How to Pay Your Nonprofit Staff

Payroll for your nonprofit. Oh, your head’s hurting already, isn’t it? But it’s an important topic you’ve got questions about, so we’re going to battle through the pain and explore what it looks like to pay people in your nonprofit.
📚 ADDITIONAL RESOURCES:
•VIDEO: Form 990: The Public Window into Your Nonprofit • Form 990: The Public W...
•VIDEO: 6 Operating Policies Your Nonprofit Must Have • 6 Operating Policies Y...
•VIDEO: Can Related People Be on a Nonprofit Board Together? • Can Related People Be ...
•ARTICLE: How to Pay Your Nonprofit’s Staff bit.ly/3xPpjuQ
•ARTICLE: Nonprofit Executive Compensation bit.ly/3Ip1eQB
🏆 YOUR NEXT STEP:
•Fill out this form for a FREE consultation on how to start a nonprofit: bit.ly/3Tu9nYE
•Register for Fundraising TV: www.501c3.org/fundraising-tv/
•Download the FREE eBook “10 Things You Need to Know Before Starting a Nonprofit” bit.ly/3XhFag0
0:00 Introduction
1:28 Employee vs. Contractor
2:17 Reasonable Compensation
3:33 Due Diligence
4:46 Arms-Length Decision Making
5:41 Conclusion

[@FoundationGroup]

If you need help filing for IRS 501(c)(3) status, we’d love to help. Fill out the form at bit.ly/3i6rFxz or give us a call at 888-361-9445.

[@KimoraElizabeth007]

Very Helpful THANK YOU

[@FoundationGroup]

Glad it helped! Thanks for watching.

[@sourcemousabitcoinmining7935]

THANKS FOR THE SMOOTH TIPS

[@cotyandjessicabailey4180]

Great information. Keep it up. 👍

[@nelsonquerales413]

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[@waynecmontgomery]

Hey Greg, great video very informative, You forgot to tell nonprofit operators that they do NOT have to pay FUTA or (Federal Unemployment Taxes) once they obtain 501(c)(3) status. You also failed to tell nonprofit operators their nonprofits will pay a penalty for salaries over $1 million dollars that includes pass-through operated, controlled, or owned companies that belong to the nonprofit. I am assuming you are a Tennessee Vol football fan. My dad lived by SEC football. I hope all is well my friend.

[@gregmcray]

Hey, Wayne! Yep, all true stuff...especially the part about Tennessee football. Go Vols!

[@waynecmontgomery]

@@gregmcray Go Vols !!! You should do a brief short on how the CTA or the Corporate Transparency Act will affect nonprofits who do NOT have 501 (c) tax-exempt status they will have to file reports with FinCen starting in 2025 or 2024 if they are a new organization "if" they do NOT have some kind of 501(c) exemption.

[@SoutheastIndianaYouthBasketbal]

If we are a very small non-profit but want to compensate coaches/referees, etc. with a type of stipend is that acceptable and would we issue a 1099 even if it's a very low amount such as less than $500?

[@FoundationGroup]

This is where things go sideways quickly. "Stipend" is a word people use when they don't want to say the word "payroll". They do this thinking that somehow that word magically strips the transaction of any necessary treatment according to payroll tax rules. Please exercise caution here. Unless these referees and coaches are billing you for their services at a fee they determine, then they're your employees. Regardless of amount, you should be paying them via W2, not 1099.

[@gillharjinder6485]

How I could ask how much non profit organization is paying to there employees.

[@FoundationGroup]

Their Form 990 will have expense line items for payroll and benefits. Also, any officers or directors who are also employees will have their salaries directly listed on Form 990. You can always ask a nonprofit you support to see a copy of their filed Form 990 for a given year, or search for it yourself at IRS.gov/EO .