How Mauve Group can help NGOs on their global journeys

In the not-for-profit sector, the shift from local to global can seem daunting. Factors such as restricted budgets, limited resources and/or personnel, and governance requirements are a few examples of what most non-governmental organisations (NGOs) are working with.

However, expansion into new markets and locations is an exciting step in an NGO’s development towards global success and the ability to support the organisation’s chosen cause on a wider scale.

For any organisation, the management of business responsibilities at global level comes with its risks and considerations. From differing laws and regulations, to various immigration policies, payroll, financial obligations, and much more, there is plenty to take into account when planning to expand into new territories.

This is particularly true for NGOs, as the shift from local to global can seem even more daunting due to limited resources. But if managed correctly, taking the leap can greatly accelerate growth and the reach of an NGO’s mission.

With notable clients such as WaterAid, Family For Every Child, and Teach For All, among almost 50 organisations supported within the non-profit sector, Mauve Group seamlessly applies its extensive experience to guide NGOs of all sizes through every step of their global assignments.

Going global: the unique needs of the NGO sector

In order to expand internationally, NGOs must meet the legal requirements of each of their new countries of operation. As laws vary significantly from region to region, attempting total adherence without the assistance of in-country experts can be extremely complex and present a compliance minefield.

NGO employers must establish their legal status in the country they are expanding into and clarify their purpose within the new location. For some countries, the process is relatively straightforward.

However, often, NGOs will wish to expand into developing nations where foreign entities are only accepted into the country with significant legal burdens. It is, therefore, crucial for NGOs to research their desired countries’ regulations thoroughly, before the expansion process begins in order to ensure full compliance.

It is also important to consider the culture and accepted etiquette of the new country. Additionally, operating in a foreign country adds complexity on a cultural basis. As an NGO seeking support and acceptance from the local community, organisations should embrace and respect the traditions and accepted etiquette of the area.

Operational characteristics

Another key area of consideration for NGOs expanding overseas, includes the operational and logistical aspects of global expansion. Whether employing workers already living in the foreign country or planning on relocating existing employees into the region, NGOs should consider all operational factors.

Resource constraints

Resource constraints are a key operational consideration for any globally minded NGO. Budgets are tight and must be justified to stakeholders – this means finding the most cost-effective option to facilitate international projects.

HR teams at NGOs cannot afford unexpected fees or prolonged delays caused by a lack of knowledge or incorrect practices. Mismanagement of finances can be extremely serious and can lead to investigations in multiple countries, if a breach has taken place. Therefore, organisation is key in ensuring a smooth overseas transition.

Governance

Within an NGO, there are many stakeholders to satisfy. Charity governance codes outline decision-making and accountability rules, and this can mean that proposals may need to pass through a number of different departments and approvals before being greenlit.

This can be challenging when attempting to balance fulfilling governance requirements with often time-sensitive global HR requirements. NGOs must also adhere to stringent governance mandates regarding risk, safeguarding, anti-bribery, and corruption.

This can mean considerations relating to cross-border payments, due to local money laundering rules. Foreign exchange rates and associated bank charges can cause potential monetary losses, if paying into local bank accounts.

Charities are also responsible for ensuring they are not breaching any financial sanctions placed on individuals, organisations, or countries. To do this, they require full transparency across their global operations and must carry out due diligence on potential partners to avoid breaching their legal responsibilities.

Assignment level variations

Type of assignment

The needs of NGOs frequently vary considerably depending on the type of position required to be filled. An employee could be hired in-country, for the purpose of filling the role. Or, an existing worker could be seconded abroad. Whether they are a salaried staff member or volunteer, will also impact the recommended global employment solutions.

Length of assignment

The length of the assignment must also be taken into account, when hiring internationally. In the NGO sector, workers often urgently need to travel abroad temporarily, to address crises such as natural disasters or outbreaks of conflict.

In other cases, employees will work abroad for sustained periods of time. Varying timelines will have an impact on the contract type and length required, e.g. fixed-term, temporary etc.

Location

In terms of location, it is common for NGO staff to move around frequently. Often, teams will need to prioritise logistics to serve areas with the greatest, most immediate need. Or at times, staff may require access to multiple countries within one assignment.

Therefore, contracts and immigration routes will need to be planned meticulously to ensure compliance.

Hazards

The work of international NGOs and aid organisations can, at times, be dangerous. Whether carrying out their vital activities in locations of instability or conflict, or in the wake of natural or manmade disasters, workers aften find themselves in hazardous environments.

Staff safeguarding is, therefore, a paramount element in assignment planning. International security, tracking, and 24-hour assistance services may be required externally, if the organisation cannot provide this in-house.

Key considerations

Mistakes in global employment usually stem from lacking a comprehensive understanding of the individual circumstances of the project at hand, or applying a time or cost-saving solution that is inappropriate or cuts corners.

As there is rarely a ‘one size fits all’ approach to global mobility, it is vital to take time to weigh the situation up properly, speak to experts, and ensure a well-rounded view beforehand. The following questions can be helpful to gain a better understanding:

Location

Where will the individual be located? From a duty of care and compliance viewpoint, what is the stability of that location?

Nationality

Where is the individual from? This could raise further questions about visas, tax liability etc. and is, therefore, an important consideration.

Relationship

How is the person connected to your NGO? Are they a temporary hire and will they be offered another position with your NGO, once the original project is complete?

Timescale and scope

What type of work will the individual undertake at the planned location and for how long a period? What are the commencement and completion dates?

Legal, HR, and contracts

What type of contract suits the assignment – fixed-term, permanent, part-time? Is the individual considered a contractor or a full employee? If you are unsure about the legal definition of the person’s role, take the 20-Factor Test to confirm – this can be supplied by a Mauve Group representative.

