How do nonprofit employees get paid?

• Annual salaries

Many nonprofit organizations offer their employees annual salaries, similar to for-profit companies. The salaries for nonprofit employees are determined by their role, experience, level of responsibility, and the nonprofit's budget. Some nonprofits choose to use a paper check method for payment, while many others have shifted to the direct deposit method.

• Hourly wages

Some nonprofit organizations might also use the hourly wage structure to pay their employees. This means that the employee gets a set amount of money for each hour they work. This structure is most common for part-time and temporary employees of nonprofits.

Similar to salaries, compensation is typically received by paper check or through direct deposit.

• Stipends

There are some nonprofit organizations that offer their employees stipends as a form of payment. A stipend is a specific and fixed amount of money that is paid to an employee to cover certain expenses, such as housing and commuting. Employees that receive stipends might also receive a salary or an hourly wage from the nonprofit they work for.

• Nonprofit volunteer work

Finally, there are some nonprofit organizations that rely to a great degree on volunteer workers. These individuals do a great service to a nonprofit by volunteering their time in support of the organization's services and programs. Volunteers do not get paid monetarily, however, many still receive other benefits, such as:

• Training

• Experience

• Recognition

• The value of placing the volunteer work on their resume

• A sense of purpose and personal fulfillment