Are You Satisfied with Your Nonprofit Salary? Why or Why Not?

One unspoken factor in "a culture of low salaries" is sexism, plain and simple. If the religious group provides a place to live and continued support during retirement (as for nuns,) that's one thing.

If an organization is hiring people from the general population, they are subtly reliant on women with high-earning husbands and on people (usually women) who have bought into a choice that is essentially self-destructive.

Personally, I do not want to be a 70 or 80 or 90 year-old utterly dependent on the very kinds of organizations I'm working for in youth. The expectation is a bit insulting, in my opinion.

Good topic, Rosetta!

Personally, I think I am underpaid considering what I bring into my organization in terms of revenue, but the tradeoffs of interesting work and flexibility are worth it for me right now. In my case, my frustration with my current employer centers on the complete lack of deliberate professional development (or any, actually!) and lack of access to and funding for a retirement plan. Almost more than pay, it is these kinds of things that make working in a nonprofit a less sustainable career choice for many.

My biggest issue with nonprofit pay is the lack of integrity around mission when it comes to pay and benefits for some organizations. I worked for an organization that served medically underserved women with breast cancer. Because staff had poor health insurance, I could have accessed the services that my employer funded if I were diagnosed with the disease. Another example: my brother-in-law works for a homeless shelter, doing some administrative work and some direct service. At his pay rate, he definitely falls under 200% of poverty and could qualify for many of the services he helps his clients connect with. These types of decisions around pay and benefits demonstrate a misalignment of organizational behavior and mission/values. I think this is a significant integrity issue for the sector that is swept under the rug in far too many organizations.

Sarah, your comment is really insightful. And you're right... how are we supposed to fight the things that plague our nation, like hunger and poverty, if we can't even afford to feed and house ourselves? It's so tough when you can't afford to do good anymore because you don't get a retirement plan or you can't pay for health insurance. I've seriously considered leaving the field (or at least going to work for a private/corporate foundation) because it's hard to watch my friends get all these great benefits and I feel like I have to slum it because I work for a nonprofit.

I keep going back to this article by Dan Pallotta... he always says this stuff better than I could:
http://blogs.hbr.org/pallotta/2009/09/the-data-on-martyrdom.html

I would love it if someone would call and make a donation and say "I want this to go to employee salaries". Just once.

I think about this often, and mostly because I have substantial student loan debt from my undergraduate education, and I am fast approaching a time period in which I will no longer be able to pay the low monthly payment I have now on these loans and will be required to pay the standard, 15 year repayment amount, which is nearly an entire paycheck for me right now. I can live off my salary, and I have decent benefits (though I wouldn't say stellar), but I am in fear of the day I will have to leave this sector and move into for-profit to make ends meet. I worked in the for-profit world for about a month before I found my job, and when I was leaving that for-profit job for my current non-profit position, they were offering me a starting salary (to stay at that job) that would have been almost 10k more than what I make now, but I left. I was miserable in that job! It didn't align with my values and goals and dreams at all. I think everyone should receive fair compensation for their work, and I would love it if the disparity between for-profit and non-profit salaries was not so gapingly wide, but I don't know that this will ever be true given the funding/business model from which a non-profit works. In my specific field, especially, when there is so little money going around and we are so service-based, everyone's goal is to get the majority of that money/benefit going to the people we serve vs. those doing the serving.

Fair compensation is important for attracting and retaining great staff who can develop and execute great programming. Unfortunately, many orgs fall into the trap of stretching. Stretching to add programs and to serve more people. Growth is very expensive and costs profitability, or in the case of nonprofits, residual income — the money that could go to fair wages. Effective management requires an ability to adeptly manage both levers — growth and profitability.

Competition also hurts the nonprofit sector impacting salaries. As long as the funding process pits like organizations against one another there will be an overlapping excess of back office expenses that drain the entire pot. Cooperation between organizations could go a long way to alleviating the problem.

How ironic! This was the topic of my fundraising roundtable this month! For a different twist, we started the roundtable with the assumption that everyone was looking for an increase in pay. That said, we identified what leverage is available to increase one's pay.

