In this episode of Nonprofit Horizons, host Bryce Lord dives into the recent changes to federal overtime rules that are shaking up the nonprofit sector. With new thresholds set by the U.S. Department of Labor, nonprofits face significant challenges in balancing fair compensation with limited budgets. Bryce breaks down what these changes mean, the potential impact on organizations and employees, and offers actionable strategies for nonprofits to ensure compliance while fostering a culture of fairness and sustainability. Tune in to stay informed and prepared as these regulations take effect. Show Notes: Key Topics Discussed: * Introduction to the new overtime rules and their impact on nonprofits. * The financial and administrative challenges posed by the new regulations. * The importance of fair compensation in nonprofit organizations. * Strategies for compliance, including employee reclassification, salary adjustments, time tracking, and policy updates. * The broader implications for employee morale, retention, and organizational sustainability. Resources: * U.S. Department of Labor – Final Rule on Overtime * National Council of Nonprofits – Impact of Overtime Rule on Nonprofits * HR Resources for Nonprofits * Time Tracking Tools for Nonprofits If you found this episode helpful, please subscribe to Nonprofit Horizons, share it with your network, and leave us a review. For more information or to ask questions, reach out to us directly a hbi-info@uwm.edu. Let's keep the conversation going on how to build a more sustainable and equitable nonprofit sector. Hosted on Acast. See acast.com/privacy for more information.

In this episode of Nonprofit Horizons, host Bryce Lord explores the strategies and benefits of federally negotiated indirect cost rates (NCRA) for nonprofits. Indirect costs, which include expenses such as accounting, IT, HR, facilities, and administration, are essential to the smooth functioning of nonprofit organizations. However, recovering these costs can be a challenge. NCRAs provide a way for nonprofits to reclaim some of these crucial overhead expenses and stabilize their funding.

Bryce explains the concept of NCRA and its importance in ensuring financial sustainability for nonprofits. He highlights how a well-negotiated NCRA can secure a higher rate, sometimes up to 30% to 40%, compared to the default rate of 10%. This additional revenue can make a significant difference in investing in staff, infrastructure, and capacity building.

To help nonprofits navigate the process of obtaining a NCRA, Bryce outlines the key steps involved. This includes identifying the cognizant federal agency, gathering detailed financial records, and submitting an indirect cost proposal. He emphasizes the importance of justifying costs and demonstrating their criticality to program success during the negotiation phase.

The episode concludes with a reminder of the bottom