​Be transparent.
Build trust.
Strengthen relationships.
Raise more money.
Repeat.
 
There you have it: the secret to nonprofit success!
 
If only it were that simple, right?! The most successful development professionals and their nonprofits spend years building trusting relationships with their donors. Trust is not easily earned and it’s as fragile as glass. But did you know that new research shows that financial transparency is key in the trust-building process? Donors who see the financial impact that their funds make on your mission are more likely to give again.  So, why do so many nonprofit organizations only share financial data internally? Did you know that sharing financial data with donors can change the fundraising game for your organization?
 
Here’s the research to back it up: the Give.org Donor Trust Report and research by GuideStar prove a positive correlation between organizational transparency and donor giving.  When the first goes up, so does the other.
 
So, what does it mean to be transparent? What can you do to infuse transparency into your organization?
 
Our team at Blue Fox created a step-by-step guide to guide you through this transformative process. And our recommendations are not as abstract as you might think.
 
Here’s what we know: Donors want to see the impact of their dollars. They need to know each and every penny (hey, that’s our mascot’s name!) is leveraged to its fullest. They want all the feel goods that come from giving to their passion. So, let’s show them!
 
Here’s what you do…
 
6 Steps to Build a Transparent Nonprofit Organization:
 
Step 1:
ORGANIZE: Your Financial Systems & Information
Honesty is the best policy. This is especially true when it comes to the financial data you share with your board members, staff, committees, donors and the community as a whole. Only share financial information if you’re 100% sure it’s accurate. Start here:

• Make sure your books are up to date.
• Streamline processes to ensure anyone with access to financial information is entering data in a consistent and accurate way.
• Consider hiring an outsourced accounting firm (like us) to seamlessly manage your back office or to simply complete an comprehensive review of your financials (You can bet that GuideStar’s team will be doing a deep dive review of your financials if/when you apply for their Seal of Transparency).

 
Step 2:
TEACH: Educate Your Staff & Board
Whether you realize it or not, your entire internal team (staff and board members) are walking, talking promoters and fundraisers for your organization. It’s time to educate them on the innerworkings of how the organization operates, the current state of the financials and future needs. Educated employees are empowered employees. Now that your financials are squeaky clean, use them to mobilize your team:

• Review financial statements at staff meetings (you’ll be shocked how this can motivate people)
• Use dashboard style reports at board meetings to get their attention.
• Analyze financial information with your team to reveal what the data is telling you

 
Step 3:
PROVE: Your Credibility, High Standards & Stewardship
You’re on the way to financial stewardship excellence and it’s time to prove it. Disclaimer: this step may take some time but it’s worth it. Keep your eye on the prize and remember that checking these boxes will build the foundation for your new level of transparency. This is the step where you generate the powerful content for your future public relations efforts (steps 5 and 6).
 
(1) Certifications, accreditations and memberships are a sure-fire way to boost your credibility and legitimacy (a.k.a. trust) in the eyes of donors.

• GuideStar Seal of Transparency
• Mission-aligned accreditations
• Memberships with professional alliances
• Personnel certifications (Ex. Nonprofit Leadership Alliance NCP)

 
(2) Schedule a brainstorming and analysis session with your team. It’s time to build a financially data-driven list of your organization’s accomplishments and future goals. What do we mean by data-driven? Use your financial data to frame your story (percentages, numbers, benchmarks). Some of these might seem basic, but many organizations overlook them:

• Our fundraising events cost $____ per attendee
• We are 85% funded to launch XYZ new program
• Our overall budget grew by X% last year allowing us to serve X# of more…
• If we want to bring in $____ in money next year, it means either raising program fees to ____ or getting XX donors to give at $____ level or higher

 
Step 4:
ALIGN: Your Funding Needs & Systems
Okay, so you’ve got ducks in a row internally. You know where you’ve been and are excited to tell the world where you’re going, with data to back it up! But, wait! There’s one more step before you can package the information and shout it from the roof top. Make sure to coordinate your fundraising efforts with your marketing messages. Ask yourself these questions:

• What are your most pressing funding needs based on your data?
• What funding requests in the pipeline will appreciate your new transparency-based communications? Do not miss this opportunity to ask for support!
• Do your donors receive follow-up communication after making a contribution and how can you integrate transparency-related messages?

