I-9 Compliance for Nonprofits: What You Need to Know

I-9 Compliance for Nonprofits: What You Need to Know

As someone who's spent 15 years working with nonprofits, I've seen mission-driven organizations get blindsided by I-9 compliance issues. Nonprofits are particularly vulnerable to I-9 violations, and it's not because they're careless. It's because they're often operating with lean HR resources, wearing multiple hats, and focusing (rightfully) on their mission over administrative details. But I-9 violations can be costly for organizations.

So what makes I-9 compliance tricky for nonprofits? Here are a few things:

1. The Volunteer-Employee Gray Area - Many nonprofits blur the lines between volunteers and employees. But if someone receives any compensation, including interns, they need proper I-9 documentation.

2. Remote Work Reality - COVID-19 changed everything for nonprofits. Now we are onboarding program coordinators in different states, managing virtual orientations, and trying to figure out document verification from a distance.

3. The "We'll Get to It" Problem - In nonprofit life, urgent often trumps important. I-9 completion gets pushed aside for grant deadlines, board meetings, and program crises.

Now, let's talk E-Verify. E-Verify is a free online system that allows employers to confirm the eligibility of their employees to work in the United States. The system cross-references information from Form I-9 with federal databases to verify employment authorization. While E-Verify is mandatory for federal contractors and employers in certain states, it's voluntary for most other employers.

But even when it's not required, I often recommend it to my nonprofit clients. E-Verify provides a layer of protection that shows good faith effort to comply with employment authorization requirements. In our sector, where public trust is everything, this matters.

The critical timing rule: You have exactly three business days after an employee's start date to run their E-Verify case. Miss this window, and you're already in violation territory, regardless of the employee's actual work authorization status.

Some examples of the risks when you are non-compliant:

• Audits
• Financial penalties
• Operational and organizational disruption
• Legal consequences

Now, all of this begs the question: Where to start when it comes to getting compliant?

• Don't copy corporate compliance programs. Design systems that work with your budget, staffing, and operational realities.
• Centralize responsibility
• Designate one person (with a trained backup) to handle all I-9 processes.
• Create simple processes (same-day completion, document everything, conduct regular internal reviews)

The good news? Solid I-9 compliance doesn't require expensive software or complex systems. It requires attention to detail, consistent processes, and proper training. I always tell my nonprofit clients: "You can't afford to be non-compliant, but you also can't afford to overcomplicate this."

I-9 compliance helps you protect your organization's ability to fulfill its mission. Every compliance failure threatens your credibility, your resources, and ultimately, your impact. As always, remember that people matter most!