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Could Human Capital Management Companies Be the Hero Non-Profits Need?

Posted by Kit Dickinson on Jan 30, 2015 9:45:08 AM
Kit Dickinson
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The irony of most non-profit organizations is that they often need an agency to lend them a helping hand. Now human capital management (HCM) companies have a unique opportunity to come to their aid.

The Challenge of Managing and Reporting Labor to Grants

With increasing emphasis on compliance and reduced budgets, non-profit organizations often outsource administrative functions so they can focus on their mission. This creates new challenges that the organizations must find an answer for. Here are some of the common difficulties facing non-profits:

  • Grant/Fund Accounting. Non-profit organizations need to ensure that their employees’ hours and earnings are accurately captured and applied to the right funding sources. This includes both hourly and salaried employees.
  • Reporting. Non-profits must provide their funding sources with reliable and timely justification on how their grant is being used. Many non-profits are also required to provide Time and Effort Reports to certain government agencies, detailing how actual employee time and earnings were spent on a grant or fund during each pay period.
  • Soliciting New Grants and Funds. Attracting funding is critical to a non-profit’s health. Organizations with systematic controls and automated systems for tracking time, grants and reporting are more appealing candidates for funding.

How Bad Is the Grant Reporting Problem?

Often organizations avoid dealing honestly with a problem they don’t know how to solve. You can help a non-profit to see the reality of their situation by asking these challenging questions.

  1. How do you manage your timekeeping and allocation of grants/funds for your salaried and hourly employees? Many non-profits still rely on spreadsheets or manual time cards, which are susceptible to costly errors and time consuming to manage.
  2. How accurate are your time-and-effort reports to your funding sources or government agencies? Non-profits that rely on spreadsheets or manual processes often report “estimates” of time spent on grants. This data can be difficult to justify in case of audit.
  3. How much time do your personnel spend on payroll tasks each pay period? Retaining talent at a non-profit is another challenge. It’s very time-consuming and demotivating for staff to spend hours on manual processes.

IDI Is Your Ace in the Hole

Most HCM solutions can meet the time collection and back end reporting needs of a non-profit.  But they typically don’t manage the complexities of dynamically allocating employee salaries or non-worked time to grants each pay period. This is a critical requirement for non-profits. IDI has the automation solutions that integrate allocated employee time and earnings with payroll, making it easy to track and report salary allocation.

  • Time Bank Salary Allocation. Time Bank automates the allocation to grants and funds that your prospects are doing manually in spreadsheets. Time Bank sends the details from a time-and-attendance system to payroll for project costing and reporting to government and funding sources.
  • Quick Time Entry. If the non-profit doesn’t need a full time-and-attendance system, IDI’s Quick Time Entry is an alternative solution for entering time to projects and grants. Allocated hours and earnings by grants are sent to payroll for processing and reporting.

Partner with Us!

Please contact IDI at 866-TIMEBANK (866-846-3226) or sales@idesign.com for an evaluation of your non-profit account needs. We can work with you to get to pricing and ordering instructions for solutions to improve your client’s operations and impact their bottom line.

Next Steps

Quick Time Entry Video