Feeling underpaid and overworked at your nonprofit organization? For many nonprofit workers, such conditions are the norm. Nonprofit employees are often willing to accept less pay than their private-sector counterparts because they also enjoy rich non-financial rewards: helping others in need, serving worthy causes, and achieving goals not attainable through ordinary economic forces. According to a recent Wall Street Journal article, however, top executives at some charities are increasingly very well paid. The article states that over 2,700 top executives made more than seven-figure salaries in 2014. How can some nonprofits justify such high salaries, and what can the rest learn from them?
Nonprofit organizations may legally provide severance pay. But under what circumstances, and how much? How do unemployment benefits fit with severance? And why put it in writing? Whenever a nonprofit employer considers whether to provide severance pay to a terminated employee, many significant questions can arise warranting careful evaluation of several factors including risk management, stewardship, fairness, and practical business decisions.
Reimbursing employees’ health insurance premiums and other health costs on a pre-tax basis again is available, thanks to the 21st Century Cures Act signed recently by President Obama. The law becomes effective January 1, 2017. A few words of caution - the law applies only to “small” employers, and it contains other significant limitations that could render it inappropriate in many circumstances.