Fundraisers have the ability to quantify our worth. We can clearly present the financial landscape before we started working at the organization and how we improved it. Please note, this practice is not limited to fundraisers. If you have increased services, memberships, relationships or have established a social media presence for your organization, let it be heard. More, any accomplishment is fair game. As such, keep track of your accomplishments. Do periodic status reports. This visual representation helps you and your boss recall your accomplishments seasonally. Together, this portfolio could prove useful in future employment endeavors.

Hope this little bit helped!

When looking back to when I first started in the sector 10 years ago, I am satisfied with my current salary. What challenges me, however, is how far removed I currently am from the actual work at the ground level. I started out in a 3-person staffed community based organization. Even though I was making peanuts and had no health insurance, I knew hands down that the work I was doing was making a direct impact on the lives of the children and families I came into contact with on a daily basis. At the time I couldn't afford much, but I was truly fulfilled by my work. By moving around (geographically and among organizations), I have been able to increase my salary over time, BUT the opportunity cost of being layers away from the work 'on the ground' is tremendous for me. In my current role within a national nonprofit, I get paid more to push paper. It is by no means fulfilling, but it pays the mortgage. As I look at the level of passion, entrepreneurial drive, and overall fulfillment held by some of my counterparts who are working at the local level, I'm ready to give up the check and head back to the community to make a true impact.

I am disappointed in the fact the non-profits invest so much money in consultants vs. the actual staff of the organization. I knew entering the non-profit field that I would not be making "the big bucks" - that has never really been an ambition of mine. My ambitions are community, education, equality, etc. That being said, I think some non-profit professionals, especially YP's, feel overworked (honestly, a feeling a dedicated non-profiteer needs to get used to) and extremely unpaid (something non-profits need to address).

Don't get me wrong - I don't expect to make a 6-figure salary EVER - but appreciation for the additional hours/absorbed responsibilities after layoffs would be nice.

The harsh reality is that the current economic climate makes it nearly impossible to provide raises to every non-profit worker out there. Keep in mind though, that even in good economic times non-profits are still competing for funding. Salary will continue to be a hot-topic in the non-profit world but I think additional benefits like paid parking or floating holidays could significantly boost non-profiteer morale.

I would question why you so adamantly never expect to make a six-figure salary "EVER." That's a pretty strong statement!

I am a woman in my early 40s with a degree from a good university; lots of experience in nonprofits, for-profits; and serving individual clients. I am single and childless. If I had children, that would certainly not decrease the amount of money I would need to earn, and I'm a firm believer in being an EQUAL or close to equal breadwinner. I have no inheritance coming.

It is disheartening to hear women - and it is always women - hew so tightly to the evident but unspoken expectation that we not be self-sufficient, financially successful individuals in society but that we should care for others while setting ourselves up for either dependence on a man or an impoverished, vulnerable retirement - or both.

Inability to command a high salary is one thing. Accepting the insult of an industry that pays us badly as a matter of course is quite another. I have lost all patience for organizations that HYPOCRITICALLY claim to promote a healthy, empowered society while perpetuating a sexist mentality that the corporate sector wouldn't dare trying to get away with.

I think one difficulty right now is that nobody can get hired, so its hard to make an argument that a higher salary would be more "competitive" because for any given person working in any sector, the odds that they can leave their job for a better paying one are pretty slim. I'm hoping to get paid from a non-profit I'm starting, and the total salary would be in the $25,000 range to start, which is super low, but is more than double what I make now working fast food (which, considering that I have a degree, is supposedly way below my paygrade, but given that there are no jobs to be found, I couldn't possibly get a better salary).

I have been thinking about this so much lately! Thanks for this great post, Rosetta - as always!

I am transitioning from a part-time worker and full-time student to a full-time worker very soon. I have been applying and interviewing at several organizations. I'm experiencing difficulty in being an informed advocate for my compensation package in conversations with potential employers.

Rosetta, do you or your readers know of a great resource for this information (beyond NYC, Jersey, & DC)? I live in Indianapolis.

Here's what I normally do:
1. Find out what the top executives are paid by reviewing the 990.
2. Determine the organization's prestige, age, size, and subsector (factors that I think often influence the pay rate).
3. Talk with professional contacts about potential salary ranges.
4. Find data for comparable job titles/positions using online salary calculators (that usually cater to for-profits).
5. Assess my own relevant experience and education.

What else should I be doing? Any and all help would be much appreciated!

I think you're doing plenty! Most folks don't do that much research at the outset, so kudos to you for being so proactive.