 
 
Step 5:
DEVELOP: Your Key Messages & Marketing Collateral
It’s time to call in the marketing team! (If you don’t have one, consider trading sponsor visibility with a local agency.) This is when you compile your data-driven information, accomplishments, accreditations and certifications in an easy-to-digest manner (everything from step 3). Here are some suggestions:

• Write a press release
• Create an infographic
• Create graphics
• Write blurbs and summaries
• Create a visually-appealing annual report

 
BRING IT HOME: Your primary messaging goal is to show that you’re a financially responsible, trustworthy organization that uses every dollar raised to provide services to your community. Always bring your messages back to how donors are making an impact. Use the data to tell a story and don’t be afraid to pull some heart strings.
 
Step 6:
PROMOTE: Publish, Send, Schedule, Post, Share, Spread the Word!
It’s time to publicize the whole kit-and-kaboodle. You’ve prepared all of your data-driven key messages and connected them to fundraising appeals. Now it’s time to spread the word:

• Share information on your website
• Send your press release
• Communicate with email subscribers
• Integrate your messages into event announcements
• Hold an event to celebrate a major accomplishment
• Schedule social media posts
• Weave messages into fundraising collateral
• Update signage (for high traffic and even-based nonprofits)

 
If you’ve read this far, congratulations! It takes massive effort and commitment from the very beginning to become a more transparent nonprofit. But the reward is worth the work. Take these steps one-by-one. Eat that elephant in bite size pieces. And, when you’re finished, donors will see your organization as a highly trustworthy and impactful place to invest.
 
And remember, our team of nonprofit financial gurus can provide back office support along your journey. The best time to ask us for help is the very beginning (step 1). Whether you need bookkeeping services or help with financial analysis, Blue Fox is here to help.
 
Your financials have a story to tell. Let’s start listening and telling that story!
 
Authors:
Chantal Sheehan, Founder & CEO, Blue Fox
Chelsea Clementi, Director of Marketing, Blue Fox

Nonprofits everywhere equate fundraising with tireless event planning, digital crowdfunding, relationship building, and writing grants. But we would offer that before your staff gets to work, the finance and development teams should have a solid understanding of the organization’s financial position. That information can help light a fire with the staff and board, shape your giving goals, and inform the messaging of your appeals.
 
So, we put together this handy checklist to help you get your financial house in order before you launch your next fundraising initiative. We’re pretty sure this is the first list of its kind – so enjoy and let us know how we can help!

CLICK HERE to download the goods!

If you’re like us, your daily inbox is jam-packed with newsletters and educational opportunities from like-minded social impact leaders. These spectacular humans work around the clock to foster positive change in their communities. Then, somehow, find time to share their story with fellow nonprofit enthusiasts. We tip our hat to them!
 
Here are just a handful of our favorite nonprofit resources this month:
 

• (TRENDS) The Top 5 Fundraising Trends in 2020
• (WEBINAR) 5 Ways to Transform Your Year-End with a Donor Management System
• (ARTICLE) Why January Is the Most Important Time for Donor Retention
• (WEBINAR) Let’s RAP – Creating a MAJOR GIFT Relationship Action Plan
• (MYTH BUSTER) 3 myths about creativity that are probably holding you back

 
 
Thanks for stopping by to read our picks for top nonprofit news this month! If you’re interested in hearing more from us, subscribe to our newsletter today!
 
About Blue Fox: Our team provides customized, boutique financial and back office services for social impact organizations. Services range from standard bookkeeping and payroll services, to coaching and consulting, to comprehensive virtual CFO services. Our mission is to disrupt the traditional accounting model through technology, innovation, and a radically client-focused approach that truly empowers nonprofits and social enterprises. For more information call (321) 233-3311, email hello@yourbluefox.com, and visit www.YourBlueFox.com. 

Melbourne, FL (December 19, 2019) – Chantal Sheehan, Founder and CEO of Blue Fox was recently named a speaker for NTEN’s 2020 Nonprofit Technology Conference (20NTC). The conference will take place March 24-26 at the Baltimore Convention Center in Maryland.
 
