Starting a Nonprofit: How to Pay Yourself
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- Опубліковано 5 вер 2024
- If you are starting a nonprofit organization, you may be wondering how to pay yourself. You may be confused about how a nonprofit founder can transition into a paid position. In this video, I am sharing four things to do/consider when transitioning to become a staff. Starting a nonprofit is hard enough to do, and you need the funding to pay yourself and staff to make sure the organization will be around for years to come.
Watch the end of the video at 15:55 where I share a few ideas about revenue strategies to cover your salary/to pay yourself.
Here's IRS info on differences between employees and independent contractors: www.irs.gov/ne...
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Thank you queen. I'm starting a non profit with every intention to make change at a global scale.
It's been a year, how's it going?
@@TheMaternityMogul it takes time bb
❤️💪🏾👑 Same here 💚💙💜
I’m doing the same thing. Congratulations 🎉🎉🎉🎉
@@krazyspartanodstupdates?
It's amazing how many people beat-around-the-bush when it comes to this topic. Thank you so much!
You’re very welcome!
So much information I think I’m in wayyyy over my head with my nonprofit
It is a lot, but if you pace yourself and get a strong team, it's doable!
This is phenomenal information, simply broke down. Thank you for your time and energy with this!!!
You're welcome, thank you for watching!
Thank you for this video. Gonna start me a non profit and needed more insight on all aspects and thanks again
Thanks for watching!
Hello! Thank you for sharing your expertise and experience in this video! So appreciated. ❤❤❤
Thank you so much for watching!!
I'm on my way thanks to you. You have provided me with valuable and thought provoking information.
That warms my heart to hear!!! I'm glad I can help. Are there any other topics you're interested in?
Can you do a topic on where to get all the contracts/agreements needed?
Hi, can you clarify which contracts or agreements you’re referencing?
Your content. Has. Been a. Big. Help
I’m so glad! Thank you for watching 🤗
Thank you! very valuable information and straight to the point❤️
You’re welcome, thank you for watching!
Ms.Tiffany is so kind. I really enjoyed the work book. I felt so much more confident after talking to her.
You’re so sweet, thank you for your support!
@@BossonaBudget How do I buy your book?
Hi, it’s a digital workbook and it’s here: rebrand.ly/npstartupworkbook
This channel is amazing
Thank you for watching!
I watched a few of your videos today and I am now a subscriber!!!
You are a blessing!
May you continue to be blessed and successful for giving away such great information for FREE! 🙏🏾🙏🏾
Thank you so much for subscribing! It really helps
Thank you. This was amazing.
Thanks so much for watching!
Such a God send thank you
Thanks so much for watching!
I have wanted to start a non profit for years. I have 2 questions:
1. Why do cpas and others told me that having a for profit business. (I currently have some for profit businesses, looks sketchy to the IRS if you then start a non profit organization? They worry about mis use of money between a for profit and non profit and said it may make me a target for audits. I can't find any information about this.
2. I had a meeting with my new CPA for my business taxes. I asked him about starting a non profit. He told me that I will have a very hard time finding a CPA who will file a non profit and if I do find one they will charge me thousands even if it's a 0.00 tax return. This was discouraging.
Hi, I’m not a CPA and without knowing the details it’s hard to respond but it sounds like they’re worried about conflict of interest. However, there are scenarios where you can involve your business with the nonprofit as long as your business isn’t benefiting from the relationship and your business isn’t the sole donor (if you’re a public charity). There are consultants who will charge less than a CPA and also if you’re knowledgeable enough you can do it yourself- but I would still have a professional review your application before you submit it.
Thank you.
Thanks for watching!
Thank you, Boss on a Budget!
Thank you for this great content! It is super helpful as we get our non profit startup!
I’m glad it was helpful!
Really great info thank you very much.
Thank you for watching!
I love your videos, new listener !!
Thanks so much for watching!!!
You videos are so great. I just started following you 2 days ago and listening to your videos. I have a question. Do you have to have a certain amount of people on the board?
