Summer will be here before you know it, and for many not-for-profits, that means internships. Although students and recent graduates are often eager to gain job experience as interns, many also expect to be paid. However, according to consulting firm Intern Bridge, 57% of nonprofit internships are unpaid.
Perhaps your budget is already strained. But if you don’t pay your interns, you may limit the number and kinds of applications you receive to only those individuals who can afford to work for free — or who have no other work options. Also, some unpaid internships may violate labor laws. So examine the issue from every angle before you start lining up summer interns.
Your perspective
As you decide whether to pay or not pay, consider what you’d want from an intern. For example, how would the person accomplish the work? Does the job require a lot of upfront training? Will the intern be required to work fixed hours, such as working onsite every weekday from, say, 8 a.m. to noon or 9 a.m. to 5 p.m.?
In general, internships that focus on strategic projects for your organization offer an excellent way to build a pipeline of future employees and leaders. Understand, though, that the more you ask of interns, the more they’re likely to ask of you — both in experience and financial compensation. If you want a serious contribution, you’ll need to treat interns as serious contributors. Consider it a down payment on your organization’s future.
Intern’s position
Also look at the issue from an intern’s perspective. For one thing, an unpaid internship may cost the intern money. When you offer college credit in lieu of pay, interns may have to pay their college for the credit. Other out-of-pocket costs such as housing and transportation can be an insurmountable financial burden. At the very least, consider paying interns enough to cover their costs.
Typically, nonprofits that receive a flood of applications for unpaid internships are high-profile political, arts and entertainment-related charities. If you don’t pay and your intern isn’t going to be working with politicians or celebrities, you’re likely to have a small applicant pool to choose from. Also consider: Unpaid internships don’t always attract the best and brightest candidates. Students with the most impressive qualifications usually have options for paid internships (including with for-profit companies) as well as wage-earning jobs.
FLSA regulations
From a regulatory standpoint, you need to consider whether the Fair Labor Standards Act (FLSA) will apply to your internship positions. Unpaid internships in both for-profit and nonprofit organizations are typically permissible. But applicability of FLSA will likely come down to the work you’re having interns do.
For example, if there’s a commercial aspect to an intern’s tasks, or if the internship involves interstate transactions, FLSA requirements may apply. This could require your nonprofit to pay at least minimum wage and meet other requirements. If you’re not sure if your internships qualify, consult your attorney.
Freeing up funds
Both interns and nonprofits can benefit from internships. Interns gain valuable work experience and an understanding of how a nonprofit operates. You gain extra hands and fresh perspectives on your mission and programming. Contact us to discuss how you might free up funds to pay interns, or at least cover their costs.
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