Not-For-Profit Compensation
Overview:
CRI has extensive experience working with not-for-profit organizations to develop effective compensation programs that are aligned with organizational goals and objectives. When developing a program for not-for-profit organizations, we ensure that it is aligned with applicable IRS regulations.
Specifically, CRI specializes in the design, development, and implementation of compensation and human resource programs in the following areas:
Sectors served:
- Charities
- Educational Institutions
- Foundations
- Social Services
- Religious Organizations
Case Studies:
Case Study #1: Competitive Market Study
Issues:
- Job descriptions were out-of-date and not accurate
- Salaries were not in line with competitive market
- Employee morale was low
Solutions:
- Utilized Position Description Questionnaire to determine appropriate duties and responsibilities of positions
- Market priced all positions utilizing comparable published surveys
- Conducted analysis of individual salaries compared to competitive market
- Increased salaries where necessary to reflect competitive market levels
Case Study #2: Executive Compensation Analysis
Issues:
- Board of Directors of a foundation needed to determine total compensation package for the CEO in light of IRS regulations
- An examination of reasonable compensation for the CEO needed to be conducted
- Desired a mechanism to retain the CEO
Solutions:
- Interviewed members of the Board of Directors in order to confirm their position on compensation
- Interviewed the CEO to fully understand duties and responsibilities
- Conducted a market analysis to determine reasonableness of compensation utilizing published survey and peer Form 990 data
- Provided recommendations for appropriate compensation levels for base salary and incentives to the Board of Directors
- Developed an Annual Incentive Plan and a Supplemental Executive Retirement Plan (SERP)
Case Study #3: Performance Management Program
Issues:
- Performance management process was very cumbersome and subjective
- Evaluation forms did not differentiate performance levels
- Reviews were not performed on a consistent, systematic basis
- Infrequent communications regarding employee performance
- Not enough management training
Solutions:
- Developed new performance management program that was aligned with best practices
- Developed simplified forms specific for management and staff
- Decreased number of performance ratings in order to provide for differentiation
- Conducted performance evaluations twice a year
- Conducted management training on proper use of forms
- Communicated with employees regarding the new program