Hi there! Thanks so much for watching and following me. Your state will likely have a required minimum and the IRS likes to see at least 3
Thank you for sharing
Thank you for watching!
Thank you so much for this valuable info
No problem!
Thank you thank you thank you!
Great info. thank you
Thanks for watching! Have you started your nonprofit yet?
This vid is fantastic!
Thanks for watching!
please help to the Destitute children
This was great! Thank you! Question.. how much do you put to the side for reserves or savings? For each sale or donation.
It depends on the nonprofit. Some may set aside a set amount each mont, like 10%. It also depends on how much you’re trying to save and timing. It’s probably less labor intensive if you save a lump sum (percentage of total income in the month) than per donation. Also it gets tricky if certain donations are restricted so make sure it aligns with your accounting, if that makes sense.
Great info👍🏾
thank you 💕 girl
You're welcome 😊
Can the whole board transfer over to be employees to get paid if it's a small board? Or is that not allowed
That’s a complicated question- but I will say….follow the right processes for hiring like you would any employee. When it comes to the chief executive officer, you also need to have a process for selecting and compensating that person.
How can I start a non-profit and become the first recipient? I am trying to get to Envita for cancer treatment and once I have raised what I need, I will keep the charity running, of course, and help others in my similar situation. Thank you
Hi, if you are collecting donations for a nonprofit, then you arent supposed to conduct activities for your personal benefit. It might be better to do a campaign for yourself (make sure you understand the tax implications).
Can you be listed on the board and as staff?
Generally, no but every nonprofit is different. I would need to know the specifics to give a definitive answer.
We are a homeless non-profit and love this video but need some help
I’m confused. People just starting don’t have a board of people. So couldn’t you just start the organization and assign yourself as executive director of the organization. Salary is based on whether or not it’s reasonable. If you are just starting and doing everything yourself then shouldn’t you be paying yourself a reasonable salary.
You have to put board members on the IRS application, so people do start with a board. Now whether those boards are functioning is another story. It's not good governance to assign yourself and set your own salary. You put yourself at risk.
@@BossonaBudget so you are saying that a person can’t start their own non profit without finding other people who want to work? Why would they NEED other people to do something they believe in. I completely understand having a board long term for an established non profit, I have no debate about that. I’m just referring to a new nonprofit. For example, Texas law is you must have 3 directors IF your organization is not member managed. You absolutely do have the right to manage your organization without a board. You are only at risk if you are not being responsible and are misappropriating funds.
Sidenote: Please don’t take this as me trying to downplay your video. It was very informative, I’m just elaborating on that one topic. ✨
@@sincerelyfrancis thanks for the disclaimer lol. I'm saying that a nonprofit is an independent corporation (if you incorporate), and a board is needed to make decisions for the corporation. Your board may have 1 person, it may have 10, it may have 50 - but you need a board. Who is on that board is up to the leadership of the organization at the time. You put yourself at risk of losing your 501c3 status (if you go that route) if the IRS believes that you're not practicing good governance. They may not approve your application if there is only 1 board member on the application. If you are seeking grant funding, a foundation that asks for your board list will absolutely question if there's only 1 board member because how can you protect the interests of the organization and manage conflicts of interest, ensure checks and balances with funding if only one person is on the board. As a new organization, strategically you need people on your board to help with startup fundraising. Without a board in the beginning it makes it 10x harder to grow.
@@BossonaBudget I agree, but most of this goes back to good business practices. If the organization is ran properly it’s no risk. Of course as you grow you want and need more people.
Well. I’m starting mine next week, I’ll report back on if having a board of 1 person stopped me or not lol I do plan to establish a board with more people, but I’m very selective so it will take some time. I’m not giving random people access to something so important to me.
@sincerelyfrancis I'm looking yo do the same thing as well can I ask what you want to do?
What is the minimum % of what the business makes has to go to the non profit?
Hi, I don’t understand. Are you talking about a separate business?
What happens when the nonprofit is brand new and the board and everything have not been made yet?
I think I answered this in the last comment
so pretty much it would be better to start a for profit subsidiary to handle the money in pay your self through that instead
I can’t say what would be better for you but there are options whether you’re paid by a nonprofit or another business structure.
