Making a living from a nonprofit can provide access to a network of like-minded people and the opportunity to make a real difference. If you’re interested in making a living this way, it’s important to gain experience, network, and be patient.
Nonprofit workers often become multi-skilled, which can help build one’s career. You will meet many leaders who serve on boards or as volunteers. The truth is that the sector provides exciting, lifelong work.
Getting Started with a Nonprofit
Volunteering can help get a nonprofit job. To be tax-exempt, a nonprofit organization must operate and provide services without the primary goal of making money. Nonprofits serve the public interest and usually file tax returns with the State Attorney General or Secretary.
Successfully running a nonprofit hinges on having a passion to make a difference and the skills to make the dream come true. The barriers to entry are pretty low, but growing an organization takes resources. A common misconception is that nonprofits cannot earn a profit or pay employees.
How Do Nonprofit Founders and Executives Earn a Living?
Nonprofits make money through grants, donations, and business activities. Nonprofit founders can receive fair pay, which depends on role and experience. Founders can receive compensation for work. Other ways founders make money include travel reimbursements and paid meals. Nonprofit pay depends on factors like organization size.
Nonprofits can earn profits that must fund operations and services with transparency. Common funding sources are grants, donations, fees, and investments.
Can CEOs of Nonprofits Make Money?
CEOs of nonprofits earn a salary through compensation packages approved by the organization’s board of directors. These packages may include a base salary, performance-based bonuses, and benefits. The salary is typically based on factors such as the CEO’s experience, the size and complexity of the organization, and prevailing market rates.
Setting the CEO’s Salary
The board of directors is responsible for setting the CEO’s salary. While a nonprofit itself cannot earn a taxable profit, the people who run it can receive a taxable salary. The average nonprofit CEO makes a little more than $120,000 a year. Most nonprofits have paid staff, and the founder of a nonprofit can be the CEO.
Income Channels
Nonprofits can apply for grants, hold fundraisers, and engage in business ventures to fund operations and pay salaries.
The bottom line is that non-profit founders and employees are paid from the gross revenues of the organization, and these salaries are part of operating costs.