Running a nonprofit is no small feat, is it? It’s incredibly rewarding to chase a mission that matters, but let’s be honest – it’s also a juggling act. And at the heart of it all? Your people. They’re the ones bringing your vision to life. That’s where Human Resources (HR) comes in. It’s the glue that keeps your team motivated, compliant, and firing on all cylinders. This article will walk you through seven HR functions that every nonprofit should have on their radar in 2025. Plus, we have included a few free resources to make your life easier!

  1. Termination Policy Template 
  2. Offboarding Checklist
  3. Compliance Checklist 2025 
  4. Onboarding Checklist 
  5. Performance Improvement Plan 
  6. Warning Letter Template
  7. Employee absence Tracker
  8. Protected Leaves Policy 
  9. Functional Abilities Form 
  10. Medical Consent Form
  11. Compensation Policy
  12. Employee Benefits Policy
  13. Continuation of Benefits Coverage Letter
  14. Wage Adjustment Letter
  15. Vulnerable Sector Behaviour Management Policy
  16. Webinar Recording: Managing Sick Leaves and the Importance of Medical Documentation
  17. Webinar Recording: Disability Management and Claims Handling

Click here to download all resources!  

1. Termination and offboarding

Let’s start with the tough stuff. Ending someone’s time with your nonprofit isn’t fun, but it happens. And here’s the kicker: recent court rulings have shown that a sloppy termination policy can land you in hot water. Done right, offboarding keeps you legally safe, protects your reputation, and closes the chapter respectfully. Have you ever thought about how your termination process stacks up?

Best practices:

  • Put a clear, written termination policy in place (and double-check it follows labour laws!).
  • Keep those termination documents fresh—legal standards shift more than you’d think.
  • Exit interviews—do you do them? They’re gold for honest feedback.
  • Don’t forget the basics: collect keys, revoke system access, you know the drill.

2. Labour law compliance 

Nonprofits aren’t immune to the law—labour regulations are a big deal, and slipping up can mean fines or a bruised reputation. Staying compliant isn’t just about dodging trouble; it’s about keeping your team safe and supported. How confident are you that your nonprofit’s on the right side of the rules?

Best Practices:

  • Stay in the loop on labour laws—they’re always evolving.
  • Keep your records tight and organized (you’ll thank yourself later).
  • Regular audits—boring but worth it.

3. Recruitment and onboarding

Your people are your superpower, right? Finding folks who don’t just have the skills but get your mission is huge. And once they’re in the door, a solid onboarding process sets them up to hit the ground running. What’s your go-to trick for welcoming new hires?

Best Practices:

  • Write job descriptions that scream “this is us”—skills and heart.
  • Spread the word on social media or nonprofit job boards—cast a wide net!
  • Onboarding shouldn’t be chaos—give them a roadmap to settle in fast.

4. Performance management

Ever wonder why some teams hum along while others stumble? Performance management is the secret sauce. Without it, expectations get murky, frustration creeps in, and goals slip. Regular check-ins keep everyone on track and tied to your mission. How often do you sit down with your team to talk progress?

Best Practices:

  • Set goals they can actually measure—no vague “do your best” vibes.
  • Schedule those performance reviews—consistency matters.
  • Feedback’s a two-way street: help them grow with clear next steps.

5. Managing leaves and absenteeism

Life happens—people get sick, need breaks, or face big moments. But when absences pile up, or comes unannounced,  it can throw your team off balance. A smart leave policy keeps things fair, legal, and running smoothly. What’s your approach when someone’s out for a while?

Best Practices:

  • Spell out your leave policy—eligibility, steps, all of it.
  • Protected leave laws are non-negotiable—make sure you’re covered.
  • Document medical leaves (it’s a lifesaver if questions pop up).
  • Train your managers to handle requests with fairness and a human touch.
  • Track absences and balances—Use our Excel-based tracker!

Watch this:

6. Compensation and benefits

Even in the nonprofit world, you’ve got to pay people fairly—it’s how you snag and keep great talent. A solid package (money and perks) shows your team they’re valued. Plus, it cuts down on that revolving door of turnover. What’s one benefit your team loves most?

Best Practices:

  • Peek at what others are paying—stay competitive.
  • Mix it up with cash and extras like flexible hours or wellness perks.
  • Be transparent about pay—no mysteries here.

7. Volunteer management

Volunteers—where would the world be without them? They’re amazing, but keeping them engaged takes work. Without structure, they might drift away, and that’s a loss nobody wants. How do you make your volunteers feel like part of the family?

Best Practices:

  • Give them clear roles—no guesswork needed.
  • Train and support them—they’re not mind readers!
  • Say “thank you” in big and small ways—it goes far.

Here’s the bottom line: great HR isn’t just paperwork—it’s about building a team that’s strong, happy, and all-in on your mission. These seven functions? They’re your roadmap. And with those free resources, you’ve got no excuse not to dive in today. What’s the first HR area you’re tackling this year?

About HR Covered: We get it—Canadian nonprofits have unique needs, and we’re here for it. At HR Covered, we offer everything from HR compliance and legislative training to documentation, health & safety, legal support, consulting, and outsourcing. Curious? Visit www.hrcovered.com or or give us a shout at +1 866-606-0149. Let’s chat about making your nonprofit thrive!