Look at local labour laws – are your HR practices and standard terms acceptable in the country of work? What does local legislation say around performance, disciplinary, and termination procedures?

If a charity is registered in multiple countries, it is still required to follow the laws of each country – there is no one centralised governing legislation that will override local law.

Some countries require all branches to act in line with the laws of that country. For example, charities registered in England and Wales must ensure all global branches and personnel act in line with the Bribery Act 2010.

Tax, payroll, and payments

Where should the employee be paid? What is their salary? Are there any bonuses, rewards, or expenses due? Do these align with the expected salary levels or legislated in the future country of work?

Will payment for their assignment come from your organisation, a local branch, or third party? The possibility of fluctuating exchange rates should be considered – and if payments will be made to or from a local bank account, consider the logistics of this and any losses which may be incurred as a result. Where do they pay tax and SS? Are you creating any tax liabilities locally through your chosen solution?

Partners

Does your NGO have any local partners which can assist with either advice or services? This may be a local charity partner or a third-party specialising in local hire/HR such as lawyers, accountants, and so on.

Future plans

Is this hire/relocation the gateway to more significant regional operations in the future? A temporary solution may need to evolve into a permanent one further down the line.

Do you need to take steps to strengthen the organisation’s position, by establishing a branch or some other form of local entity? It could be more cost-effective to do so, if operations are likely to become long-term.

Entity types and structure

If you are considering setting up a local charity or an overseas branch, think about the legal structure of your existing organisation – and what this means for your overseas options.

Can you register your charity in-country? How will you arrange the organisational structure and autonomy between the central organisation and the local offshoots? Do you need to change the scope of your organisation at home, to include international practices?

Is your existing entity incorporated or unincorporated – will your trustees remain at central level, or will you require trustees in each country?

Facilitating global assignments

The methods available to an organisation, to enable an assignment, will depend greatly on individual circumstances, as these will all interact differently with local employment, tax, and immigration laws.

It is important for NGOs to carefully examine their answers to the above questions, seek expert advice and guidance, become familiar with local laws and regulations, and gauge which option benefits the goals of the assignment the most.

The main routes include:

Employer of Record

A third-party organisation specialising in global employment can provide a type of service known as Employer of Record (EoR). Through this solution, an NGO is able to outsource the employment of the worker to the EoR company’s local entity, but still retain control over the employee’s day-to-day activities.

EoR companies are well versed in the local legal knowledge, necessary to employ individuals and can cut through the local red tape on your behalf. They will take on responsibility for multiple requirements, including local payroll and liaison with the authorities saving you time, expense, and stress.

Global business expansion

If your operations are almost certainly going to be long-term or permanent, or you have a large number of individuals to hire, it may be a more cost-effective route to establish a local entity.

This also depends on the individual circumstance of the project and location. There are many types of entity options in each country and without full local knowledge, understanding the process can be complex – a third-party expert supplier can advise on the best option.

Global payroll

Engaging Mauve Group’s Global Payroll service will allow your NGO to entrust all in-country payroll services to Mauve. We will ensure 100% tax compliance and timely remittance of salaries to your workers abroad. Our local experts establish in-country payroll, including employee registration with the local authorities.

Our global payroll experts create and file comprehensive reports, as well as securely-held payroll records – which are accessible at all times. Our team also keep abreast of all the latest updates to local tax regulations and incentives, and can make any and all necessary changes.

Global HR and compliance

Mauve Group’s Global HR team ensures that workers on the ground have 24 hour in-country support. The team can support NGOs with policies and procedures, employee handbooks, performance management, absence management, employment factsheets, global mobility guidance, and the onboarding and offboarding processes.

Our Global HR team can support NGOs with overseeing compliance, ensuring all labour practices, salaries, and contracts are in adherence with local regulations

We can also help NGOs to establish equitable pay structures and reward schemes for their international staff.

Visa and immigration

Mauve Group’s team of experts in global visa and immigration can support NGO clients to comply with visa, immigration, and residency rules in their country of expansion.

Our experts advise on the best immigration routes, and carry out corporate work permit, global visa, and residency applications. So, NGOs can trust Mauve with the efficient and compliant transfer of employees.

Independent contracting

If the scope of work is for a fixed term and meets certain criteria, independent contracting is another option for an NGO. To be considered an independent contractor, the worker should generally contract to multiple clients, have their own equipment, and should manage their own hours and activities.

If they could be characterised as a full employee, there are heavy penalties imposed for misclassification as an independent contractor. Solutions like Agent of Record can ensure your contracting agreements are fully compliant.

Consultancy services

Global mobility organisations have the network, knowledge, and resources to provide consultancy on the NGO’s unique global scenarios.

These expert companies can bring red flags to light and recommend best-practice options on all local operations. These can relate to payroll, taxation, immigration, HR, and employment law – reducing the likelihood of risks or penalties incurred through inexperience.

Your organisation can then put this guidance into practice as it sees fit.

WaterAid Testimonial

Since its inception, Mauve Group has supported many NGOs with their global mobility. One such charity is WaterAid.

WaterAid is an international non-governmental organisation, dedicated to water, sanitation, and hygiene. It was set up in 1981 as a response to the UN International Drinking Water decade.

“WaterAid America and WaterAid UK have been working with Mauve Group for the past year and have utilised their services in the capacity of Immigration/Employment / Corporate and Individual Compliancy Consultancy. I have been very happy working with Mauve Group.

The pricing is quite reasonable. I sometimes have follow-up questions after receiving the initial report and I have never been asked to pay anything further. I have been impressed with their service and they have exceeded all expectations. I strongly recommend working with Mauve Group for your global mobility needs.”

– Jill Krueger, Senior International Reward Manager, WaterAid

To find out more about how Mauve Group can help your NGO go global, contact our team today.