Elsewhere online
August 25, 2016

Mission Focus Can Put Pay Squeeze on Nonprofit Employees

In light of new federal regulations expanding eligibility for overtime pay — and many charities’ opposition to the changes — The Atlantic magazine looks at the forces putting pressure on nonprofit workers to put in longer hours for less money.

Budget issues play a significant role, particularly at social-service organizations that rely on government contracts and struggle with twin demands to expand services and reduce overhead costs, reporter Jonathan Timm notes. But he also examines a nonprofit culture that “can put the needs of staff behind mission-driven ambitions.”

That culture favors cutting jobs and salaries rather than shrinking programs and services, even though a better deal for low-income workers jibes with nonprofit values, Mr. Timm writes. The argument that doubling the salary threshold for overtime eligibility will force cuts in services is at the heart of opposition to the new rules among groups like Habitat for Humanity and YMCA of the USA.

Read a Chronicle of Philanthropy opinion column on charities’ response to the new overtime rules and a webinar with Department of Labor officials on how the changes will affect nonprofits.