To run an effective non-profit requires a strong commitment to the mission, effective leadership, and the ability to manage resources efficiently. This includes one particularly important resource – time. If you want to manage time effectively for your non-profit, you’ve come to the right place. In this article we’re going to layout seven time tracking best practices for non-profits that can enhance operational efficiency and ensure that every minute spent aligns with your mission. No time to waste, let’s get started!
This article covers…
Overview: Why time tracking is important for your US Nonprofit Organization
- Tip 1: Get Started with Time Tracking
- Tip 2: Communicate the Importance of Time Tracking
- Tip 3: Manage Volunteers
- Tip 4: Manage Projects
- Tip 5: Choose the Right Software
- Tip 6: Review Human Resources Considerations
- Tip 7: Gain Insights through Data Analytics
Final Thoughts: Revolutionize Time Tracking for your US Nonprofit Organization
Overview: Why time tracking is important for your US Nonprofit Organization
“Employment of fundraisers is projected to grow 11 percent from 2021 to 2031, much faster than the average for all occupations.” – U.S. Bureau of Labor Statistics
This means that fundraisers will face more competition and pressure to raise funds for their organizations in the future. To stand out from the crowd and secure the resources they need, fundraisers will have to demonstrate their value and impact to their donors and grantors. That’s why time tracking is a key skill for US nonprofit management.
Time tracking helps you keep track of how much time you and your staff spend on different activities, such as program delivery, fundraising, and administration. This helps you report on your grant outcomes, measure your fundraising success, and show your donors the impact of their donations.
Time tracking also helps you understand how your organization works, where you can improve your efficiency, and how you can allocate your resources better. This helps you make smart choices when you apply for grants and funding from federal, state, or local agencies, foundations, or corporations, and when you plan your budget and strategy.
Tip 1: Identify Your Time Tracking Needs
The first step to track your time effectively is to align it with your US nonprofit’s mission. Your mission is your organization’s purpose and vision for the US and the world. It defines what you want to achieve and how you want to achieve it. You need to set clear goals and objectives for your organization that reflect your mission and guide your actions.
To support your goals and objectives, you need to design a time tracking system that fits your organization’s needs and culture. This means you choose the activities you track, the methods you use, and the data you collect. You also decide how you want to use the data to measure your performance and impact. By doing this, time tracking becomes a core part of your organizational culture, not an extra burden. It also helps you gather and evaluate reliable data that shows your organization’s results and impact.
Tip 2: Communicate the Importance of Time Tracking
Tracking employee time is important for US nonprofits. It helps measure staff performance, follow labor laws, and allocate wages to programs. Time tracking software can make the process easier, faster, and smarter.
To get employees to track time, nonprofits need to communicate, train, and motivate them. Employees need to know why time tracking is good for them and the organization. They need to learn how to use the software and get help when needed. They also need to feel appreciated and rewarded for tracking their time well.
By following these best practices, nonprofits can get employees to track time accurately and consistently. This can improve productivity, compliance, and efficiency for the organization.
Tip 3: Manage Volunteers
The Current Estimated National Value of Each Volunteer Hour Is: $31.80 from the 2023 Value of Volunteer Time Report, Independent Sector.
US nonprofit organizations rely on volunteers for various tasks and projects, such as fundraising, events, and outreach. By using time tracking, nonprofits can manage and track volunteer hours effectively. This is important because nonprofits can…
- Generate reports on their volunteer activities to donors, grantors, and the IRS accurately and transparently.
- Recognize and appreciate their volunteers for their hard work and dedication in meaningful ways.
- Measure and improve their volunteer engagement and impact on the organization’s mission.
Some of the best practices in time tracking for managing volunteers are: encouraging volunteers to track hours and explaining the benefits of doing so, using a digital dashboard to store hours and simplify the tracking process, integrating your nonprofit system to collect and analyze volunteer data, making decisions backed by data to optimize your volunteer program, and making it easy for volunteers to time track with apps that have mobile versions with facial recognition and geofencing features. These features can help verify the identity and location of the volunteers when they clock in and out, as well as prevent time theft and fraud.
Tip 4: Manage Programs and Budgets
For US nonprofits, managing programs and budgets effectively is crucial for achieving their goals and mission. Time tracking can help nonprofits with this challenge, by providing them with useful data on how they use their time and money. Time tracking can help nonprofits answer questions such as:
- How long does it take to complete a program or project?
- How much does it cost to run a program or project?
- How much time and money are spent on different activities, such as program delivery, fundraising, and administration?
- How can resources be allocated more efficiently and strategically?
