Nonprofit Variable Pay

Recognition Awards – One-Time Awards

Recognition awards are typically one-time awards including:

• Spot bonus awards
• Supervisor, manager, executive director/CEO awards
• Peer awards
• Organization-wide awards

Recognition awards can be paid to an individual, team, or even organization-wide for extraordinary contributions or for significantly and consistently far exceeding expectations. Such awards can be delivered through cash, time off, or even prizes. They can be awarded spontaneously by the supervisor, manager, or executive director/CEO. Typically, the value of the award will increase as a result of the management level approving the award. For example:

Management Level	Recognition Award (Authority Level)
Supervisor	$100
Manager	$500
Executive Director/CEO	$5,000

Recognition awards can be delivered during monthly or quarterly group meetings with visible recognition. The reason for the award may be as minor as how an employee treated a challenging client or situation, or as major as an R&D breakthrough on a project.

Recognition awards are commonly delivered as a lump-sum award. One advantage of this is that a lump sum award does not roll into base pay. Funding for the plan may come from a special budgeted fund. It typically will not replace the merit budget.

Bonuses – One-time Awards

One-time bonus awards are typically awarded upon the successful completion of an event. Common types of one-time bonuses include:

• Accomplishing mission goals
• Employee referral bonuses
• Retention bonuses
• New hire bonuses

The target amount is typically agreed to prior to the event and, upon successful completion, the award is earned and paid to the eligible employee(s). Appropriate documentation will accompany these one-time bonuses clarifying the amount of the award and criteria for delivery of the award.

One-time bonuses are typically delivered in cash.