Reply To: Tips for budgeting with high inflation

#553
Ruth McCambridge
Participant
    @ram

    A compilation of other responses to Kristine were sent in by email and are posted below.

    What I like about these is the specificity plus the focus on staff pay and benefits during inflation. I placed Marvin’s third because that is the order in which these came in but I think his comments are particularly apropos on this day when racial equity was given at least a nod in the ed debt reduction action from the White House. The historic moment is being taken into account by many posting in these forums as we have already noted even and maybe especially in times of inflation. .Here is what Marvin had to say in part: ” justice costs money. It would be great for newer EDs to see this as a constant instead of an add-on. The next generation has a shorter waiting timeframe for the execution on justice. Whether it be total compensation or benefits. Giving someone 2 weeks isn’t the standard. But many think that is still us and adhere to it. While wondering why their staff isn’t rejuvenated. Or why new moms are so exhausted after returning to work after 2 weeks off after the birth of their child. These policies and the funds to support them haven’t changed in decades. ”

    FROM JEFF: I really like one of the suggestions in a different forum about doing a one-time Cost of Living Bonus vs. an ongoing salary adjustment. Helps people who need it, but also buys time to see what happens next. I know one standard trick of small nonprofits – that I do not like – is telling people “Ok, your salary stays the same but you can just work 35 hours instead of 40.” I think that is unfair to the worker and doesn’t really help because their mortgage and grocery bill didn’t drop 10%. So it’s not really a raise.

    Jeff Russell – CEO
    Jitasa

    FROM NANCY M: We use the June NYC CPI to determine salary increases for the fiscal year starting October 1. Since gas prices were a big issue, we created a special gas reimbursement for staff that are required to drive to complete work responsibilities. Full time staff that drive 4-5 days a week were given an extra $100 incentive each quarter (every three months beginning April 1, 2022) when gas prices in NYC average above $3.50 per gallon. Part time staff that drive 1-3 days per week are given $50 every quarter. This is in addition to the federal mileage reimbursement rate which was recently raised.

    from Nancy M.

    FROM MARVIN: Firstly, I do wonder what’s the organizational salary ranges? If they are closer to the poverty level then the organization should be budgeting more for things like COLA and other financial benefits. But if the salary ranges are higher than market for the job titles then those ranges might be enough to support staff. Then there’s less need to provide benefits piece by piece which seem more defensive than offensive.

    Secondly, I do budget a separate sum of funds for operational opportunities versus a separate sum of money for larger staff training and other needs annually. When George Floyd was murdered I saw a lot of orgs posting emails of racial support but not as many offering mental health support to black and brown folks. Or helping staff deepen their own DEI organizational work.

    Finally, justice costs money. It would be great for newer EDs to see this as a constant instead of an add-on. The next generation has a shorter waiting timeframe for the execution on justice. Whether it be total compensation or benefits. Giving someone 2 weeks isn’t the standard. But many think that is still us and adhere to it. While wondering why their staff isn’t rejuvenated. Or why new moms are so exhausted after returning to work after 2 weeks off after the birth of their child. These policies and the funds to support them haven’t changed in decades.

    I think it is time.

    Best,
    Marvin Webb, MS, MBA, MFA
    Chief Financial Officer
    Funders for LGBTQ Issues

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