Author: Eric Bach
Internationality in recruiting, retaining and rewarding key leaders in nonprofit organization is critical for the long-term success and sustainability. These executives play a vital role in the strategic direction of the organization, as well as its day-to-day operations and interactions with the board.
- Recruiting the right leaders who possess the necessary skills and expertise is the first step towards achieving organizational goals. These leaders should bring a diversity of perspectives, experiences and skills to the table. The right leaders help facilitate the organization's efforts to be more innovative and effective while also solving problems and addressing any issues at hand.
- Retaining key leaders is also essential for all nonprofits to sustain organizational momentum and continuity. Tax-exempt organizations have the advantage of using Split Dollar plans to retain their key leaders. Split dollar plans are a highly retentive retirement benefit that doesn't appear as W-2 compensation on the organization's IRS Form 990. These plans have additional features that make them attractive to both the executive and the organization. These strategies should be a priority for executives who have developed a deep understanding of the organization's mission, values and operations. Their institutional knowledge and constituency familiarity drives the organization to stay on course and continue to progress.
- Rewarding top performers for their contributions is important to keep them motivated and engaged. Rewards can include monetary compensation, benefits and opportunities for professional development and advancement. Recognizing and valuing the contributions of key leaders can help create a culture of excellence and accountability within the organization, which can lead to better results.
Having an effective executive benefits strategy that's aligned with a nonprofit's mission, vision, goals and objectives is crucial in today's economy. Partnering with an Executive Benefits specialist will help to:
- Customize and structure programs geared toward each key employee.
- Positively impact the nonprofit's bottom line.
- Implement tax advantaged solutions for both the organization and key employees when possible.
- Offer enhanced optics on public reporting when it comes to executive pay.
- Minimize any potential excise tax exposure to the nonprofit.
Gallagher Executive Benefits Consulting practice offers a dedicated administration and service team to educate, implement and administer plans for years to come.
