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Wage increase at a Non-Profit

5K views 10 replies 9 participants last post by  swoop_ds 
#1 ·
Hello,

I have been working at a non-profit organization (Christian summer camp) for a few months now, using it as the 'backbone' of my income (I get the other half from a business that I am trying to grow). The pay is lousy ($30000 in rural SK), the benefits are okay (group medical/dental/insurance/disability, 6% pension match). I knew this when I joined and am okay with it since I don't derive all of my income from the job. Apparently there hasn't been a salary increase in 4 years or more (that's how long our contracted accountant has been there and she can't think of the last increase) so we're essentially making less than the previous staff.

There are three fulltimers:
The Director - a new hire as well, about two months more than me
The Office Manager - Me
The Maintenance Guy - 22 year old guy who lives in a company owned cabin and has no dependants

All of us, except for me in some ways as I just wanted to quit my previous 'rat race' day job, are doing the job because we are very passionate about the cause. I don't think that this should have a whole lot to do with it. Frankly, the director who has a wife and two kids, makes essentially the same as me and is slowly drowning with his current salary. The business isn't doing that well but things seem to be turning around since we both started. I guess we're giving it a fresh start? Anyways, the board(volunteers) would ultimately have to approve salary/benefit increases with the Director being the one who would approach them with the request. I've mentionned it a bit to the director but I think he feels kind of strange 'giving himself a raise', despite needing it badly.

What is the most diplomatic way to proceed? I want wage increases for my own selfishness but also know that the others certainly need them, even more so than me.

My remedy would be to increase wages by %10 annually for 3 years and then level out at 3%-5% thereafter since they'd be at more reasonable levels. I just don't understand how they expect to attract new staff if we ever left or how they expect to keep us for the long term. I'll probably only stay until my other business 'hopefully' takes off, but we'll see, as I really do like working there.

Any thoughts?

-Dave

P.S. sorry for all of the posts as of late, I've just been on a personal finance mission as of late!
 
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#2 ·
Well, I've been involved with a similar business for the past several years and must say you are actually very lucky to be bringing in that kind of a salary and benefits. Putting aside that housing in rural SK is much cheaper than cities, the group I'm involved in watches its money very closely and does not have anything to pay employees. Even for our various "capital projects" we have to get funding from grants. We do have a bank account that is our slush fund to at least do bare bones type operations and maintenance but that's about it. And I don't think we're alone either. If you're an office mgr at such a place in rural SK bringing in $30K I think you should count your blessings. I seriously doubt the board is going to approve those increases you describe.

No worries about the posts - you are asking good questions and it's good to take control of your finances. I personally think that once you pass a minimum income threshold it becomes more a question of managing what you have than increasing what you have.

Besides, where else in your area can you bring in a steady salary of $30K?
 
#4 ·
Thanks for the replies. In my opinion the company could afford to do this. Before myself and the Director came along, there was a lot of 'silly' spending. For example, one summer, ~$40K was spent on temporary staff housing for two months. . . to remedy this , the following fall, they bought a cabin for $20K and did $10K of renos and now we have a permanent staff housing building. It would have been cheaper to rent apartments for two months than bring in temporary housing! Another example would be $4K spent on a terrible activity when that money could have funded multiple activities that would go over better (archery, outdoor sports, perhaps more canoes, etc).

This spending has been reigned in as of late. In my opinion, the previous staff were wonderful people but didn't have much sense in them financially. In any event, things seem to be going better financially and there is even room, imho, in the salary budget as we stopped bringing in the part time office assistant daily as I can do her tasks plus mine without batting an eye. (she was an elderly lady who was more than happy to not be there as much anymore anyways as she was just helping out for something to do). We are also hiring less summer staff as in previous years they twiddled their thumbs since there were too many of them. So I think that there is money, but whether the board thinks that that is better spent elsewhere is completely their decision.

Also, while I agree it isn't a terrible income for rural Sask, I would really have no problem as a young man finding better paying employment. Not to mention that the city isn't much of a commute(what I used to do before this job). However, the job is pretty great and has a really positive atmosphere, so I won't be leaving anytime soon! Also, it is hard to quantify the fact that I feel I'm doing my part and helping out a good cause.
 
#5 ·
Several thoughts.

You are probably underpaid. But you and the Director both accepted this wage when you took the jobs only a few months ago. I think any employer of new staff would look askance at a sudden request for 10% annual increases for 3 years. To put it bluntly, if you thought the pay was too low you should have told the Board you couldn't start at that pay level, or else walked away.

The Director isn't "gving himself" a raise. He is asking the Board for a raise for himself and his staff. It is part of the Director's job to do this, and to make the business case to the Board, based in part on some of the arguments you have presented here.

Volunteer boards of non-profits are not usually noted for being generous in the matter of staff wages. And the fact that both of you took the jobs recently at the current pay levels may be perceived by the Board as evidence that they are not paying below "market rate" for such work.
 
#6 ·
As a general rule I'd expect workers at local non-profits to be relatively 'underpaid' if evaluated purely on financial terms, but to self-select into their job as a result of being passionate about the position or organization in question. If you don't care about the organization, or if you are not wealthy enough to be able to take below market wages, you shouldn't be in the position.

I think we've been told that the organization in question has some financial difficulties, but there's been no mention of whether or not they have had trouble recruiting staff. The fact that you and your boss took jobs at the current wages suggests that the wage/lifestyle returns of working at your camp are desirable. It's not clear that you can afford to participate.
 
#7 ·
I have a few friends in the non-profit sector, they are the most overworked and underpaid people I personally know. Some of them eventually burnout, quit, took on better paying and better career jobs, then volunteer their time to support their cause.

You can consider the same.
 
#9 ·
Its probably different in your job market, but I know that the salaries at non-profits in Toronto are shockingly low, in part because they are temporary jobs/resume builders for a lot of the people who work there. E.g. There is a long line of people willing to fill the spot. I worked a few summers at a similar camp for an "honorarium" of $40/week + room & board... it was basically a volunteer position.
 
#10 ·
I agree with most of what is mentioned above. My take would be that you need to hold on for a while longer, and for a specific "event" to credibly precipitate the discussion. Such an event could be a review of the finances and a noting by the Board that the organization has indeed turned around. Or the preparation of next year's budget. Or satisfactory conclusion of next summer's season.

As a former nonprofit Board member, I would indeed not look terribly favorably at 2 new staff members asking for a raise soon after cheerfully accepting a specific salary. I would however look quite favorably at said staff members coming to me with a nuanced message making it clear a) they were happy working for the nonprofit, b) were having trouble imagining themselves continuing to be able to afford working for us in the long term at the current salary, and c) demonstrating management acumen making it clear they were more than worth a reasonable incremental increase.

Bottom line is that the fact that the salary has not been increased for 4 years is an irrelevant argument; a positively worded but factual and credible story that an incremental expense is needed to sustain a positive trajectory for the organization is a highly relevant one.
 
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