by Becca Samuel

As a nonprofit management student, it can be really easy to feel intimidated by the conversations about the work I hope to do one day. Whether that’s the idea that I will never make a certain amount of money or I will never be able to move up in my career, but I’m here to shed some light on what’s really happening in the sector.

The nonprofit sector is full of misconceptions about salary, the work, and their purpose. The following article has lots of good information about the myths of the nonprofit sector, salary information, and how to advocate for yourself when it comes to your finances. I’m going to break down the article into three blogs with my main takeaways, so I hope you’ll follow along!

Chapter 1: An Introduction to Nonprofit Salaries

Myths About the Nonprofit Sector, Debunked

From the notion that “No one makes any money in the nonprofit sector” to the belief that “The nonprofit sector is for private-sector rejects,” we’re shedding light on the facts and debunking the fiction to learn what sets the nonprofit sector apart.

Myth #1. “No one makes any money in the nonprofit”

Nonprofits rely on both paid staff and volunteers. Contrary to popular belief, nonprofits can make a profit, the IRS just has restrictions on how they can use that profit. In other words, they can’t just use their profit to line the pockets of their highest employees or board members. Profits must go back into the programming and operations that serve the organization’s mission.

“Nonprofit” refers to the 501(c) tax code in the United States. Nonprofits don’t have any stockholders receiving dividends but it is possible and legal for nonprofit employees to receive bonuses at the end of the year. According to Independent Sector, in 2022 nonprofits contributed $1.4 billion to the U.S. economy.

Myth #2. “No upward mobility.”

The nonprofit sector provides many people with a lifetime of exciting work. As a young person, I am looking forward to the different ways I can expand my career both in level and expertise as a nonprofit employee. The sector offers young people more leadership and growth opportunities than other sectors. In 2022, nonprofit employees made up 6.5 percent of the American workforce.

Myth #3. “Nonprofit employees only do direct service work.”

Some of the most recognizable nonprofits are direct service organizations, like mentoring programs, shelters, and food pantries. That said, organizations also have needs for accountants, technology experts, human resources staff, research assistants, engineers, and more. There are a variety of roles a nonprofit employee can hold that do not rely on direct service. In other words, not every nonprofit professional is a frontline, on-the-ground worker.

Understanding Employee Benefits

While the salaries of the nonprofit sector may not have salaries that rival the private sector, there are a variety of benefits that level the employee package playing field.

Child- and elder-care benefits

Nonprofits often have benefit options like hybrid work schedules, location flexibility, voluntary reduced time, job sharing, and more that can support employees who support others. Nonprofit organizations are often willing to have these conversations with their employees.

Compensatory time

While employers generally can’t offer overtime pay to there staff, many do offer comp time, so every hour worked outside of the contract agreement can be taken off during another part of the week you would typically work.

Family-friendly benefits

Nonprofit employers may offer staff opportunities to work remotely, create their own work schedules, and/or receive paid leave to care for sick family members, a new baby, or newly adopted child—opportunities that can support staff who have families at home.

Health insurance

Health insurance is an important consideration before committing to any job. While nonprofits may not always be able to provide health insurance, they are often willing to provide education for employees to get marketplace insurance or offer some kind of compensation like a health care bonus at the beginning of the year.

Professional development programs

One of my favorite parts about the nonprofit sector is the opportunity for continued learning. Many nonprofits support employees seeking out further experiences that add to our knowledge like courses, workshops, conferences, and certifications. Whether or not your organization can afford to pay for it, many support employees’ efforts to invest in their professional development.

Vacation time (or paid time off)

The nonprofit sector tends to have more flexible benefits than it’s private and public counterparts. While there are some restrictions, organizations are often open to vacation days, paid time off (PTO), and paid holidays. This is an important conversation to have before signing any employee contract.

For more information on the myths and benefits within the nonprofit sector as well as how to negotiate your salary in an interview, be sure to check out this link.