Dubbed by her clients as a nonprofit numbers guru, Sheehan will speak on how to have meaningful financial conversations with a nonprofit board of directors using the latest and greatest financial technology. Her presentation, 4 Strategies for Meaningful Money Conversations with Your Board, will introduce actionable strategies for nonprofit executives to use in the board room: financial dashboards, reporting tools and visual conversation starters.    

[Related: How to Wow at Your Next Board Meeting: 4 Tips for Meaningful Money Conversations]
 
She explains, “Discussing financials with your board can be stressful. You’re often met with blank stares, irrelevant questions or surprise concerns. There has to be a better way. A better way to guide financial conversations. A better way to present the data. A better way to tap into the knowledge, experience and leadership that sits around your board room table. And, a better way to show your board that you are responsibly steering the ship.”
 
With over 2,000 attendees, NTEN’s Nonprofit Technology Conference gives nonprofit leaders the opportunity to learn how technology can help them more efficiently serve their communities and create change. Organizers explain, “20NTC is designed to help you reinvigorate your work and bring that renewed passion back home.”
 
Sheehan is a nonprofit organizational leadership expert and financial management coach with over 15 years executive-level experience across the private and public sectors. She guarantees 20NTC attendees a fast-paced session loaded with takeaways.
 
As an avid blogger she spices up the topic of financial management in publications for Bill.com, Bloomerang, and Hive. Her company blog at www.yourbluefox.com features content aimed to educate and empower nonprofit and social enterprise professionals. From QuickBooks hacks to advice on how to talk finance with a board of directors, the Blue Fox blog has it all. 
 
A recovering nonprofit executive director herself, Sheehan started Blue Fox in 2015, and the company has doubled or tripled in size each year in response to high demand.  For more information about Blue Fox call (321) 233-3311, email hello@yourbluefox.com, and visit www.yourbluefox.com.
 
###
 
ABOUT BLUE FOX: Blue Fox provides customized financial and back office services for social impact organizations (nonprofits and social enterprises). Services range from standard bookkeeping and payroll services, to coaching and consulting, to full-blown virtual CFO services. The Blue Fox mission is to disrupt the traditional accounting model through technology, innovation, and a radically client-focused approach that truly empowers nonprofits and social enterprises. For more information call (321) 233-3311, email hello@yourbluefox.com, and visit www.yourbluefox.com.

When Bill.com calls to interview your CEO, you jump at the opportunity! Especially when they mention that your CEO is viewed as an industry-leading financial services provider and they want to share her expertise. And, now we’re blushing!
 
READ THE FULL INTERVIEW HERE:
Blue Fox, AI, and Maximizing Value for Accounting Clients
 
Our CEO, Chantal Sheehan has first-hand experience with the challenges that nonprofit face and has structured Blue Fox services to support those unique challenges. In this interview, she explains how Blue Fox takes advantage of Bill.com’s AI-powered Intelligent Virtual Assistant to most efficiently serve clients.
 
One of our favorite quotes from the interview is when our CEO, Chantal Sheehan said, “We focus on leveraging technology like AI so that we can apply human time where it counts for clients.” This is part of the Blue Fox philosophy and why we work so hard to provide the latest and greatest technology solutions for our clients.
 
If your nonprofit or social enterprise is looking to professionalize your back office operations, give us a shout any time at (321) 233-3311 or hello@yourbluefox.com.

CFO. Chief Financial Officer. Head Honcho of All the Numbers.
 
If you’ve ever met one, your mental picture of a traditional CFO is likely one of a middle-aged white guy wearing glasses, khakis, and a button down shirt hunched over a computer with paperwork all over his desk. Let’s call him Bob.
 
We’re happy to report that, while Bob lives on in many businesses, a growing trend in finance is about to disrupt the C-suite for good. Enter the outsourced, virtual CFO, or vCFO.
 
If you’re unfamiliar with the concept, vCFOs may be called outsourced, part-time, or fractional CFOs. Google those terms and be amazed at the number of results. We think that 2020 will be another banner year for outsourced CFOs everywhere, so we thought it might be time to break it down for you.
 
