Posted by Working for a Not For Profit (NFP) is very different from working for a large corporate. The focus is not on profit, but on how much money can be spent on life-changing programs or initiatives for those who need them.
As a result, NFP’s are generally unable to offer competitive salaries and are often below the market rate for most of the positions they fill.
So how do they get the best people available? By using their status as a charity to build FBT into their salary packages.
While they are unable to offer the same dollars as other organisations, many of them allow staff access to FBT. This allows staff to pay for a range of things before tax, for example, they include cars, computers, rent, mortgage repayments, weekly entertainment.
The list is almost endless. According to the ATO, it includes:
- Car fringe benefits
- Car parking fringe benefits
- Entertainment and fringe benefits
- Expense payment fringe benefits
- Loan fringe benefits
- Debt waiver fringe benefits
- Housing fringe benefits
- Board fringe benefits
- Living away from home allowance fringe benefits
Keeping track of your FBT as an NFP can be a complicated process, and in some cases, it can be an expensive one.
"At easyFBT our goal as always been to create a product that can in many cases seem bespoke for the business that purchases our software," co-founder Matthew Smith says. "For NFP’s we don’t charge like wounded bulls, and are able to offer them a service that suits their needs and budget."
The goal of any NFP should be to save money where they can, easyFBT provides them with that opportunity.