Expanding and managing your operations overseas as a nonprofit organisation isn’t an easy fit
There’s a lot of thorough planning and research involved, and costs can quickly add up, making it harder to tackle global expansion as a charitable company. Luckily for you, here at Seamless, we’ve been helping nonprofit organisations expand overseas for years and have the knowledge and expertise to help you lower your costs and mitigate risks.
Factors to consider in global expansion
Risk mitigation and cost reduction are critical for your nonprofit organisation as you expand overseas. For one, you’re probably working with a strict budget that limits the number of resources available to you, making it harder to set up and expand globally.
Additionally, because you’re not a traditional, for-profit company, you have to determine the correct legal structures that apply to your charitable company, which can be difficult and confusing.
All these challenges mean that you need to plan and outline a detailed global expansion strategy that helps you:
• Save money
• Seamlessly set up and grow
• Mitigate a myriad of risks
• Manage tax compliance abroad
Remember, nonprofits face a unique set of challenges when expanding overseas that can be difficult to navigate. For example, the tax exemption status in your country may not apply in a foreign market, resulting in a greater financial burden.
It’s advisable to work with end-to-end global expansion experts like Seamless, who can help optimise complex international laws, finance and regulations, streamlining the expansion process.
One of the hurdles you’ll face while expanding globally is hiring staff. Since it’s a foreign market, finding the right like-minded individuals who share the same values as your charitable organisation may be challenging.
Here are some factors you should consider before hiring to ensure you get the right team for your nonprofit.
1. Choose the right hiring method
For nonprofits, selecting a compliant hiring method is key to avoiding costly issues and mistakes down the road. With the wrong hiring method, it’s easy to misclassify workers and put them in the wrong positions, leading to significant fines and reputational damage.
And, if you’re working with a tight budget, such issues can significantly hinder your global expansion process. This is because you won’t afford to hire a legal team to handle litigations filed against you.
A great strategy to use when hiring overseas is partnering with an Employer of Record. This method reduces costs and mitigates risks as the Employer of Record employs staff on your behalf and handles their payroll while you focus on maintaining daily operations.
2. Be flexible
Expanding overseas can at times present unexpected obstacles that force you to leave the market sooner. If your nonprofit isn’t flexible, this exit can be expensive due to dissolution costs and the time, effort and resources wasted on establishing your entity overseas.
However, by choosing more flexible methods like an Employer of Record, you can off-board staff at any time with no additional financial repercussions.
3. Adhere to tax requirements for nonprofits
Tax requirements vary significantly from country to country. That’s why tax laws for nonprofit organisations in the UK aren’t similar to those in the US, and if you want to expand to either continent, you’ll have to familiarise yourself with their laws and adhere to them.
Before hiring in any country, work with a global expansion expert like Seamless to help you navigate any complex tax requirements. They have advanced knowledge of tax laws and regulations in target markets, ensuring your nonprofit remains compliant.
4. Comply with changing rules and regulations
Similarly, it’s crucial to comply with local rules and regulations in the country you’re looking to expand to, including:
• Withholdings and taxes
• Benefits such as paid time off, retirement plans and healthcare
• Termination and severance agreements
A global expansion partner can help you manage ongoing tax compliance and stay up-to-date with changing rules and regulations.
The right global expansion partner
Seamless is the right global expansion partner for your nonprofit, as we know what it takes for a charitable organisation to succeed overseas. We find solutions to common global expansion problems and provide unique insights that streamline your operations.
Get in touch with us today to learn more about our global expansion services for nonprofits.