Why Paying Competitive Salaries Is Mission-Critical for Nonprofits
Why Paying Competitive Salaries Is Mission-Critical for Nonprofits
When we think about nonprofit work, words like passion, mission, and dedication often come to mind. But one word that can make nonprofit professionals uncomfortable is salary.
The idea of paying nonprofit employees a competitive wage sometimes feels at odds with the mission. If dollars go to payroll, dollars aren’t going to mission. But here’s the truth: fair compensation is one of the most important investments a nonprofit can make—not just in its staff, but in the success of its mission.
The Problem With the "Martyrdom" Mindset
Too often, nonprofit work is seen as a labor of love—something people should do out of the goodness of their hearts, with little concern for compensation. This mindset might seem noble, but it’s dangerous.
When nonprofits underpay their staff, they send a subtle but powerful message: “The mission matters, but the people who carry it out don’t.” This attitude can lead to burnout, turnover, and a loss of talented individuals who could otherwise make a meaningful impact.
I was once involved with a nonprofit that had the most financially successful event ever. As I was building and running the event, I had about four dollars in my checking account and had to use my credit card for groceries. The talk after the event was about what the nonprofit could buy with “all that money.” No mention was made of paying a living wage to the sole employee.
Would we expect a doctor or engineer to work for a fraction of their worth because they’re passionate about their field? Of course not. Yet nonprofit professionals are often held to this unrealistic standard.
Why Competitive Salaries Are Good for the Mission
Nonprofits exist to create change—to solve problems, improve lives, and build a better world. But a mission is only as strong as the people working to achieve it. Paying competitive salaries supports the mission in several key ways:
1. Attracting and Retaining Talent
Nonprofits compete for talent just like for-profit companies do. Offering fair and competitive wages helps attract skilled professionals who can elevate the organization’s work. And retaining those employees ensures continuity, stability, and a depth of institutional knowledge that is invaluable over time.
2. Increasing Organizational Capacity
Underpaid and overworked staff are less effective. When employees are paid fairly, they’re able to focus fully on their work without the stress of financial insecurity. This leads to better outcomes for the organization and the communities it serves.
3. Reinforcing the Value of the Mission
When nonprofits invest in their people, they show that the mission matters. After all, if an organization undervalues its team, why should donors or stakeholders see it differently? Fair compensation communicates professionalism, commitment, and sustainability.
Addressing the Fear of Donor Scrutiny
A common concern for nonprofit leaders is how donors will react to higher salaries. Transparency is key to addressing this. Nonprofits can proactively share:
Salary benchmarking data: Show how your pay scales align with industry standards.
The connection to the mission: Explain how competitive salaries help attract top talent, leading to better outcomes.
Your commitment to sustainability: Highlight that fair pay is part of building a strong, long-lasting organization.
Most donors want to see their contributions make a difference. A stable, well-compensated team is essential to delivering that impact.
The Real Cost of Underpaying Staff
The cost of underpaying employees is often hidden but significant. High turnover means frequent hiring and training, which drains time and resources. Burnout reduces productivity and creativity. And when talented professionals leave the nonprofit sector altogether, the entire field suffers.
By contrast, competitive salaries build a strong foundation for long-term success. Employees who feel valued and supported are more likely to stay, innovate, and go above and beyond for the mission.
Changing the Narrative Around Nonprofit Salaries
It’s time to move away from the outdated notion that nonprofit work requires personal sacrifice. Instead, let’s embrace the idea that nonprofit professionals deserve to be paid fairly for their skills, expertise, and dedication.
Paying competitive salaries is not a betrayal of the mission—it’s an essential part of achieving it. When nonprofits invest in their people, they invest in their ability to create real, lasting change.
So the next time someone questions the salaries of nonprofit employees, remind them: it’s not about the money. It’s about the mission—and the people who make it possible.
Yes to all of this. Thank you for amplifying the need to treat nonprofit workers humanely during a funding crisis. We need quality civil society leaders more than ever.