Are there cases where the executive director can be fired or removed? I'd hate to work that hard just to get kicked off my own organization.
Hi, yes that’s possible. I did a video about it: Can You Vote Out a Nonprofit Founder?
ua-cam.com/video/XBZXE4ugqYg/v-deo.html
Is it possible to be the founder of the nonprofit AND LLC-Can the nonprofit pay the LLC Because the LLC is proving a service?
If you are the founder of a nonprofit and the LLC and you're using the nonprofit to pay yourself under the LLC that's a conflict and your board needs to handle that and you shouldn't be part of that decision. But this is general information -consult a lawyer for help with conflicts of interest
So what forms do I need to file where to actually do this legally??
Forms for which process? Starting a nonprofit?
@@BossonaBudget For hiring myself. For example, the W-2 (or W-4?) as an employer, and the 1040 as an employee? I'm not even sure what is needed to the SSA and IRS. And as a 501(c)3 there's some exemptions that we have the right to as employers? Honestly, there's so much contradicting information out there it's scary.
Wait so if I start this organization imma still have ppl above me? Can I be my own board?
Hi 👋 new sub here a question board of directors (are these the ones on the board ?) or the officers? Like u have to have directors and officers?
HI! I don't know how I missed this comment :) The officers are the special roles like President, Treasurer, Secretary, etc. Everyone on the board is a director, but keep in mind that every state may have different terminology. They may be called a board of trustees, board members, etc.
Can you unionized in a nonprofit structure?
Hi, that's not my area of expertise but I'm sure you can. There are nonprofits that have unions but they tend to be the bigger ones.
Incredibly helpful.. Thank you so much for all the information. I took notes.
If I’m the founder could I become a board member and pay myself from the earnings? I have 3 people
Total who want to become members I assume we can all be paid from
What we sell?
Did you find out the answer to this
Hi, the video breaks this down. Board is not the same as staff. Staff earn their income based on their work. Board members are usually volunteers. You should be careful about compensating board members and some states will not allow it.
FYI- I just responded.
where do I find your books
Here you go: rebrand.ly/bossproducts
Does the process also go for nonprofits that are just now being built? When I declare that im on the board will I have to either not be on the board of my own business to make money? I'm not sure how that works because from your example it seems as if you're talking about a non-profit that has already been in business for a while.
I’m not sure exactly what you mean by the process but generally it’s the same. The difference with an established nonprofit is that you have the financial resources to pay someone in the Executive Director position. If you’re a startup Exec Director you’re more than likely a volunteer starting out, but that separation between staff and board can still be modeled even from the very beginning
Non profit sounds complicated!
It really can be!
do you offer mentor services
I have a private community that opens 4 times a year that helps people with fundraising. It's closing on May 25th. Here's the link: rebrand.ly/moneyonamission
Can you be a board member on more than one 501c3?
Yes, you can. Some orgs may have stipulations against it in their bylaws or board member agreements, but generally, yes.
Hello and good afternoon I hope you are well. I have started a charity in England uk where we aim to offer counselling to people on benefits/low incomes. Is there anyway that might fund this ? Thank you
Hi, are you asking is it a viable idea for funding?
How do I set up a meeting with you?
My apologies just seeing this. Here's a link to my calendar: calendly.com/bossonabudget/30min
Is it possible to speak to you personally?
Yes, here's my calendar link: calendly.com/bossonabudget/30min
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OWNERS OF A COMPANY SHOULD BE EXEMPT AS LONG AS THEY PAY TAXES ????>
Hi, I don’t understand your question.
Thank you for the video but really wish you would have gotten to the point. 13 minutes of this was a waste of time.
Thanks for your feedback, but it was not a waste of time. Context is extremely important when it comes to nonprofits. There are rarely simple answers.
Thank you.
No problem, thank you for watching!
What happens when the nonprofit is brand new and the board and everything have not been made yet?
One of the first steps is compiling a board, so you would need one before you proceed with paying yourself. Getting to that point to be paid takes time anyway.
Thank you