Do Non-Profit Directors Make Money?

When most people think of non-profit jobs, they don’t immediately think of money. However, working in the non-profit sector can be one of the most lucrative jobs available. This is why you see so many people from government and political organizations moving straight into the non-profit sector.

The conventional idea of non-profits not having money is wrong. Non-profits are different than the corporate world in that they are not designed to make a profit. They serve a community: homeless, immigrant, children, MICA, or some other group that is unable to take care of themselves.

The on the ground staff, the case workers and other people who are doing the labor, are not paid huge salaries. This is why, for instance, California and other areas such as NYC, are finding it hard to secure case workers to assist with their social service work.

However, once you rise to the level of a non-profit director, you are no longer working with the day to day caseload. Your work consists of working at a higher level, dealing with funders and government grants.

Let’s review some more of the questions below.

More Than You Think!

The money can be quite impressive in the non-profit sector. Depending on where you work, non-profit directors can make mid six figures. In most cases, the starting salary for a director is low six figures.

There are many reasons why non-profit directors make such high salaries. First, the job requires a very particular skill: networking.

Most non-profit directors are either former political workers or else they come from other non-profits. The job does not require direct work with the public, or for that matter much work with the client base of the non profit. What is required is the ability to secure funding in the form of government grants, corporate gifts, and other donations.

Most non-profits receive ample public support in the form of government funding. However, a successful non-profit director will be able to leverage connections within government and other non-profit organizations.

A good non-profit director will be able to network and make strong connections with government programs, corporate philanthropy groups, and other public services that fund programs.

For instance, if a Non-Profit in NYC that deals with MICA or Violent Ex-Offenders is receiving $50 million a year from Government grants (a small number for a NYC non-profit) then brining in a well connected Program Director might be well worth the while.

A Program Director who can network and secure an extra $20 million in funding (a reasonable amount inf a city like NYC) then there is no reason why they would not garner a mid six figure salary.

In major cities, non-profit organizations are major businesses. Just because they are non profitable, it does not mean that the people who run them are not well compensated. Here’s an example of a non-profit in NYC and how lucrative it is for those involved.

Moving from Government work to Non-Profit Work

One of the easiest transitions is from government work into the non-profit sector. This is because Non-Profits are funded by taxpayer funds. These funds are all obtained by government sources. The people who are best at securing larger government grants are the people who have worked in government.

It’s not uncommon to find someone moving straight from an elected position into a leadership role for a non-profit.

Along with the knowledge of how to operate in the government sector, governmental employees have access to elected officials.

For this reason, there are many people who move between government roles and non-profit roles.

There is a similar crossover from the corporate world, though it is not as common. Oftentimes the roles at the director level go to people who have ties to corporations because of their ability to secure corporate philanthropy. 

What is more common are people who transition from public office to non-profit leadership, for instance Christina Quinn—who moved from political work to a non-profit that deals with homelessness in NYC. In this case, Quinn’s salary is quite large.

Corporate Jumping to Non-Profit Work

It is less common to find someone who works in a corporate environment leave their job to work in the non-profit sector.

Corporate work requires a much different skill set. The pay is usually higher at the top levels of corporate America. The only reason someone would leave a corporate role to work in a non-profit is if they land a director level role.

Many times, these roles require much less actual work than is required in corporate America. The hours are much more attractive (many non-profit directors work completely remotely—even pre-pandemic—and are given company cars, hotels, and expensive paid trips to DC and other cities for conferences.

The major reason a non-profit would hire a person who worked in the corporate sector is if they see a potential benefit. This might be in the form of future lucrative collaborations between the non-profit and the company.

For instance, if a non-profit that works with homeless services was to hire a person who worked with a major real estate developer, then it might land the non-profit a lucrative contract that would involve converting apartments into shelter or temporary housing units for the city.

Partnerships between corporate and non-profit organizations are always tied into government incentives, however, so it’s more common to see someone come from the political sector. This way they have a connection in government that can help steer the funding and contracts the way of the non-profit.

Where The Money Comes From?

In the world of non-profits, money comes from the government and corporate philanthropy. Non-profits do not generate money. There is no income or revenue because they work in a different, non-traditional way.

Non-profits receive money from the government, who receive it from the tax payer. This money is than allocated to nonprofits to use for different programs.

Non-profits have to write grants and apply for funding. This is where a good non-profit director can come in handy.

The budget for a non-profit depends on how successful they are at lobbying for money from the government. The role of a director at a non-profit is quite simple: generate money and keep grants flowing to keep the non-profit afloat.

The expenses of a non-profit, even the smallest one, can easily run into the tens of millions a year. The exact numbers are always available, or rather should always be available if the non-profit is operating legally, on the non-profits website.

How To Land A Director Job: 3 Ways It’s Done

For the most part, you can’t just apply for a job as the director of a non-profit. The jobs are too in demand and require things that are too specific. It’s not as if you can graduate from school with a degree in social work or business administration and apply for the job.

A non-profit organization will want to hire someone who has a very specific skill set, and most importantly the ability to find sources of funding, i.e. grants, corporate donations, and other workable solutions to monetary problems.

So, here are the ways in which one gets hired to be a director at  non-profit.

• Networking

As we’ve discussed in previous sections, most of the job of a director involves networking. Part of this process involves soliciting money from governments and corporations. This is where networking comes in. If you’re someone who is returning from a government role, or if you’re leaving a corporate role (either retiring or else seeking something slower and more laid back) then landing a job at a non-profit can be just what you’re looking for. This role requires connections and networking, however, as it’s not something that you apply for in the conventional sense. It’s something that you get by knowing the people on the executive board.

• Executive Recruiters & Headhunters

Sometimes a non-profit needs to hire a director, but they don’t have anyone on the horizon. If the role can’t be filled by a person who is connected to the board by some prior connection, then the organization often will go to a recruiting firm. The typical situation is that the recruiting firm will be contracted to conduct an executive search for a director.

These roles require recruiters to connect with executives at other non-profits (there is a lot of movement between non-profits) and also in corporate roles. The recruiters than headhunt the people who they think fit the job specifications the best.

In instances like this, it’s not sufficent to only have a degree or some experience, the recrutier will want to check references and make sure that the person is capable of delivering on expected goals.

• Being Appointed

Another common method for people to get a job as a non-profit director is to be appointed. Sometimes there are instances where the person will work as a VP of a Non-Profit and when the current director leaves to either reenter politics, or return, then the opening will become available to a current employer.

This is less common than the other methods, however, as the role of VP is more of an administrative role and has less to deal with securing funding and connecting with outside agency sources of financial support.

Lower level roles such as that of Case Managers have virtually little crossover with the higher up adminstrative work found in Non-Profits.