Nonprofit Variable Pay

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Course Number:72
Category:Variable Pay
Field of Study:Management Services
Audience:HR Managers, Compensation Managers, Compensation Analysts, HR Generalists, Managers
Level of Difficulty:Intermediate
Delivery Method:QAS Self Study
Prerequisites: None
Advanced Preparation:DLC Courses 18 and 21
SHRM BASK:As defined by the SHRM Body of Applied Skills and Knowledge (BASK), this self-study course relates to competencies in Strategic Alignment and Business and Competitive Awareness with functional areas in Talent Acquisition, Total Rewards and U.S. Employment Law and Regulations.
OverviewToday, variable pay is widely used in nonprofit organizations. In this course you will review the regulations that govern nonprofit pay. You will learn how to use different kinds of variable pay plans to target different outcomes, how to design a plan based on a variety of criteria, and the importance of setting reasonable, relevant performance measures. Additionally, organization executives may be eligible to receive rewards from nonqualified deferral plans. This course will examine how the requirements for such plans can be met so taxes on the amount being funded are deferred until the beneficiary starts collecting benefits. Consistent, regular plan review is crucial to maintaining a successful variable pay plan and this course will cover how to do that. It will also look at how to identify and address common variable pay plan pitfalls.
Learning Objectives:
  • Recognize how the Tax Cuts and Jobs Act and Intermediate Sanctions impact nonprofit pay
  • Define private inurement, excess benefit transaction, and reasonable compensation
  • Specify the conditions required to establish a safe harbor for reasonable compensation
  • Identify the persons subject to reasonable compensation regulations
  • Recognize the reasons for having variable pay in the organization
  • Differentiate between different variable pay plans such as STIP, LTIP, recognition awards, and bonuses
  • Identify performance measures and how they relate to outcomes at the individual, group, and organization-wide levels
  • Recognize different types of reward structures such as add-on pay, at-risk pay, and base pay at risk
  • Define threshold, on target, and maximum payout
  • Specify how to design a variable pay plan with targeted financial or management by objectives performance measures
  • Differentiate between nonqualified deferred pay plans such as deferred bonuses, vested trusts, rabbi trusts, and secular trusts
Credit & Professional
Continuing
Education Information:

  • SHRM-CP/SHRM-SCP Credit Information:

    ERI Distance Learning Center is recognized by SHRM to offer Professional Development Credits (PDCs) for SHRM-CP® or SHRM-SCP® recertification activities. This program is valid for 2.5 PDCs for the SHRM-CP® or SHRM-SCP®. For more information about certification or recertification, please visit www.shrmcertification.org.

    SHRM Preferred Provider

  • aPHR/PHR/SPHR/GPHR Credit Information:

    ERI Distance Learning Center is a recognized provider of recertification credits. The HR Certification Institute® (HRCI®) has pre-approved this activity for 2.5 HR (General) credit hour(s) towards aPHR™, PHR®, SPHR®, and GPHR® recertification.

    HRCI Approved Provider
    HR Certification Institute’s® (www.HRCI.org) official seal confirms that ERI Distance Learning Center meets the criteria for pre-approved recertification credit(s) for any of HRCI’s eight credentials, including SPHR® and PHR®.

  • CCP/CBP/GRP/WLCP Credit Information:

    This online course qualifies for recertification credit for the Certified Compensation Professional (CCP®), Certified Benefits Professional® (CBP), Global Remuneration Professional (GRP®), and Work-Life Certified Professional (WLCP®) designations granted by WorldatWork Society of Certified Professionals. For more information on recertification, visit the Society website at www.worldatworksociety.org.

  • CPE QAS Self Study Credit Information:

    National Registry QAS Self Study - Course approved for 2.5 credit(s) in these states:

    Alabama, Alaska, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virgin Islands, Virginia, Washington, West Virginia, Wyoming

    Course approved for 2 credit(s) in Vermont

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Additional Information:
*The Course Credit List displays credits and credit types offered by location.
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CPE Sponsors - Registry
CPE Sponsors - QAS
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The ERI Distance Learning Center is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: https://www.nasbaregistry.org/

ERI Economic Research Institute is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CP® or SHRM-SCP®