How to Pay Yourself from Your Nonprofit for Beginners - 2024

Starting a nonprofit often involves a mix of passion and sacrifice, but it's essential to ensure that your dedication doesn't leave you financially vulnerable. In this YouTube video, we'll guide you through the crucial steps to pay yourself as the Executive Director of a nonprofit, even when resources are limited.

Join us as we dive into practical strategies for managing your nonprofit's finances while ensuring fair compensation for your hard work:

Point 1 - Open two bank accounts: Learn why separating personal and organizational finances is key to maintaining clarity and accountability.

Point 2 - Set your Target Allocation Percentages: Discover how to establish realistic salary goals based on your nonprofit's revenue and expenses.

Point 3 - Move Money Monthly: Explore a simple yet effective method for transferring funds from your nonprofit's account to your personal account on a consistent basis.

Point 4 - Save up 6 months before taking: Find out why building a financial safety net is crucial before initiating salary withdrawals.

Point 5 - Keep padding to give yourself a raise: Learn how to adjust your salary over time to reflect the growth and success of your nonprofit.

Whether you're a budding nonprofit founder or a seasoned leader looking to optimize your organization's financial management, this video offers practical advice to help you navigate the complexities of compensating yourself while staying true to your mission. Tune in to empower yourself with the knowledge and tools needed to build a sustainable future for both you and your nonprofit.
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PRACTICAL AND APPROACHABLE NONPROFIT STRATEGY THAT HELPS ORGANIZATIONS GET CLEAR, GET FOCUSED, and GET FUNDING SO THEY CAN BE IMPACTFUL without being overwhelmed by all the traditional nonprofit advice. Nonprofits don’t have to be grueling and Executive Directors shouldn’t be constantly exhausted. It takes courage to step out in faith and follow a calling and I believe the world needs the solution your nonprofit offers. Running a thriving nonprofit takes leadership, strategy, program evaluation and intentional fundraising but it doesn’t need to be overwhelming. Everything you do can be maximized and leveraged to accomplish your mission in one solid, cohesive way. Stop working for a nonprofit and start working For Purpose, On Purpose.

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[forpurposelive]

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[EmeraldEmpire-zx]

How much should you be setting aside for taxes if you end up transitioning to W2 employees instead of issuing stipend/1099 contractor ?

[PhilyB]

Thanks for shedding light on this Rebecca, much needed. Can you also shed some light on what channels through which to disburse compensation? For instance should one pay via direct deposit from salary account to employee account? Or utilize a payroll system?

[KAMALJOHNSONNETWORK]

I have a question. Does the salary get tax cause a non profit is tax exempt? Thanks for the info

[MrTwinlord]

This is just a “how to manage cashflow”. Not how to pay yourself. The legal structure is the important part here…