The lifeblood of a nonprofit organization is the funding that’s supplied from various grants and donations. In the past, nonprofits could focus on their mission and provide periodic reports to their funding sources or government agencies. These reports provided estimates on dollars used against a grant or fund. And that approach was good enough.
But not anymore.
“Good Enough” Reporting Isn’t Good Enough Anymore
Reporting demands have changed. Funding sources are now becoming increasingly vigilant, mandating that nonprofits deliver accurate and timely reports with specifics on whose wages were applied against their grant. And if the nonprofit performs certain government projects, accurate time-and-effort reporting is a legal requirement for maintaining the grant.
If it were as simple as reporting the hours that employees worked on a grant, the process would be relatively straightforward. But since most nonprofits have salaried employees, determining the appropriate percentage of an exempt employee’s salary earnings spent on a given grant each pay period becomes a major undertaking—one that’s often managed in spreadsheets or manual methods.
The payroll administrator at a nonprofit can spend more than a day compiling the information needed to determine the accurate wages charged to a grant before creating the actual reports. Typically they have to account for rounding issues and how to allocate a non-worked day in the pay period.
Make Funding Reports Easy Again
Most time-and-attendance and payroll systems don’t have this industry-specific logic built into their systems, but IDI’s Time Bank integration software can help automate this critical need for non-profits. With a single click at the end of the pay period, Time Bank can perform the precise grant allocations based on where the employees worked each pay period. It can also allocate paid time off (PTO) or other non-worked time to administrative accounts or spread the time among grants.
Find More Time...and Funding
With Time Bank, payroll practitioners are saving time and devoting more attention to their mission. And several nonprofits have actually secured more funding by demonstrating that they have systematic controls to automate grant allocation for more timely, reliable, and accurate funding reports.