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Author: Lydia Alcock


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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 progressive discipline. In a progressive discipline system, the disciplinary measures range from mild to severe depending on the nature and frequency of the employee’s misconduct. An employee moves through the system like climbing a[…]
By Lydia Alcock | March 16, 2018 Read More>
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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 requirements.Elements of an employee orientation include: Personalize the workspace Orient the employee to the office: how equipment works, description of procedures, etc. Introduce the new employee to all the staff,[…]
By Lydia Alcock | March 16, 2018 Read More>
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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 the work is to be performed." The IRS has developed a list of factors that indicate whether a worker is an employee. Some of them include: A person is required to comply with another person's instructions about when, where and[…]
By Lydia Alcock | March 16, 2018 Read More>
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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 Accepted Accounting Principles (GAAP) or Other Comprehensive Basis of Accounting commonly referred to as OCBOA. The audit is an assessment or professional judgment of the financial statements prepared by an organization’s management.[…]
By Lydia Alcock | March 16, 2018 Read More>

What Financial Information Should My Nonprofit Provide to the Board?

Board members are responsible for understanding the financial condition of their organization in order to fulfill their fiduciary obligations. The IRS Life Cycle states that “Directors are stewards of a charity’s financial and other resources. The IRS encourages the board … to ensure … funds are appropriately accounted for by regularly receiving and reviewing up-to-date financial statements and any auditor’s letters or finance and audit committee reports.”Documents the board should receive[…]
By Lydia Alcock | March 16, 2018 Read More>
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Does Our Nonprofit Organization Need a Conflict of Interest Policy?

Nonprofits enjoy the public’s trust, and therefore must comply with a diverse array of legal and regulatory requirements. Organizations should conduct periodic reviews to address regulatory and fiduciary concerns. One of leadership’s fundamental responsibilities is to ensure that the organization governs and operates in an ethical and legal manner. Fostering exemplary conduct is one of the most effective means of developing internal and external trust as well as preventing misconduct. Moreover,[…]
By Lydia Alcock | March 16, 2018 Read More>
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What Is a Conflict of Interest?

Nonprofits enjoy the public’s trust, and therefore must comply with a diverse array of legal and regulatory requirements. Organizations should conduct periodic reviews to address regulatory and fiduciary concerns. One of leadership’s fundamental responsibilities is to ensure that the organization governs and operates in an ethical and legal manner. Fostering exemplary conduct is one of the most effective means of developing internal and external trust as well as preventing misconduct. Moreover,[…]
By Lydia Alcock | March 16, 2018 Read More>
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I’m a Nonprofit Executive Director. Can My Board Hire or Fire an Employee or Tell Me Who to Hire or Fire?

The board is responsible for hiring, evaluating, and, if needed, firing the executive director (ED). Though not illegal, the board should not be involved in hiring, evaluating or firing any other employee. This is the responsibility of the executive director and, if the board takes it on, they are eroding their ability to hold the ED accountable. Remember: the board is responsible for governance; the ED is responsible for the day-to-day operations. Keep the lines as sharply drawn as you can!For[…]
By Lydia Alcock | March 16, 2018 Read More>
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Can Nonprofit Executive Directors Serve on the Board?

Best practices suggest that it is not a good idea to have the Executive Director playing such a role within the organization, whether the position is a voting or non-voting position. Keep in mind the following precautions if the organization decides to place its executive director on the board: While it is not uncommon for executive directors to serve as non-voting members of their organizations' boards, this can lead to a tricky legal situation. Board members are bound by legal and fiduciary[…]
By Lydia Alcock | March 16, 2018 Read More>
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