Here’s what you need to know:
 
(1) WHO
vCFOs may either be a firm or an individual. Usually they are CPAs, senior accountants or bookkeepers, or other experienced and educated individuals who’ve held CFO or senior finance or accounting roles in the past. Likely female (more than half of all accountants in the US are women), these folks are highly skilled numbers nerds who can fill the CFO role just as well as (better than?) Bob.
 
(2) WHAT
What does an outsourced CFO do? She may be charged with a variety of tasks including bookkeeping, accounting, month-end closes, payroll, and financial reporting. But the real leverage in a vCFO is the strategic guidance and financial planning she provides. Interpreting financial data in a way that makes sense to other members of the C-suite is job #1. The rest of the job is to take a proactive approach to finance with sustainability in mind. A vCFO helps organizations streamline its financial systems and processes, develop strategic budgets, manage financial risk, raise capital, and figure out exactly what is needed to get from where your business or nonprofit is today to where you would like it to go.
 
(3) WHY
A growing number of nonprofits and social enterprises turn to vCFOs for these reasons:

• They need the expertise that a CFO provides, but they don’t need it full-time.
• Resource constraints make hiring a qualified in-house CFO impossible. (Sorry, Bob. You just cost too much.)
• With so many vCFOs out there, you can find one whose niche is nonprofits or social enterprises and know that they will be experts in the challenges your specific industry faces.
• Unlike a new hire, professional vCFOs are used to jumping into a business mid-stream, so the time it takes for your investments in that role to yield results is 1-3 months instead of 6-12.
• Unbiased, impartial advice is a hallmark of the vCFO. Unlike an in-house staffer, vCFOs make decisions based on data and expertise. Their singular agenda is to make your organization sustainable and successful.

 So to sum up, you can get the expertise you need at a fraction of the cost.
 
(4) WHEN
When to hire a vCFO is something we’ll cover in a future blog, but a different type of when question we get about Blue Fox is: when can we call you? The answer is: anytime. One big bonus of a vCFO is that, in most cases, they are available to support you, ask questions, present at meetings, and generally do whatever you need them to do anytime. 100% uptime, to poach a tech industry phrase. That’s because vCFO firms like ours pair a bookkeeper and a senior accountant on each client’s work. You can always reach someone on your virtual finance team and you’re never left in the lurch. Again, our singular agenda is: support you and your organization to the best of our ability at all times.
 
(5) WHERE & HOW
This is an easy one – outsourced CFOs can be remote and tend to deliver their services through cloud-based technology. It’s actually the recent evolutions in cloud-based accounting tech that make what we do possible – 10 years ago, the tech just wasn’t there. But now we can work with any client anywhere at any time. As a vCFO client, that also means you can pick from the nation’s top service providers, rather than just your local market. You can source vCFOs who specialize in your industry, and they can work for you from anywhere. Video and conference calls bridge the communications gaps, and our cloud-based tools allow us to securely exchange data and provide live, real-time accounting information all day long.
 
Hopefully, now you can see why one of 2020’s hottest business trends will continue to be the rise of the virtual CFO. Your nonprofit or social enterprise can be an early adopter. Start the new year off with fresh and clean books, and the leverage a vCFO can provide to ensure you lead with 20/20 vision for this year and beyond!

Author: Blue Fox Founder & CEO, Chantal Sheehan

If you’re like us, your daily inbox is jam-packed with newsletters and educational opportunities from like-minded social impact leaders. These spectacular humans work around the clock to foster positive change in their communities. Then, somehow, find time to share their story with fellow nonprofit enthusiasts. We tip our hat to them!
 
Here are just a handful of our favorite nonprofit resources this month:
 

• (CONFERENCES) Top 8 Nonprofit Conferences for 2020
• (IT'S PERSONAL) Four Tips to Boost Your Personal Resilience While Doing Nonprofit Work
• (QUICK FACTS) 5 Quick Facts About Artificial Intelligence that Nonprofits Shouldn’t Ignore
• (REPORT) Snapshot of Today's Philanthropic Landscape
• (WORKBOOK) Nonprofit Marketing Best Practices Workbook

 
Thanks for stopping by to read our picks for top nonprofit news this month! If you’re interested in hearing more from us, subscribe to our newsletter today! 