By using time tracking software, nonprofits can collect and analyze time tracking data easily and accurately. They can generate reports that show the time and cost of each program or project, and compare them with the expected outcomes and budget. They can also use the data to plan and estimate future programs or projects, and write grant proposals that demonstrate their impact and need for funding. By using time tracking for program and budget management, nonprofits can improve their performance and sustainability.
Tip 5: Choose the Right Software
For US nonprofits, time tracking software is not a luxury, but a necessity. Time tracking software can help nonprofits with many aspects of their operations, such as payroll, reporting, compliance, and efficiency. However, not all time tracking apps are created equal. US nonprofits need to choose software that meets their specific needs and challenges. Some of the factors to consider when choosing time tracking software are:
- Compliance: The software should comply with the Federal and US State Labor Laws that apply to nonprofits, such as the Fair Labor Standards Act (FLSA), the Internal Revenue Code (IRC), and the Uniform Guidance (UG). The software should also help nonprofits track and report on their grant outcomes and functional expenses, as required by the IRS and other funders.
- Integration: The software should integrate with the payroll and accounting systems that nonprofits use. This can help nonprofits automate and simplify their payroll and accounting processes, and avoid errors and duplication of data.
- Reporting: The software should provide comprehensive and customizable reports that show how time and money are spent on different programs, projects, and activities. The reports should also be easy to export and share with donors, grantors, board members, and other stakeholders.
- Ease of use: The software should be user-friendly and intuitive for both employees and managers. It should also be accessible from any device and location, and provide reliable customer support and training.
- Cost: The software should be affordable and fit within the nonprofit’s budget. Some software may offer discounts or free plans for nonprofits.
By choosing the right nonprofit time tracking software, US nonprofits can streamline their administrative processes, reduce their overhead costs, and maximize the time spent on their mission.
Tip 6: Review Human Resources Considerations
Nonprofits must comply with various federal and state labor laws, such as the Fair Labor Standards Act (FLSA), which sets the minimum wage, overtime pay, recordkeeping, and youth employment standards. Precise and current record-keeping is crucial for passing audits and demonstrating how funds are allocated to specific programs, fundraising activities, and administrative functions. Time tracking software can help nonprofits integrate their payroll and other systems, streamline administrative processes, reduce overhead costs, and ensure compliance with regulations.
Compliance with federal and state labor laws is of utmost importance for nonprofits. Precise and current record-keeping is crucial for passing audits and demonstrating how funds are allocated to specific programs, fundraising activities, and administrative functions. Integration of time tracking software with payroll and other systems can streamline administrative processes, reduce overhead costs, and ensure compliance with regulations.
Tip 7: Gain Insights through Data Analytics
Time tracking is not only useful for tracking time, but also for generating data that can help US nonprofits improve their operations. Time tracking data can reveal a lot of information about how nonprofits use their time and resources, and what impact they have on their mission and goals. By using data analytics tools, nonprofits can analyze and visualize their time tracking data, and discover insights that can help them with various aspects of their work. Some of the ways that data analytics from time tracking can help US nonprofits are:
- Improving staff performance: Data analytics can help nonprofits measure and evaluate staff performance, by showing how much time they spend on different tasks and projects, and how well they meet their objectives and deadlines. Data analytics can also help nonprofits identify staff training needs, skills gaps, and areas for feedback and coaching.
- Optimizing event planning: Data analytics can help nonprofits plan and organize successful events, by showing how much time and money they spend on event preparation, execution, and follow-up. Data analytics can also help nonprofits track event attendance patterns, such as who attends, when, where, and why, and use this information to improve their outreach and engagement strategies.
- Enhancing volunteer management: Data analytics can help nonprofits manage and appreciate their volunteers, by showing how much time they contribute to different programs and activities, and what impact they have on the organization’s mission. Data analytics can also help nonprofits monitor volunteer engagement, satisfaction, and retention, and use this information to improve their volunteer recruitment and recognition practices.
By using data analytics from time tracking, US nonprofits can make data-driven decisions, address issues proactively, and enhance overall operational efficiency.
Final Thoughts: Revolutionize Time Tracking for your US Nonprofit Organization
I have found time tracking to be a powerful tool that can help organizations achieve their goals and mission. By tracking their time, US nonprofit organizations can gain valuable insights into how they use their time and resources, and how they can improve their performance, compliance, and efficiency.
Time tracking can help nonprofits measure and improve their productivity, quality, and effectiveness, by tracking the time spent on different activities, projects, and programs. Time tracking can also help nonprofits comply with labor laws, grant requirements, and donor expectations, by tracking the time spent by their staff, volunteers, and contractors. Finally, time tracking can help nonprofits demonstrate their impact and value, by showing how they use their funds and donations to make a difference in their communities. By using time tracking software, following labor laws, and using data analytics, nonprofits can take their time tracking practices to the next level and transform their organization for the better.
