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Introduction

Let’s face it — it’s almost impossible to focus on fulfilling your organization’s mission when you’re stuck in the office dealing with human resources issues. All organizations face HR challenges in their day-to-day operations, and nonprofits are no exception. While both for-profit and nonprofit companies have similar needs, nonprofits operate in such a way that it can make finding HR solutions even more daunting. Having charitable status often exacerbates HR issues, due to additional obstacles such as limited financial resources or difficulty in finding and retaining talent. Outsourcing these tasks to a Global Professional Employer Organization (PEO) can help nonprofits, especially those with international operations, overcome these issues. A global PEO provides outsourced HR services, including payroll, benefits administration, tax filing, and much more.

 

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Key Ways That a PEO Can Help Your Nonprofit Overcome HR Challenges

Benefits Administration

Nonprofits often struggle with offering the same sort of benefits as for-profit companies.

A PEO can handle all the health insurance needs for your employees, including open enrollment, setting up an HSA, and more. When your nonprofit partners with a global PEO, it becomes more competitive with larger companies.

You get access to a portfolio of benefits that you could not get on your own, which evens the playing field and enables you to secure top talent. These benefits include better insurance plans, lower rates, clearer pay structures, and access to features like retirement accounts.

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Quarterly Tax Filings

A requirement to retain nonprofit status, accurate and timely tax filings can be entirely managed by a Global PEO that has experience in the nonprofit space.

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Claims Management

Nonprofit workers need to know that they are covered when an on-the-job injury takes them out of commission. Having a reliable workers' compensation claim management strategy is one of the many ways a PEO can help.

Also, the fiduciary responsibility will shift from the board of directors to the global PEO as the latter takes on the responsibility of tax payments, unemployment claims, risk management, and workers’ compensation insurance.

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Compliance Issues

When you partner with a global PEO, they assist you in areas of compliance so you don’t have to worry about complex regulatory issues. If you rely on grants, for example, your grant application must show that you are an employer in good standing and that you meet all federal and state requirements for a company your size.

Many nonprofits don’t have the expertise to handle compliance issues, and incorrect answers to these questions can be a liability. That’s where a PEO can help.

A PEO can even assist by creating handbooks covering policy requirements and critical information that needs to be communicated to employees.

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Time Savings

With the help of a global PEO, you will spend less time on things that don’t contribute to your mission, freeing up time to spend working on important tasks like programs and fundraising. The PEO takes time-consuming activities—like payroll and recordkeeping—off the desks of employees and volunteers to make room for the work that serves the nonprofit’s mission.

Cost Savings

The global PEO eliminates the need for a Human Resources department, saving personnel and administrative costs. Your executive leadership team and board of directors are also relieved of professional liability relating to employment issues, which can be quite costly.

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Recruitment and Retention

Running a successful nonprofit  requires a unique set of skills. Commitment to the cause is essential, but the nonprofit world features distinct nuances you can only learn from years of experience. With a global PEO on your side, the recruitment, retention, and development of your workforce are simplified and streamlined. An experienced PEO will find the right people for your team, ensure a smooth onboarding process, and help keep them professionally engaged.

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Improved Ratings

By cutting costs and improving efficiency, PEOs can help improve Charity Navigator, United Way, and Better Business Bureau ratings (which are primarily based on assessments of nonprofit management). A better score can make a nonprofit more appealing to sponsors, donors, community partners, members, and volunteers.

Enhanced services

Additionally, many PEOs offer nonprofit organizations additional services like productivity tracking, recruiting, risk management, and HR consulting.

 

Don’t let HR challenges get in the way of making the world a better place. Enlist the help of a qualified Global PEO so that you can focus on what you do best—leading your nonprofit to new heights.

 

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