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Frequently Asked Questions
Administration
- What makes an employee exempt vs. nonexempt?
- What is a volunteer hour worth?
- What are the public disclosure laws for nonprofits?
- Do I have to pay an employee vacation pay if their employment is terminated?
- How long should I keep my organization's financial records?
- New! Capital Projects and Campaigns: How do we get from dream to reality?
Board
Advocacy, Marketing and Communications
- I want to teach public officials about my nonprofit. Where do I begin, and what do I need to do?
- How can I get effective media coverage for my nonprofit?
- Why should I support Referenda C&D? How can I get started?
- Can my nonprofit work on Get Out the Vote projects...among our consistuents and in our community? What's involved?
Safety Seminars
- Do I have to complete a training?
- What happens if I don't?
- How much of a discount do I currently get? And what additional discount will I get after completing the safety seminar?
- I live outside of Metro Denver. What options do I have for completing my safety traning?
- What's the penalty for not completing the safety training?
- We only have one full-time employee. Do we really need to complete the training?
What makes an employee exempt vs. nonexempt?
On August 23, 2004, President George Bush approved legislation to change the way overtime exemptions work.
In order to be classified as exempt, a professional, executive, administrative, computer or outside sales position must be paid at least $455 a week. Any worker making less than this is not exempt. Any employee making over $100,000 a year, as long as there is a base pay of $455 or more a week, can be classified as exempt.
There have been a few other changes in which jobs are exempt. It is best to visit www.dol.gov to find more information. You can also contact an attorney or the Wage and Hour Division helpline, 1-866-4US-WAGE.
For more information:
- Department of Labor's FairPay Fact Sheet
- eLaws Advisor:
"The Department of Labor (DOL) developed the elaws Advisors to help employees and employers understand their rights and responsibilities under numerous Federal employment laws. Each Advisor includes links to more detailed information that may be useful to the user, such as links to regulatory text, publications and organizations." - FairPay Overtime Rules
Includes a free online video seminar.
What is a volunteer hour worth?
Volunteer hours for 2003 were worth $17.19. According to the Independent Sector website ( www.independentsector.org), "the value of volunteer time is based on the average hourly earnings of all production and non-supervisory workers on private non-farm payrolls (as determined by the Bureau of Labor Statistics). Independent Sector takes this figure and increases it by 12 percent to estimate for fringe benefits."
As this is an average of all the states, the numbers vary by location. For example, the national estimate of $17.19 means that there was a large increase in 2003, from $16.74 in 2002. However, Colorado's average in 2002 was $17.41.
What are the public disclosure laws for nonprofits?
According to the IRS, all non-profit organizations, regardless of 501 status, have the same basic public disclosure laws, excluding private foundations. The current law states that any tax-exempt organization, including all 501 (a), (c), and (d) organizations, must make their records public. These records include all annual information returns (forms 990, 990-EX, 990-BL, and Form 1065) for the past three years as well as the original application for tax-exempt status. The original application for tax-exemption will contain the bylaws for the organization. An organization is not required to disclose the parts of the return that identify contributors.
Organizations must be ready to provide these documents upon request. If the request is made in person, then the copies must be provided free of a charge, beyond the photocopying costs, immediately. If the request is made by writing, then the documents must be provided within 30 days, charging no more than a reasonable charge for copies and postage. The IRS defines a reasonable fee for photo-copies to be, at most, "$1.00 for the first page and $.15 for each subsequent page," as well as the postage costs.
If an organization has made their documents widely available or the Secretary of the Treasury decides that the organization is being made the victim of a harassment campaign, then these requests may qualify to be ignored.
Do I have to pay an employee vacation pay if their employment is terminated?
The State of Colorado has no vacation or sick time requirements in terms of how much, if any, must be provided to employees, though it does have strict guidelines on how time off works once earned. In Colorado, vacation pay is considered a form of wages and may be used as soon as it is earned. Further, if employment is terminated, according to The Colorado Supreme Court, any earned and unused vacation time must be paid to the employee.
How long should I keep my organization's financial records?
The Internal Revenue Service can audit an organization 3 years after a filing if it suspects good faith errors and up to 6 years after the filing if it suspects an underestimation of gross income by 25% or more. Thus, it is advisable to keep your financial records, even after the organization dissolves, for at least 7 years. If the organization has dissolved, the IRS can still audit and the Board of Directors is still liable for the organization.
If you have more concerns or questions about record retention, an accountant can provide you with specific information and advice.
Capital Projects & Campaigns: How do we get from dream to reality?
