403(b) Pre-Approved Retirement Plans

The IRS has recently updated its list of pre-approved retirement irs symbolplans that have received an IRS favorable opinion or advisory letter. This means that the IRS has determined that the plan satisfies the requirements of the Internal Revenue Code Section 403(b).Only certain tax-exempt employers are eligible to sponsor an Internal Revenue Code Section 403(b).  Among those employers which may sponsor such a plan are:

  • Tax-exempt organizations established under IRC 501(c)(3)
  • Public school systems
  • Certain ministers:
    • Employed by a 501(c)(3) organization
    • Self-employed
    • Ministers not employed by a 501(c)(3) organization. but functioning as a minister in their dai8ly responsibilities with their employer.

Choosing a pre-approved plan, may be beneficial to eligible employers over individually designed plans by costing less, knowing that it meets legal requirements and will make necessary updates for you.

Additional resources and information:

Nonprofit Unemployment and Employee Benefit Survey – Society for Nonprofits

nonprofit survey image

Survey Objective: To help identify current trends surrounding unemployment and employee benefit practices within the nonprofit community.

Society for Nonprofits want to hear from you. If you have 10+ full time employees, take a moment and complete the short survey here.


Health Insurance Seminar at Community Foundation of Greater Fort Wayne

Do you find managing group health insurance for your nonprofit a burden and an increasingly larger expense each year? Are health insurance terms like “grandmothered” and “community rating” confusing?  What type of plan is best for your organization – traditional or high deductible? What about an employer sponsored plan versus sending your employees to the exchange? What are some tips for being good health care consumers?  What is the best way to communicate all of this to your employees?Community Foundation of Greater FW

For answers to these questions, and much more, join us on July 27 from 9:00 to 10:30 a.m. at the Community Foundation of Greater Fort Wayne for an interactive Health Insurance Panel Discussion. Panelists include: Jon Albright, General Counsel & Director of Employer Relations, Physicians Health Plan of Northern Indiana; Chad Burch, President of Phillips Benefits Advisors; and, Ryan Stoneburner, Owner of Health Insurance Inc.

Seating is limited. RSVP at http://www.eventbrite.com/e/health-insurance-panel-discussion-tickets-26227607480 by July 22. Please note that each person attending the seminar will have to RSVP individually using the link.

Please be sure to bring your questions!

Income Inequality in Nonprofits

2016-03-30 09.09.10
Amanda Neumann

Economic inequality is a major problem. There are studies upon studies and articles upon articles that discuss the different facets of economic inequality.

Income inequality, one type of economic inequality, refers to the extent to which income (not necessarily wealth) is distributed in an uneven manner among a population.

How can nonprofit organizations help solve income inequality from within?

Nonprofit Quarterly published an article centered on how nonprofits can, at the very least, avoid mirroring practices that perpetuate inequality.

  1. Nonprofit employees should be paid a livable wage, sufficient to afford adequate shelter, food, and the other necessities of life.
  2. Executive compensation should be reasonable and proportionate within the organization’s structure.
  3. Nonprofits should consider capping their pay and publishing their pay ratios.
  4. The civic voice of a nonprofit organization should be applied broadly to advance the organization’s mission and the people it serves, not narrowly used to protect its parochial interests in its own program and revenues.
  5. Governance responsibilities should be broadly shared, not closely held, by recruiting board members who represent the organization’s constituents.
  6. Each organization should assess the ethnic and racial diversity in its leadership as well as elsewhere inside the organization.
  7. Each organization should assess its own equality footprint to examine whether the net effect of its actions increases, decreases, or has no effect on the equality of conditions.

When considering economic inequality, it is important to remember that all inequality is connected. The nonprofit sector must stand to keep equality as a core principle and organizations must take initiative to ensure they do not contribute to, or exemplify, the problem of income inequality.

Questions to Consider:

Is your organization ensuring that all employees are being paid a livable wage that is commensurate with their duties?

Does your organization take the cost of emotional labor into consideration?

Does your organization have pay transparency?

Does your organization have a way to measure its commitment to equality?

Sources & Resources
Not Adding to the Problem: Seven Ways Your Nonprofit Can Avoid Mirroring Practices That Perpetuate Inequality via Nonprofit Quarterly
Fighting Income Inequality Should Be Top Nonprofit Priority via The Chronicle of Philanthropy
Economic Inequality: It’s Far Worse Than You Think via Scientific American
20 Facts About U.S. Inequality that Everyone Should Know via Stanford Center on Poverty and Inequality

New Department of Labor Overtime Regulations Seminar June 29th

Community Foundation of Greater FWThe Department of Labor (DOL) recently released updated rules increasing the salary level used under the Fair Labor Standards Act to determine if employees are classified as exempt from overtime. The new rules go into effect starting December 1, 2016 with the key change being that salaried workers paid up to $47,476 annually must be paid overtime if they work more than 40 hours in a work week. This is the first update to overtime regulations in nearly 12 years and doubles the maximum salary allowed for overtime pay. Is your organization prepared and have a plan for the financial impact?

Make sure you are informed and prepared by joining the Community Foundation for the Overtime Regulations and the Impact for Nonprofits seminar Wednesday, June 29 from 8:30 – 10:00 a.m. at the Community Foundation of Greater Fort Wayne (555 E. Wayne St.).  Thomas M. Kimbrough, Partner Barrett McNagny LLP will discuss the new rule and its implications for organizations, as well as provide helpful tips on discussing the rule with employees.

Thomas M. Kimbrough provides counseling and representation to union and non-union employers in every aspect of employee relations and employment law. He also exclusively represents, counsels, and defends corporations and professional organizations in a number of labor and employment cases. With more than 30 years of experience in defense of companies in discrimination and employment related claims, Thomas also has extensive experience in handling other litigation claims, including insurance defense.

Seating is limited. RSVP at https://www.eventbrite.com/e/overtime-overhaul-preparing-for-the-new-rule-seminar-tickets-25678996570 by June 24. Please note that each person attending the seminar will have to RSVP individually using the link.

23rd @ 4pm: Performance Reviews

Is your nonprofit too small to have a human resources department?

perfreviewSmall nonprofits have limited staff and some of those wear multiple hats so adding HR responsibilities to their duties may mean performance reviews aren’t a top priority.  Part of the difficulty is that nonprofit managers simply don’t have the will to perform unpleasant tasks, like telling someone in their employ how poorly they are doing.

Performance reviews are tough and time consuming, but postponing until a crisis occurs is problematic. Marilynn Fauth will provide resources and examples of the employee assessment process which you may find useful in your nonprofit.

Topics to be covered:

  • Where to find federal and state labor laws;
  • record keeping obligations from the EEOC;
  • the value of self-evaluation forms;
  • elements of a successful assessment process;
  • what questions are appropriate and
  • the best practices in nonprofit HR.

Come to this information session to learn and share your experiences with your nonprofit colleagues! Register for this free program here.

23rd @ 4pm programs are held on the 23rd of every month where the date falls during the work week. They are intended to introduce information in an informal setting in one hour or less and are perfect forums for networking with, and learning from, others in the sector.