Should You Outsource Your Non-profit Payroll?
If you are running or working in a non-profit organization you know that there are too many organizational and logistical questions all fall under the attention of one person and that is not limited to payroll services. Considering how much fundraising and organizing one person has to do it becomes imperative that the payroll is outsourced to those specialised in the field. However, it is very common that non-profit do not have the budget to outsource tasks that can be done in-house. Here are some of the pros and cons for doing that.
Tax and non-profit
The work of non-profit organizations may differ from that of regular companies but when it comes to taxes they are expected to do things the same way. They should deduct money for health, unemployment and other benefits, as well as deduct taxes from all their employees. Generally, there is nothing particular about payrolls for non-profit except that people working for non-profit may not always be primarily interested in this type of work and hence training someone on a payroll software may not be the most successful plan.
This is a question a non-profit should keep in mind whenever they are considering payroll outsourcing. As some non-profit organizations become charitable it means that they can give tax deductable receipts to people who donate to them. This needs to be handled properly by accounting and it is an important thing to keep in mind. Usually, whoever is hired to work on the payroll should be working on this part as well since they are related and it helps cutting costs. Perhaps, for many non-profit, it is a good idea to outsource if they have the means because then they can ensure that all their financial worries are taken care of all at once. More details!
Non-profit should focus on missions
For many non-profit organisations the goal of course is accomplishing a certain mission or working on a certain campaign. They will use all the resources they have to direct the effort on those goals. Hence, there does not to be manpower retargeted to be working on payroll services. This makes outsourcing a much easier, and time saving option that can really help keep the focus on the non-profit organisation where it should be.
Let the business done by those who know how
As discussed non-profit may have too many things on their hands, all the way from refining and redefining their goals, to planning their campaigns and finding funding, and hiring and managing volunteers. That is a lot of work for organization with a limited human resources and it is better that this is outsourced to a service that is more prepared to do so.
Whatever it is an organisation plans to do is important to be focused on the key goals. However, as it is the case with any company or organization be it non-profit or not planning the payroll and keeping the logistics is essential for its survival which is why non-profit should consider payroll outsourcing. For more information visit: https://www.investopedia.com/terms/n/nonfarmpayroll.asp