WHY YOU NEED OPERATING RESERVES
 
The news is full of warnings about the next economic downturn and possibly even a recession. Is your nonprofit ready? Is your financial house in order? Is your capital position and structure strong enough to withstand the ebbs and flows of our economic system?
 
Recession aside, does your organization have enough moolah in reserves in case your air conditioner goes out (a catastrophic event in our sunny state of Florida)? And if your funds are used for an unexpected occurrence, will you still have the ability to deliver services in your community? This article is all about shoring up your ability to sustain operations when the unexpected happens (like when your office temp is 88 degrees) internally or externally.
 
First off: do you have an operating reserves policy? If so, when is the last time your leadership team reviewed the policy? If it’s been a while read on as we guide you through the process of building an operating reserves policy, and the implementation and ongoing oversight of that policy. 
​
[ALSO READ: 5 Key Elements You Need in Your Operating Reserves Policy]

According to Propel Nonprofits, “An operating reserve is an unrestricted fund balance set aside to stabilize a nonprofit’s finances by providing a cushion against unexpected events, losses of income, and large unbudgeted expenses.” Likewise, an operating reserve policy is meant to, “define and set goals for reserve funds, clearly describe authorization for use of reserves, and outline requirements for reporting and monitoring.”
 
Our team at Blue Fox hears comments like this all the time, “Yes, we have a policy. I think my operations coordinator found a sample on some website. We presented it to our board a couple years ago and they approved it right away.”
 
Oh boy do comments like that scare us!
 
Look, it’s helpful that your nonprofit found a sample policy on the interwebs for free. But that’s all it is – a sample. A starting point. The very first step in the process.  Your organization is not like others. Your cash flow is different. The diversity of your income varies. And your liquid assets are unlike that of the organization that wrote the sample. Your operating reserve policy should be as unique as your organization, plain and simple.
 
So, let’s talk about the best practices for starting an operating reserves policy. And don’t hesitate to call on the Blue Fox team for advice and support along the way. We want all the organizations in our den to achieve fiscal sustainability and security. We can help assess your financial position today and provide some benchmarks to help you make decisions as you set up your operating reserves for tomorrow. 

HOW TO START AN OPERATING RESERVE
 
As with most strategic decisions, the first step is to broach the conversation with your board and/or finance committee. Your treasurer, in particular, is a good first call. If you already have a policy in place, request a call to discuss revising/refinement of the policy. Most boards are eager to have this discussion because they understand the importance of a rainy-day fund.
 
Once you have board buy-in the next step is to get your collective arms around how much you want to allocate to reserves. When times are good and the bank account is flush it can be tempting to allocate TOO much. (Especially if your organization suffered during the Great Recession.) On the flip side, some leaders skew to saving too little. We want to Goldilocks this thing and get it juuuust right. How?
 
In order to determine the target reserve amount, you’ll want to take a look at your organization’s historic “burn rate” – i.e. how much you spend each month to keep the lights on, pay your staff, and, critically, deliver on your mission. How far back you should go to determine your burn rate can vary, but a good rule of thumb is to look at your average monthly spending for the last 12-24 months. Most accounting software should be able to produce a profit and loss report broken down by month for any given period. That’s the report you want to start with.
 
As you review the data, you’ll next want to back out/offset your expenses by any unusual expenditures that occurred within your report time period. For example: if your organization went through a website redesign over a 6-month period in the last year and it cost $60k, you’re going to want to subtract $60k from the total expenses during that period. The idea here is to back out expenses that won’t be normal and recurring.
 
The next step is to settle on how many months of expenses you want to (or are able to) set aside. Smaller organizations may be comfortable with 1-3 months, or even just enough to cover 1 pay period. Large organizations may take a more aggressive approach to saving and shoot for 12+ months of reserves. No more than 2 years of operating expenses should be held in reserve.
 
We find the sweet spot for most nonprofits is 6-9 months of expenses.
 
Once you have an amount in mind and the data to back it up, propose it to your board/treasurer/finance committee and discuss. With their blessing you can move forward with developing a policy.

TIP: Don’t move any money or add “operating reserves” to your books as a line item until you have an operating reserve policy approved by the board!

