Giving Compass' Take:
- Here are practical tips for nonprofit leaders to explore 401k options for their employees to improve job quality, safety, and health and well-being.
- How has the pandemic exacerbated financial insecurity for nonprofit employees specifically?
- Learn how to support employment assistance models during a crisis.
What is Giving Compass?
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When the pandemic hit, everyone panicked, and nonprofits weren't immune. Organizations like mine, Teen Cancer America (TCA), relied significantly on large in-person fundraising events and activities to support our work, and when such events were no longer possible, our entire donor-relations model was disrupted. And this happened just as demand for our services increased as a result of the acute isolation young cancer patients were experiencing as a result of the pandemic.
Nearly every nonprofit has struggled with its own pandemic-related challenges, and while many have found creative ways to keep their heads above water, maintaining and supporting a stressed staff — helping them do their jobs and finding new ways to reward them — has been a challenge. With our operating budgets under pressure, monetary rewards could not be guaranteed. How could I make sure they knew that I authentically cared about their well-being?
The pandemic has highlighted the uncertainty of our futures on a very personal level. I thought about employees like Alec, one of our youngest team members and a cancer survivor: How could I ensure that his and other employees' financial futures were safe? I pondered the responsibility I had to support staff in their future planning and concluded that the charity should investigate 401(k) options, something I hadn't previously considered.
Here are a few practical tips for other nonprofits who may be looking at 401(k) plans as an option:
- Communicate with and educate your employees about why retirement matters.
- Be transparent and communicate to donors about the plan and the reasons behind it.
Read the full article about taking care of nonprofit staff by Simon Davies at PhilanTopic.