Maryland Latinos Unidos

Policy Alert: Reimbursement of Indirect Costs on State Grants and Contracts (SB 1045)

Senate Bill 1045, enacted by the 2018 General Assembly, is a modest step to help the sustainability of our smaller nonprofit service organizations, and to streamline and simplify the treatment of indirect costs across state agencies and other intermediaries (or ‘pass...

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What Kind of Insurance Do I Need for My Nonprofit?

Most nonprofits need General Liability insurance and Directors and Officers (D&O) insurance. If the organization has employees, workers compensation insurance, as well as other insurance offered to employees as benefits such as health, dental, and life insurance...

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Can My Nonprofit Pay a Fundraising Consultant a Percentage of What They Bring In?

The short answer is, you should not. It is best to work with consultant on a fixed fee basis for a body of work agreed upon in writing or on an hourly basis with some stipulation on how hours will be approved. The Association of Fundraising Professionals (AFP) Code of...

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At What Rate Should Nonprofits Reimburse Employees and Volunteers for Travel?

Reimbursement Policy An organization’s policy should be to reimburse employees and volunteers for necessary and reasonable travel expenses incurred for authorized business. The intent of the policy should be that reimbursement is fair and equitable to both the...

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How Much Severance Should My Nonprofit Organization Give?

Employers are not obliged to give severance pay. The law only requires an employer to give severance if it has been promised in a contract, or stated in an employee handbook, or if there is an established pattern of giving severance to other employees in similar...

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An Employee at My Nonprofit is Not Performing Well; What Do I Do?

All employers should expect their employees to meet established standards of attendance, performance, and conduct. If, after going through the performance appraisal process, employees cannot or will not improve their poor performance, the next resort for a manager is...

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How Do I Orient My Nonprofit’s New Employees?

It is a good idea to have a formal orientation program so that all newly hired employees get the same treatment and information. This orientation period will probably last several weeks. You will want to be both welcoming to your new employee, and attentive to legal...

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Should Our Nonprofit’s Executive Director be an Employee or an Independent Contractor?

1. The IRS will make its own assessment of whether a person is an employee or independent contractor of an organization based on the level of control the employer has over that hired person’s conduct and work. It is important for the organization to evaluate...

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What is the Difference Between a Nonprofit Employee and a Nonprofit Independent Contractor?

Employee – Black’s Law Dictionary describes an employee as “A person in the service of another under any contract of hire, express or implied, oral or written, where the employer has the power or right to control and direct the employee in the material details of how...

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When Does My Nonprofit Organization Need an Audit?

An annual audit is an examination of an organization’s financial systems and transactions at the end of a year by an independent, certified, professional auditor. The audit assesses whether or not financial statements have been prepared in conformity with Generally...

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