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Why Nonprofits Must Update Their HR Handbooks Every Year


How Regular Updates Improve Compliance, Culture, and Clarity

Nonprofit HR leaders juggle compliance, employee expectations, and evolving workplace norms. Yet one essential tool is often overlooked: the employee handbook. Without annual updates, even the most mission-driven organization risks legal exposure, internal confusion, and cultural misalignment.


Here's why—and how—to ensure your HR handbook remains a strategic asset.


⚖️Stay Compliant by Updating for New Labor Laws

Employment laws shift frequently—especially at the state level. From paid leave requirements to remote work notices, nonprofits must update handbooks to reflect legal obligations.

Failing to do so can lead to fines or lawsuits. For example, certain policies must be shared with employees at the time of hire and be readily available.

 

Tip: Assign one HR team member to track quarterly legal changes and flag them for inclusion.


🤝Promote Fairness and Transparency

An updated HR handbook ensures all employees understand expectations and policies.

Without consistent guidance, managers may apply rules unevenly — leading to perceptions of favoritism or discrimination.

 

Tip: Use consistent language in remote work, PTO, and conflict resolution policies to build trust.


🛡️Avoid Legal Risk and Potential Fines

If your handbook doesn’t reflect up-to-date labor laws or internal protocols, your nonprofit could face litigation.


The Department of Labor may offer a grace period, but lawsuits stemming from unclear rights or benefits can result in costly judgments.

 

Remember: A well-maintained handbook is a protective legal document—not just an HR resource.


🧭 Reinforce Your Nonprofit’s Identity and Values

Handbook updates are also an opportunity to articulate your organization’s identity and values.

Revisit how policies—such as parental leave —reflect your mission and shape workplace culture.


🌐 Modernize for Remote and Hybrid Teams

Remote and hybrid work models require a shift in how policies are communicated.

Posting updates in a physical break room isn’t enough—policies must be digitally accessible.

 

Tip: Upload the latest handbook to your intranet, Google Drive, or HRIS system for remote access.


📝 Annual HR Handbook Review Checklist

Use this quick checklist to review your handbook annually:


  • Federal and state labor law updates

  • Remote and hybrid work policies

  • Anti-discrimination and Equity & Belonging statements

  • Paid leave and PTO policies by location

  • Onboarding, discipline, and escalation protocols

  • Technology and cybersecurity expectations

  • Values-aligned behavioral guidelines

  • Accessibility and employee rights compliance

  • Digital access to handbook for all staff

  • Employee acknowledgment process in place


Need Help Updating Your Handbook?


Our HR consultants specialize in nonprofit policy compliance, remote work adaptations, and culture alignment.



About the Author:


Diana Gallardo-Laska, J.D., SHRM-SCP first joined Kiwi Partners in 2000 and rejoined our team in 2006 as SVP of Human Resources Services. Diana leads a dedicated team focused on outsourced Human Resource services. In her role, Diana is able to utilize her diverse financial, legal and management skills to benefit our nonprofit clients.  Over the years, she has worked with over 200 nonprofit clients delivering human resources services and support. Diana's Bio

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