keeps your donor’s need for information and contact first and foremost.

3. Tie financials directly to mission goals: Every nonprofit has its own mission and goals in place to reach that mission. Aligning your financial strategy to those goals, demonstrates to your donors that you are maximizing their investment in your organization. Explain to donors that you are utilizing time and money saving business strategies and software in administrative functions, so that donation dollars are directed toward meeting agreed upon goals.

4. Keep abreast of changing demographics: Changing demographics may require different communications methods or styles. As young people increase their philanthropic activities, your donor outreach strategy should include social media campaigns, text messages and more. Learn your donors’ demographics, utilizing that information to improve donor relationships, which is necessary for fundraising success.

Managing Donor Relationships is Easier with the Right Nonprofit Software

Software that tracks donations and includes data from various campaigns can help you select the most efficient channels for future communications. The right software also facilitates donor contact, enhancing personal relationships and future donations.

Welter Consulting is a Seattle-based Authorized Abila Partner and Certified Trainer, helping nonprofits select and implement the best fund accounting, grant management, and fundraising solutions for their organizations. We offer software such as Abila MIP Fund Accounting, Abila Fundraising, grant management and many other software selections that can help your organization become more productive and efficient.

Nov 14
0

New FASB Rules Help Nonprofits Tell Their Stories

By | Accounting, FASB, Nonprofit | No Comments

Can you really tell stories with numbers? The FASB thinks so. The new Accounting Standards Update No. 2016-14, Not-for-Profit Entities (Topic 958): Presentation of Financial Statements of Not-for-Profit Entities takes effect for annual financial statements issued for fiscal years beginning after Dec. 15, 2017, and for interim periods within fiscal years beginning after Dec. 15, 2018. The goal is to help nonprofits clearly state, through their financial statements, their ‘story’ so that donors and others can make better-informed decisions.

Welter Consulting helps nonprofits gather and share their financial ‘stories’ through smart money management and software that supports better financial management. As you learn more about FASB Topic 958, consider upgrading your software to provide you with the updated and detailed accounting information that will be required moving forward.

FASB Topic 958

Much has been written in the financial press about FASB Topic 958, or the new Accounting Standards Update. It is the first such update in 20 years and proposes several major changes for nonprofit accounting methods.

These changes include:

* Two net asset classes instead of three.

* Changes in how underwater amounts of donor-restricted funds are reported.

* Requirements to how nonprofits report liquidity risks.

* Reporting expenses by function and nature, as well as an analysis of expenses by both function and nature.

Why all the changes? The FASB recognizes that numbers tell an important story. The public has a right to obtain a clear, concise, and detailed summary of that story through a nonprofit’s financial statements.

Although much of the information was included by nonprofits, the new requirements hope to force nonprofits to accurately, clearly, and completely disclose how they are tracking and using funds.

Donors Require Fiscal Transparency

Donors today are just as philanthropic-minded as past generations. They are, however, deeply concerned that their donations are used for the purposes for which they are given. They want to know that their money is going to fund specific activities. Although most donors do recognize that some money must be spent on operational expenses, most want to see their donation going for the good of the cause or to fulfill the organization’s mission.

You can help donors understand your financial reports in many ways:

* Providing both required disclosure as well as additional, simplified language for the public to explain the numbers on your reports.

* Campaigns to increase awareness for your activities and initiatives.

* Donor outreach and communications, including social media and newsletters that shares how funds are used.

The greater the transparency around how your funds are used, the greater the trust between donors and organizations. The FASB requirement is important to note, but of even greater importance is winning and keeping the public’s trust. Smart nonprofits are already taking steps to ensure that this happens, along with steps to comply with the new FASB regulations.

At Welter Consulting, we are committed to helping you find affordable, useful technology, and to learning how to use that technology to its fullest capacity. We work exclusively with nonprofits and government agencies to help them find and use technology solutions. For more information, please contact us or call 206-605-3113.