 
BEST PRACTICES TO LEVERAGE YOUR RESERVES: THE POLICY ITSELF IS THE KEY
The first step in deriving leverage from your operating reserves is to structure a board approved operating reserve policy for its use. If you have a sample, great. If not, you can easily find one online through a search. We recommend the staff/leadership develop a policy draft and then pass it to the board/finance committee for review, feedback, and approval.
 
We recommend that your policy should have these 5 key elements in order to be fully and appropriately leveraged!

​Once your policy is drafted with solid answers to these questions, you’ll want to put it back in front of your finance committee/board for review and discussion. Policy approval should be unanimous. All board members should be on the same page with this strategic use of capital! If consensus is hard to find, keep working until you get there. What you don’t want is a dramatic, painful moment when you eventually have to use the funds. So bring everyone together on this from the get-go.
 
When you get approval, go ahead and move that money (if you have it) or formalize your procedures for building the fund. Be sure to add the operating reserves to your accounting general ledger, too, so it’s clearly there for all to see.
 
Operational touchstones like operating reserves aren’t sexy, we know. But there is no doubt that, as with our own individual savings accounts, we feel better when we know that emergency fund is there. We feel empowered to move ahead with our lives and financial decisions. We feel confident in our ability to deliver the critical services and support that we do to all our stakeholders and clients. 

If you need assistance starting or updating your operating reserves policy, Blue Fox is happy to consult with your leadership and we will even take those pesky tasks like bookkeeping, payroll and tax prep off your hands. We do that too! Give our friendly team a call any time at (321) 233-3311 or email hello@yourbluefox.com.

Authors: Blue Fox CEO, Chantal Sheehan and Blue Fox Director of Marketing, Chelsea Clementi

Nonprofits, take note.  This is important!
(This also applies to the for-profit social enterprises we serve too!)
 
Over the past month, we’ve answered these questions a lot:

• How will changes to the federal overtime law will affect my organization?
• Do we need to restructure how we pay employees?
• When do changes need to be in place?
• Do commission and bonuses count toward the salary minimum?
• Can you help me calculate and weigh my options? (Of course! Let’s schedule time.)

 
After explaining this for the umpteenth time last week, our ‘let’s blog about it’ light bulb went off and we started to write. Hopefully, we can provide some clarity and if you want to chat in more detail, just call us at (321) 233-3311.
 
But first, if you are new to the nonprofit HR or management game, you may want to brush up on exempt verses non-exempt employee status.
 
THE NITTY GRITTY
 
[Grab some water, this section is dry]
 
On September 24, 2019, the U.S. Department of Labor announced a final rule that “updates the earnings thresholds necessary to exempt executive, administrative and professional employees from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime pay requirements, and allows employers to count a portion of certain bonuses/commissions towards meeting the salary level.”
 
Effective January 1, 2020, the rules governing overtime pay for non-exempt workers will change to the following:

• The “standard salary level” will go up from the currently enforced level of $455 per week to $684 per week (equivalent to $35,568 per year for a full-year worker);
• The total annual compensation requirement for “highly compensated employees” increases from the currently enforced level of $100,000 per year to $107,432 per year;
• Employers may now use nondiscretionary bonuses and incentive payments (including commissions) paid at least annually to satisfy up to 10% of the standard salary level, in recognition of evolving pay practices; and
• Changes to the special salary levels for workers in U.S. territories and the motion picture industry.

 
Before we delve into how the new overtime law affects the nonprofit industry, know that not all states have the same guidelines. Quite a few states have salary thresholds higher than the FLSA. For example, California’s ceiling for a non-exempt employee is $49,920. Visit your State Department of Labor before making salary changes.
 
DID YOU KNOW? 
The nonprofit industry now employs over 12.3 million people which is 10% of the US workforce. Even more inspiring to us: according to the 2019 Nonprofit Employment Report From Johns Hopkins Center for Civil Society Studies, “Nonprofit jobs grew almost four times faster than for-profit jobs over the last decade.”
 
It’s clear that updates to the federal overtime law will significantly affect the nonprofit sector and its employees.
 
SO, WHAT’S A NONPROFIT TO DO?
Accept the change.
Don’t hyperventilate.
Start thinking proactively about 2020.
Everything will be just fine!
 
