New Overtime Rules and Nonprofit Organizations

/in , /by

Yesterday, the Department of Labor and the President announced the publication of a new overtime rules with the stated goal of updating outdated regulations in an effort to ensure that employees, particularly those in the middle class, are sufficiently compensated for hours worked.  See the President’s fact sheet or information page from the Department of Labor (https://www.dol.gov/featured/overtime).  These new rules changed the minimum salary for employees to be considered exempt from overtime rules at organizations covered by the Fair Labor Standards Act (“FLSA”). How will this affect nonprofit organizations?  The US Department of Labor’s May 18, 2016 publication, entitled “Guidance for Non-Profit Organization on Paying Overtime under the Fair Labor Standards Act” gives a fairly easy to read summary of the changes, how it may affect nonprofit organizations, and options to comply for those organizations affected.  The following is a quick summary based on my reading of the publication but be sure to read the attached document to ensure compliance with these rules for your own nonprofit organization.

Beginning December 1, 2016, the minimum salary for exempt employees will be tied to the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census region or $913 per week.  In addition, salary and compensation levels will be adjusted every three years to maintain this minimum level.  Currently, the minimum weekly pay for exempt workers is $455.  There are several options for complying with the new rules.  Different options and examples, specifically targeted to nonprofits, are given in the DOL’s publication.   Importantly though, currently exempt employees making less than the new minimum salary do not have to be switched to hourly pay.

Nonprofits are not specifically exempt from these new rules.  Coverage under FLSA can be at the individual worker level or organizational level.  Generally, for an organization to be covered under FLSA, the organization must have annual revenue of at least $500,000 from ordinary commercial activities.  Donations, contributions, membership fees, and other typical nonprofit specific income would not normally be considered commercial activity.  Individual employee coverage largely depends on the workers involvement in interstate commerce.

Refer to the Department of Labor website and the following publications from the Department of Labor for more information:

Overtime Final Rule and the Non-Profit Sector

Guidance for Non-Profit Organizations on Paying Overtime under the Fair Labor Standards Act

Comparison Chart

Mid-Year Update on IMPACT Harrisonburg

/in , /by

IMPACT Harrisonburg continues to see growing involvement and interest from the Harrisonburg and Rockingham community.

In December 2015, the group held a well-attended event with TCF donors as speakers. The event was titled “Inside The Philanthropist Mind”. The intent of the evening was to hear from some of our community’s philanthropists to learn why they give and to hear what their 20s, 30s, and 40s, were like.

We thought you might be interested in hearing the “impact” made on 2015 recipient On The Road Collaborative.

The impact of IMPACT Harrisonburg’s first grant award continues to reverberate throughout the hallways of Skyline Middle School during On the Road Collaborative’s inaugural program year. You will find 90 middle school youth actively engaged in their 10-week hands-on Career Enrichment Projects, learning a wide range of careers from their volunteer professionals (known as Community Teachers), in everything from coding to broadcasting to arts. 

After a tremendously successful Learning Showcase season in December, which included a Mock Trial in the downtown Harrisonburg Circuit Courthouse, original photography exhibit at Spitzer Art Center, Iron Chef cooking challenge, and a variety of youth ‘teach-back’ presentations at our main event at Skyline Middle School, we are already underway with the new semester and a new line-up of Career Enrichment Projects, including architecture, fashion, theatre, personal finance, leadership and fitness, just to name a few. 

Not only has IMPACT enabled us to successfully launch our middle school program this year and make a tremendous difference in the lives of local youth, but you have helped lay the foundation for us to expand our services next year to more kids and more days at Skyline Middle!

~Brent Holsinger

IMPACT has great momentum and wants to grow the support of people in their 20s, 30s, and 40s to make an “impact” on Harrisonburg and Rockingham County.

Here’s the web link to signup.

https://squareup.com/market/impact-harrisonburg-

 

Here’s the address where you can send a check.

The Community Foundation of Harrisonburg/Rockingham County

for IMPACT

P.O. Box 1068

Harrisonburg, VA 22803

Community Foundation office closing early on Dec. 31

/in , , , , , /by

The Community Foundation of Harrisonburg & Rockingham County will be closing its office early on Thursday, December 31, 2015. Our office hours for the remainder of 2015 are as follows:

Tuesday, December 29                 9:00AM – 5:00PM

Wednesday, December 30           9:00AM – 5:00PM

Thursday, December 31               9:00AM – Noon

Friday, January 1                          Closed

 

We appreciate your investment in our community and are most grateful for your support of our work during the past year. We look forward to working with you in 2016 as we ‘Dream. Share. Build. OUR COMMUNITY.’

President Signs IRA Qualified Charitable Distribution into Law

/in , , /by

On December 18, Congress passed the PATH Act, which renews and makes permanent the IRA Qualified Charitable Distribution provision of 2006.  This provision makes it easier for Americans to give to causes they care about and will help local charities strengthen their communities by allowing individuals to roll over up to $100,000 annually from an Individual Retirement Account (IRA) to charity without being federally taxed.

Click here to see the announcement from the Council on Foundations.

Millions of Americans continue to save pre-tax dollars in their IRAs. The law allows taxpayers 70 ½ and older to share their wealth by giving retirement savings directly to charity—and bypassing income tax.  (source: http://www.ici.org/research/stats/retirement/)

Annually, holders of traditional IRAs who are at least 70½ years old can make direct charitable transfers up to $100,000. Individuals may exclude the amount distributed directly to an eligible charity from their gross income. The Community Foundation of Harrisonburg & Rockingham County can help donors execute the transfers and choose from several charitable fund options for their gift.  Please note that Donor Advised Funds do not qualify for tax-free IRA transfers.

Some charitable fund options at The Community Foundation of Harrisonburg & Rockingham County that do qualify include:

Field of Interest Fund—Connecting personal values to high-impact opportunities.

IRA transfers to Field of Interest Funds allow donors to target gifts to causes important to them: arts, education, neighborhood revitalization, youth welfare and more.  The Community Foundation of Harrisonburg & Rockingham County awards grants to community organizations and programs addressing the donor’s specific interest area.

Designated Fund—Helping local organizations sustain and grow.

IRA transfers to Designated Funds allow donors to support the good work of a specific nonprofit organization—a senior center, museum or any qualifying nonprofit charitable organization.

The Community Endowment Fund – Meeting ever-changing community needs

IRA transfers to the Community Endowment for Harrisonburg & Rockingham County address a broad range of current and future needs. The Community Foundation asks local nonprofit to submit a description of their needs each year as part of the Community Needs Listing process.  Grants from the Community Endowment are awarded annually to nonprofits on this listing to help meet the needs of our community.

Call The Community Foundation of Harrisionburg & Rockingham today at (540) 432-3863 to find out more about the IRA Qualified Charitable Distribution and how it can benefit our community!