In addition to trying to accomplish an initiative, nonprofit administrators need to figure out a system for paying back their employees and volunteers for travel expenses.
One easy form of reimbursement is the per diem, which translates literally to “per day.” This means that workers and volunteers are reimbursed based on a daily rate instead of reimbursing them for every receipt.
1. Keep it simple.
Check out the most recent federal per diem rates and make yours the same or similar. The rates change based on geographic area, but you can find those rates at the GSA website or you can download the official app provided by the GSA called Per Diem for Continental U.S. According to reviews, the app isn’t quite stable yet, but it’s a tool to keep an eye on for more features.
2. Be consistent.
You have options as to what your per diem will cover:
- meals and incidentals (like food and the cost of an Uber);
- meals, incidentals, and lodging (lunch, a shuttle from the airport, and a hotel room).
Pick one that will work best for you and make it a consistent policy (which means putting it on your reporting forms).
Related Article: 2018 Per Diem Rates & Mileage Rates Updated
3. Cross the borders you need to cross.
Implement a system that takes care of international per diem management. You need a system that can handles per diem business inside and outside of the United States, as well as meals and expense allowance.
Especially one that customizes the per diem based on whether you’re working with an employee or a volunteer.
4. Give a little more (if you want).
You have the option to increase your per diem rates a little more than the federal rate. If you exercise this option, just remember that anything over the federal rate might mean that your volunteers or employees pay taxes on it.
You have options when you’re implementing expense reimbursement software for your nonprofit. Let DATABASICS Time & Expense take care of your expense report automation and let our Expense Policy Rules enforcement do the online expense management heavy lifting for you.
Spend more time on your nonprofit goals and less time on manually managing complicated spreadsheets.
For more information, contact us or call (800) 599-0434.
DATABASICS provides cloud-based, next-generation Expense Reporting, P-Card Management, Timesheet & Leave Management Management, and Invoice Processing automation. Specializing in meeting the most rigorous requirements, DATABASICS offers the highest level of service to its customers around the world.
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