Okay, Rosetta. Thanks for the reply!

After two years with no pay increases (due to cuts in funding), I have become tired of my non-profit salary. I've been hanging in there because of outstanding benefits (employer paid health and dental insurance, sufficient paid sick and vacation time, etc.), however I have an extremely low salary for someone with a master's degree. One can't help but wonder how much more a non-profit employee would be paid if they transitioned to the for-profit world.

I agree that most of the time what you paid for your grad degree won't be offset by your nonprofit salary, but I have to challenge you a bit on your either/or conclusion. you may be able to find a better paying job in a different position at a different organization. For example, I know people who have gone from program to fundraising with a huge bump up in salary. You needn't be so quick to leave the sector altogether!

Just gotta say that you shouldn't be paid for your degree but for your experience and your performance. A degree is a piece of paper that can be earned but at least sometimes is not and it does not necessarily translate to better work performance or an ability to do a job better than someone who has worked in the field while that person was in school. That said the pay rate is low and not getting better for either performance or degree from what I've seen. Also gone without even a Cola raise for years and that alone makes me have to rethink what I'm doing. If I keep getting asked to do more and more and get paid essentially less and less if nothing else it definitely makes me check my dedication to the nonprofit, especially as nothing is adressed around the issue.

Ah, the nonprofit salary discussion. It's one that will never go away (nor should it). It's always a tricky one, too, because very few offer retirement plans, great insurance benefits, or stock options, three bulwarks of the corporate world that increase one's true earnings.

That, plus standards of living and tax rates varying across the country, make a true comparison somewhat difficult.

Yes, the comparisons ARE difficult. And I wonder if that's the only reason that nonprofit workers believe our salaries to be low? Because we know that others are earning more than us? It's all relative and we're always comparing ourselves to another sector.

I am an AmeriCorps*VISTA volunteer, and our "salary"/ stipend is set at the poverty level to give us insight into the constituency we are serving. I obviously did not enter a year of service for the money, but for the benefits - fulfilling work, end-of-term educational awards, and a full year of networking and professional development opportunities.

I see myself continuing to work in the non-profit sector. This year has taught me that, regardless of the salary, you can find a way to live. The "human factor" cannot be rivaled outside the non-profit sector, and the value placed on collaborative work is refreshing.

That's interesting, I didn't know that was the reason the Americorps stipend was so low. Gives me a whole different perspective on how money, or the lack of it, can be a part of the mission of an organization. I think some groups, especially faith-based ones, may have low salaries as a part of the culture they want to create, but I'm not sure it's always communicated as such to their employees.

I thought the Americorp stipend was low because it's supposed to be a year of volunteer service. It's not a permanent job although it may lead to staff position.

LeeAnn is right. That's why the stipend changes based on the poverty level of the community you're living in. Example - AmeriCorps members make more in NYC than they do in Oklahoma City. Why? Because the poverty levels are different.

If you look at the VISTA mission from back in the 60s, you can see why this is still an integral part of the AmeriCorps program. While providing the works and services that our members give is a huge part of AmeriCorps (all branches), connecting people is also a huge part. And part of that connection is getting a glimpse of the life that the people we are hoping to help live with everyday. Sort of like a real life example of walk a mile in their shoes.

Well considering I just started a new job about 5 weeks ago, I am pretty okay with my salary. What I am making now is a considerable jump up from my previous salary so that makes me feel good. But where I am now, I am not entirely sure if I'm "satisfied" with it. I surely make enough to be comfortable, especially since I am single with no children. However, what should make one comfortable during this economy is a whole lot more than what it used to be.

I am now learning how to expand myself skill sets and become an expert in various fields. I believe that people should have multiple streams of income. If all goes well, I will be able to supplement my income by the summer.

Like teachers, I think those who work in non-profits get a bad rap. Society assumes that because we work in "feel good" industries, that should be enough. Sometimes it's not. I work in non-profit because I believe the work that I am doing and preparing for is part of my calling. However, I have to live too. So, maybe non-profit organizations will catch up with the rest of the well-paid fields.

That's great that you're making more in your current position than you did before! I think even if you make a "lateral" move into another nonprofit role, it helps you feel like you got a promotion if the pay is better. I feel you on the being single with no kids front. I'm blessed to be able to make the money I do now, but if I were to add just one kid to the mix, it would be really challenging.