Nonprofits may be tax-exempt, but that doesn’t mean they’re off the hook when it comes to compliance. In fact, they face a whole other layer of complexity—from managing grants and tracking restricted funds to filing IRS Form 990 and maintaining donor trust.
The stakes are high, and the paperwork never stops. That’s where payroll & HCM services come in.
Compliance Is Different for Nonprofits
Unlike for-profit businesses, nonprofits must make their financial and operational records publicly available. That means donors, board members, and regulators are all watching.
They’re also responsible for payroll taxes and FICA contributions, even with their tax-exempt status. And if you’re managing state, federal, or local grants, the recordkeeping requirements are strict—and non-negotiable.
Add in the need for detailed reporting and fund accounting, and it’s easy to see how compliance can quickly become overwhelming.
Fund Accounting and IRS Reporting
Nonprofits must track every dollar with precision. That means managing both restricted and unrestricted funds, aligning grant expenses with agreements, and generating accurate financial reports—from income statements to cash flow.
Effective fund accounting is essential for aligning every dollar with its intended purpose and donor restrictions.
And let’s not forget Form 990. It’s not just a form—it’s a public-facing statement of your nonprofit’s mission, spending, and compliance. It’s also a key part of IRS reporting requirements for nonprofits. Mess it up, and your tax-exempt status could be at risk.
The good news? With the right solution, you can get it right the first time.
Payroll Matters More Than You Think
In a nonprofit, payroll isn’t just about paycheques. It’s about compliance with grant conditions and state and federal labor laws. Whether you’re paying salaried staff, contractors, or part-time employees, every detail counts, from classification to timesheets to reporting.
Payroll management for diverse nonprofit employees is complex. From executives to hourly staff and volunteers, no two roles are alike. And when you’re managing payroll taxes for nonprofits, precision is everything.
With an integrated payroll solution, you can avoid errors, stay compliant, and keep your team focused on your mission, not on paperwork.
Accurate payroll for nonprofits is more than just processing paychecks—it’s a key piece of the compliance puzzle.
The Right Tech Can Change Everything
Strategic decision-making starts with solid data. But when your HR systems are fragmented, it’s harder to connect the dots. Our integrated HCM solution brings Managing payroll, reporting, and compliance isn’t just a back-office task—it’s mission-critical. And the right technology can make it a whole lot easier.
A solution like IRIS’s nonprofit payroll software is built for the complexity nonprofits face. Our platform:
- Simplifies payroll and compliance with automation and guided updates
- Generates grant-ready reports in just a few clicks, helping with automating nonprofit financial reporting
- Integrates with your existing accounting system for a seamless experience
- Stores documents securely in the cloud—so audits aren’t scary anymore
- Provides technology solutions for nonprofit grants that align reporting with grantor requirements
Whether you’re managing payroll, reporting, and compliance across multiple grants—or just trying to reduce the admin load—we help you do it all with confidence.
Real Results: Riverfront Museum
Ruth Bittner, Vice President of Finance at the Riverfront Museum in Peoria, knows the pain of overpriced, clunky payroll systems. When she switched from a national provider to what’s now IRIS Payroll & HCM Services, she saw immediate results.
From streamlined payroll to personalized support, IRIS became a trusted partner, freeing her team to focus on serving the community rather than troubleshooting software.
Simplify Payroll, Strengthen Your Mission
Managing payroll, reporting, and compliance is just the beginning. With the right HR compliance solution for nonprofits, you can operate more efficiently, reduce risk and focus more on delivering impact. Here’s what that looks like in action:
- Greater efficiency through automation: Time tracking and wage calculations are streamlined, reducing manual work
- Improved compliance and accuracy: Human errors go down while reporting stays in step with changing regulations
- Stronger data protection: Sensitive employee information is safeguarded with secure, cloud-based tools
- Better resource allocation: Staff can spend less time on admin and more time driving programs forward
Clearer insights for smarter decisions: Real-time data helps you understand labor costs, staffing needs, and budgeting at a glance
Let’s Make Compliance Easier
Running a nonprofit is hard enough. Let IRIS make the compliance side easier. With a solution built for your world—and expert support at every step—you can spend less time managing forms and more time making a difference.
Discover how IRIS Payroll & HCM for Nonprofits can support your mission and amplify your impact. Better yet, get in touch to schedule a personalized demo.
