May 11, 2016
Posted Under: Advocacy
Nonprofits in Alaska and across the country will soon be dealing with changes to federal rules governing employment and contracting practices that have the potential to affect their costs and operations – especially those with grants or contracts to provide services on behalf of any government.
This information from the National Council of Nonprofits gives you the details about two federal regulatory issues and asks for your perspectives through a confidential survey that will develop data to support better policies and solutions.
Review the information, then click on the Survey Link to participate.
WHAT’S IN PLAY?
- Overtime: As we highlighted in our May newsletter, the S. Department of Labor is expected to announce soon new overtime regulations that will require most employers, including nonprofits, to pay overtime to all employees earning less than approximately $50,000. (The current threshold is $23,660.) The new salary level threshold will apply regardless of whether individual employees are considered salaried (exempt) or hourly (nonexempt). Nonprofits with government grants and contracts will be in the position of having to comply with significant new federal requirements imposing new costs that were not known when those grants and contracts were signed. Unlike businesses that can raise prices, or governments that can raise taxes or curtail public services, nonprofits with government grants and contracts may find themselves contractually bound to maintain services at increased costs that may not be expressly covered by existing written agreements.
- Overhead: Starting in 2017, grant rules from the federal Office of Management and Budget impose new procurement procedures that dictate the steps nonprofits and other entities must take when using grant funds that originated from the federal government (even if passed through an agreement with another entity) to purchase goods and services (e.g., buying printers or laptops). Specifically, the OMB Uniform Guidance requires that nonprofits and others will be required to obtain and document multiple price quotes before making aggregate purchases over $3,500 when using federal funds from government grants or contracts. The good news is that OMB is open to considering whether the $3,500 threshold for aggregate purchase from individual suppliers should be adjusted and has requested that nonprofits provide information about current nonprofit policies and practices.
WHY TAKE THE SURVEY?
In order to improve policies and/or develop solutions to avoid potential adverse impacts, we need good data. Greater participation from a broad cross-section of the nonprofit sector will produce better policies and solutions.
WHICH ORGANIZATIONS?
Nonprofits with grants and contracts with governments at any level should take this survey.
WHO SHOULD FILL OUT THE SURVEY?
Individuals with knowledge of your organization’s finances will best be able to complete the survey.
HOW WILL RESPONSES BE USED?
Survey responses from individual nonprofits will be kept confidential. The responses will only be reported in the aggregate, or used anonymously to illustrate unique challenges that organizations with government grants and contracts may experience because of these policies.
WHEN ARE RESPONSES DUE?
By Monday, May 23, 2016. The sooner we receive responses, the sooner solutions can start to take shape. So please complete the survey as soon as possible.
Click here to take the survey.