It’s time to evaluate your people resources. The new year is knocking on our door. Take a look at each of your staff member’s compensation and overall staffing structure.
 
As you do this, consider these 4 questions:

• Are your staff members currently being compensated appropriately? This is the very first question to answer because if your employees are classified incorrectly (exempt versus non-exempt), your organization is at risk for fines, legal trouble, staff morale issues and consequently some bad PR. Check out the The Exemption Test from University of Minnesota’s Office of Human Resources.  You will also want to evaluate at your employees whose salaries border the new standard salary level. Does it make more sense to pay them occasional overtime pay or transition them into a role that fits exempt status?
• Are you leveraging your staff members time efficiently? Every member of our team at Blue Fox has significant nonprofit experience. So, we get it. The industry comes with long hours and we don’t get paid like they do on Wall Street. It’s the feel goods that make us stay! Our philosophy at Blue Fox is that nonprofits should run their back-office operations like a for-profit. Your organization must make efficient use of staff time. (And they will thank you for it). Ask yourself if all of your employees need to attend every after-hours event. Does the office need to open at 8:00 a.m. or would 9:00 a.m. work? Can you shift program calendars for more consistent week to week staffing needs? And, don’t get us started on the time suck of unnecessary meetings?!
• Will the changes above affect your ability to provide services? So after reading the second bullet above, you may see a need to adjust how your team is spending their time. But be mindful that any changes don’t affect your ability to provide services. You do important work and it’s not time to compromise the vital resources your community needs. That leads me to the next point…
• How will your organization fill the funding gap for staffing cost increases? So, let’s say you’ve evaluated your staffing structure and the ‘thing’ that has to give is simply paying your employees more to maintain the hours they work. We love this option, by the way, but it comes with a cost (pun intended). In this case, you’ll need to figure out how to fund the cost increase. Check this out: A few years ago when the overtime rules were first proposed, our friends at NonprofitAF published this article. We particularly love the section about funders responsibilities. It offers several helpful tips on getting funders on board to support the organization’s changing needs.

 
Need more help? I bet that your local or regional Chamber of Commerce has information on this matter and they may even be holding workshops or Q&A sessions. Or, consider becoming a member of SHRM. Their members section has a digital FLSA Exemption Questionnaire to help you make the determination if an employee is exempt or not.
 
2020 is coming quick. If you need additional assistance, Blue Fox is happy to consult with your leadership and we will even take those pesky tasks like bookkeeping, payroll and tax prep off your hands. We do that too! Give our friendly team a call any time at (321) 233-3311 or email hello@yourbluefox.com.
 
Oops, just went over 40 hours. Gotta’ go!
 
[The information contained in this article is not legal advice and is not a substitute for such advice. State and federal laws change frequently, and the information in this article may not reflect your own state’s laws or the most recent changes to the law.] 

Author: Chelsea Clementi, MBA, Director of Marketing & Business Development for Blue Fox
​
Resources:

• Johns Hopkins University, Center for Civil Society Studies 2019 Report
• NonprofitAF, Why the new overtime rules are good for nonprofits and thus for our community
• The Balanced Careers, Difference Between an Exempt  and a Non-Exempt Employee
• University of Minnesota, FLSA Exempt and Nonexempt Defined
• U.S. Department of Labor, U.S. Department of Labor Issues Final Overtime Law

A bookkeeper in a small office opens the top drawer on her desk over and over throughout the day. She opens it slowly, peers in at something, closes it, and then returns to her accounting on her computer. She does this multiple times a day. 

She locks the drawer every night before she leaves, and the other office staff gossip quietly every day about what's in the drawer. Chocolate? Can't be. It's not edible. A pet rock? Possibly. She's a little quirky. They speculate endlessly.

One day, the bookkeeper dies suddenly. The business owner gets her desk drawer keys from her family a few days later. The office gathers around as the big secret of the drawer is revealed. What's in it?

A simple piece of paper with the words "Accounting Bible" at the top. On the sheet is a strange coded set of words and symbols labeled "T-Accounts." The office staff stares in wonder, unable to make anything out of it. Then someone puts it back in the drawer and they walk away... Guess she really was an odd duck.

Get your very own Accounting Bible here ;)