Action Alert: National Survey Regarding Overtime and Overhead
From our partners at the National Council on Nonprofits:
Inviting Nonprofits with Government Grants and Contracts to Participate in a National Survey
Nonprofits in our state and across the country will soon be dealing with changes to federal rules governing employment and contracting practices that have the potential to affect the costs and operations of nonprofit organizations – especially those with government grants or contracts to provide services on behalf of governments at all levels.
The U.S. Department of Labor is expected soon to put in place 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.)
Starting in 2017, government grants rules from the Office of Management and Budget impose new procurement procedures that dictate the steps that nonprofits (and other entities) must take when using grant funds that originally came from the federal government (even if passed through other entities) to purchase goods and services (e.g., buying printers or laptops). Both sets of rules are expected to increase costs of many nonprofits with few options for raising additional revenues to cover them.
The question has been raised as to whether the problems are even more acute for nonprofits that provide services pursuant to government grants and contracts. Maine Association of Nonprofits and the National Council of Nonprofits invite nonprofits with government contracts and grants at any level (local, state, tribal, or federal) to participate in a confidential National Survey designed to develop data that supports better policies and solutions to potential adverse consequences of the pending reforms.