Wage question Not-for-Profit

Dutch2

I have no experience with not-for-profit organizations; however I have been asked by a local group that run a Maternity home. Are they required to pay the volunteers that work for them? There have a couple that live at the home; the husband also a full-time job outside of the home and the wife stays there with those receiving care. They also have a volunteer that comes in to act as a part-time Admin. Asst. to help keep their books in order. The home has not been going very long and everyone has been giving freely of their time and work and expecting no sort of payment. However, someone, a new board member I believe, as stepped up and is saying they are required to pay these people. Can anyone offer any advice on this matter?
Thank you.

ACU Frank

Dutch -

Here's a link to a discussion on the topic... Just skimming it, it looks like you're probably okay on this.

[URL]http://www.nonprofitrisk.org/library/articles/employment010208.shtml[/URL]


Of course, I have a soft spot for unwed mothers - I helped many get their start. (hahaha - old Steve Martin line, paraphrased)

NaeNae55

I disagree with Frank on this one. The thing that stands out to me is that the couple lives at the home. This is compensation, and makes them paid employees. That doesn't mean they must also receive a cash wage. The duties would determine if they need a cash wage (ie, hourly employees must be paid minimum wage and overtime). However, the value of living there is compensation and is thus taxable wages.

I know every penny counts with a non-profit, but they should really see a lawyer about this. Perhaps they can get one pro-bono.

Paul in Cannon Beach

To clarify, is the board member suggesting that volunteers be paid because that would be a nice thing and attract more volunteers or is he implying that the maternity home is incorrectly treating these workers as volunteers and should begin paying them?

Frank's link is a good one. Its a good summary of the criteria for volunteering.

Our organization uses thousands of hours of volunteers. Our volunteers are a WONDERFUL part of our team. We couldn't pay them for all they do and they wouldn't want to be paid. They volunteer because they want to support what we are doing here and its a rewarding experience for them.

Once you introduce filthy luchre into the relationship, the joy that your volunteers recieve from giving their time is tarnished.

Our volunteers like to joke that us staff are "good because we are paid to be good" and they as volunteers are "good for nothing!"

Dutch2

Thank you all for your responses.
They are muchly appreciated.
Dutch