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Nonprofit HR Policies

nonprofit hr policies

Nonprofit HR policies are an integral part of running your organization ethically and assuring donors that donations are handled responsibly. Many functions associated with nonprofit HR require discretion – therefore having a trained HR department dedicated to handling sensitive matters would be ideal.


Nonprofits rely on employee recruitment in order to fulfill their missions. Employing effective applications and evaluation systems to find staff that fits with their mission can help nonprofits attract talent; while offering intrinsic rewards such as making an impactful difference in people’s lives may prove more fulfilling than higher salaries.

HR professionals must also monitor labor laws and regulations in order to comply with them, regularly reviewing employee handbooks with expectations on topics like payroll, benefits, technology usage and vacation policies.

Successful nonprofits need an effective onboarding process in place, to help new hires and volunteers understand the mission and culture of the organization and reduce turnover while increasing productivity.


HR policies play a pivotal role in creating and upholding an ideal working environment for employees and volunteers, in addition to supporting legal compliance and mitigating risk.

Nonprofits present unique challenges when it comes to recruiting and maintaining an effective workforce. Nonprofits must comply with minimum wage laws while still offering competitive pay levels compared to other industries without jeopardizing their tax-exempt status.

Onboarding new hires is an integral component of successful employment relationships. HR professionals can ensure a smooth experience for new employees by creating an employee manual outlining expectations, company culture and values as well as handbooks for nonprofit organizations that outline employment policies for all staff. HR can then follow up with any questions or issues.


Training and development is an integral component of any workplace, but nonprofit environments place an additional burden on them due to limited budgets and staff numbers. Devising an effective training and development program that meets labor laws compliance can be difficult when resources are stretched thin.

Nonprofit organizations typically rely on grant funding that may only last for a specific time period without assurances of renewal, making it essential to put HR policies in place that enable effective staff management.

Social justice missions are integral components of society, as they support the principle that all individuals have fundamental rights regardless of identity. Nonprofit HR stands as an advocate and partner with these causes to bring us one step closer towards creating an environment in which everyone thrives.


Nonprofit employees give generously of themselves in service of the community, but they also need money. The best way to keep your nonprofit staff happy and productive is to implement effective policies that ensure fair compensation is offered.

Common belief holds that charitable organizations cannot or should not employ paid staff, yet to keep their tax-exempt status, nonprofits must abide by minimum wage laws and ensure compensation is “reasonable but not excessive” for executive positions and other high-paying positions.

To create the optimal salary and benefits balance for your nonprofit organization, research what other nonprofits are providing their employees and gauge how they respond. Once that research has been completed, formulate a compensation and benefits strategy which excites younger job seekers; this will increase retention and engagement rates and take you one step closer towards meeting your mission.


Benefits and compensation are integral parts of HR policies in any organization, particularly nonprofits that often operate on tighter budgets than their for-profit counterparts. They must therefore balance attracting talent with cost efficiency when devising benefits plans.

Many nonprofit HR policies involve sensitive information and require high degrees of discretion, making it crucial to have an in-house specialist who understands these complexities of the job and can ensure supervisors adhere to clear hiring guidelines without engaging in nepotism.

Your employees deserve to feel supported and valued, which in turn may increase productivity and decrease turnover. Offering creative benefits like flexible work arrangements, wellness programs, volunteering time off and Health Savings Accounts may be cost-effective solutions to attract and retain top talent.

Performance Reviews

Effective HR policies for nonprofit organizations help mitigate risks and foster an efficient working environment for both their employees and volunteers. In order to meet this objective, nonprofits must create processes that reflect organizational values while encouraging open dialogue among all parties involved.

To encourage an environment of honesty within an organization, its policies should clearly outline what constitutes appropriate public communication as well as employee feedback collection methods and any consequences applicable for inappropriate behavior.

Conflict Resolution Process. Nonprofits should establish an efficient conflict resolution procedure that addresses all scenarios which might lead to conflicts of interest between donors and other stakeholders, and themselves.

Conflict Resolution

Conflict resolution is the practice of employees and managers working collaboratively to find peaceful resolutions to disagreements between individuals. Typically, this process includes meeting with all involved parties to identify concerns and generate potential solutions to the conflict.

At meetings, it’s essential that both parties involved actively listen and give equal weight to all opinions presented, in order to avoid feelings of marginalization or dismissal from either party. Furthermore, encouraging participants to explore a wide variety of solutions even those likely not be successful can also be very beneficial.

Nonprofits should take proactive steps beyond formalizing a conflict resolution process to manage employee complaints and provide supervisors with guidelines on how to respond when employee concerns are voiced. This can reduce HR staff burden while encouraging an open culture within the organization.

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