Facility Expansion & Renovation: Planning for Capital Projects & Campaigns
An initiative of the Gates Family Foundation, Denver, Colorado
Available on the website of the Community Resource Center (www.crcamerica.org)
Non-profits who are considering facility expansion often ask, "How do we get from dream to reality?" This guide seeks to help them do just that, beginning with an assessment of the organization's readiness and ending with construction and long-term maintenance. The next page, a roadmap of the process, provides an overview of the guide's direction and scope.
The Gates Family Foundation, which focuses on grants for capital projects in Colorado, developed the guide to encourage small and large non-profits to plan earlier and better and thus avoid costly and all too common mistakes. Important to the design and final product was the skillful collaboration and co-authorship of Rick Tallman of the Tallman Group (rick@tallmangroup.com), a Denver-based consulting firm that specializes in financial planning and capital campaigns.
The guide can be downloaded in both PowerPoint and PDF formats. We have found the PowerPoint version to be the best way to get familiar with the guide or to communicate the approach with others. If you plan on printing the PowerPoint document make sure to print a black and white version (not grayscale). The PDF version makes an excellent desk reference. While the core guide is now complete, it is considered a living document. Over time, additional information will be added, mostly in the form of examples for reference, such as business plans, advice on selecting architects, strategic plans, etc. Suggestions on improvement are always welcome!
Tom Kaesemeyer
Executive Director
Gates Family Foundation
tkaesemeyer@gatesfamilyfoundation.org
Download the Powerpoint presentation
What are my board's responsibilities?
While the responsibilities of the board of directors can vary, there are a few that are standard for all nonprofit boards. The basic responsibilities are to:
- Determine the organization's mission and purpose;
- Select, supervise and assist the chief executive;
- Provide financial oversight;
- Provide adequate resources;
- Ensure legal and ethical integrity;
- Ensure effective planning;
- Provide public outreach; and,
- Recruit new board members.
Basically, the board makes sure the organization runs without hitches and supervises the chief executive to make sure the executive is performing well.
For more information:
- BoardSource
BoardSource is dedicated to increasing the effectiveness of nonprofit organizations by strengthening their boards of directors.
I want to teach public officials about my nonprofit. Where do I begin, and what do I need to do?
The Colorado Nonprofit Association has created a lobbying toolkit with information on how to IRS regulations, Colorado Secretary of State requirements, and tips on working with legislators.
Click here to view Speak for Yourself: Nonprofit Advocacy Toolkit in PDF format.
How can I get effective media coverage for my nonprofit?
Working with the media is an integral part of accomplishing an organization's mission by informing the public and influencing public policy. Good publicity can bolster your organization's membership or volunteer efforts.
Getting good media coverage is often seen as a daunting task, but with some preparation and practice it can be a highly rewarding endeavor. A few keys to success are...
Click here to view the Colorado Nonprofit Association's Working with the Media Nonprofit Toolkit in PDF format.
Why should I support Referenda C&D? How can I get started?
The recent economic downturn and state revenue limits have created a number of problems for many of Colorado's 17,000 nonprofits and the people they serve. Colorado has been forced to cut $1 billion in spending over the past three years reducing programs that fund or partner with nonprofits to provide services. The loss of government funding to nonprofits has increased competition for limited foundation, corporate and individual support. Plus, the economic downturn and reduction in government programs have increased the demand for services from Colorado's nonprofit organizations. It is estimated that if nothing is done to rectify the fiscal crisis, over $700 million more will be cut in the next two years.
Visit the Nonprofit Voice Project, a joint project of the Colorado Nonprofit Association and Community Foundations for Colorado's Future.
Click here to view the Colorado Nonprofit Association's Referenda C&D Nonprofit Toolkit in PDF format.
Can my nonprofit work on Get Out the Vote projects...among our constituents and in our community? What's involved?
What is a voter registration drive? Do all participants in a drive need to be trained? What should we do with registration forms we collect?
Find the answers to all your Get Out the Vote questions in the Colorado Nonprofit Association's GOTV Toolkit. This file is in PDF format.
Do I have to complete a training?
Yes - One person from your organization per year must attend a training.
What happens if I don't?
You will lose your discount.
How much of a discount do I currently get? And what additional discount will I get after completing the safety seminar?
Your discount is 4%. There is no additional discount past the 4%.
I live outside of Metro Denver. What options do I have for completing my safety training?
Your best option is to take online training (available to all policy holders). Go to www.pinnacol.com and click on "Online Safety Training" to access the various courses.
What's the penalty for not completing the safety training?
You will lose your 4% discount.
We only have one full-time employee. Do we really need to complete the training?
Yes - Pinnacol wants everyone to be safe.