You lead a nonprofit, you already know: your people are your greatest asset, and often your largest expense. In our recent Master’s Circle Community Learning Lab, we explored what it really means to “work on” your organization, not just “in” it. The big takeaway? One of the Three Positions to Master are Employee Costs. It's more than crunching numbers; it’s about building teams that multiply your mission.
For most nonprofits, employee costs made up of salaries, benefits, and payroll taxes, are the biggest slice of the budget. In our session, leaders shared that this can be 50%, 70%, or even more of total expenses. If you’re not managing this well, you’re missing the most significant lever for financial health and mission impact.
But here’s the twist: it’s not just about hiring people to “do the work.” The most sustainable organizations hire (and empower) people who build teams. As Denise shared, “If you can put people into leadership who have a mind to build teams, you’re going to duplicate, grow, and sustain much better.” Whether you’re hiring staff or cultivating volunteers, look for those who can multiply your impact through others.
Not every organization is ready to hire a big team, and that’s okay. Many start with all volunteers. But even as you grow, don’t lose sight of the value of a strong volunteer culture. Volunteers expand your reach, bring new energy, and help manage financial risk. Their time is a donation to your mission, and the value can be significant (the Independent Sector estimates volunteer time at $34.79/hour.)
We also discussed the challenges of setting salaries and benefits, especially in startups or organizations with variable cash flow. The key is to plan for a sustainable base, avoid commission-based fundraising compensation (which is considered unethical in the nonprofit world), and get creative with benefits when traditional health insurance isn’t feasible.
For more on setting salaries and compensation structures, check out Terisa’s blog post here: What is a Fair Salary in a Nonprofit?
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As your organization grows, your staffing strategy should evolve too. Are you hiring people to do tasks, or to develop others? Are you investing in leadership pipelines and building a culture where volunteers and staff thrive together? The organizations that double their impact are the ones that build teams...intentionally, strategically, and with an eye on both mission and sustainability.
Take Action
If your organization doubled in impact, how would your staffing, volunteer teams, or leadership need to change?
Building teams isn’t just a budget line, it’s the heart of your mission’s future.
Adapted from The Financially Thriving Non-Profit, master course.
Lesson 2.1 Three Positions to Master as a Financially Thriving Non-Profit
Win for Texas Girls & Boys Ranch
We are honored to partner with Texas Girls & Boys Ranch (TXGBR) as they pursue their mission of caring for children across Texas. Over the past year, we’ve had the privilege of working alongside their dedicated team; providing monthly financial reviews, budget analysis, and hands-on support. Our role has been to equip their board and leadership with clear, actionable financial data, and to support the professional growth of their accounting staff. We’re grateful for the trust TXGBR has placed in us, and we celebrate their commitment to strong stewardship, transparency, and long-term sustainability. It’s a joy to serve as part of their team and to witness the impact they make every day. You can learn more about their mission here.
Connection Group and Community Learning Lab
We've really enjoyed connecting with you all in the Master's Circle Community! If you haven't plugged into the new Master’s Circle Community Connection Group yet, make sure you check-in and join us, here! It’s your go-to space for updates, meaningful connections, and all the details on our upcoming Learning Lab.
Thursday, March 26th 1pm CST - via Zoom
At Thrive, being Growth-Minded means we’re committed to helping you and your mission move forward, not just maintain the status quo. We believe every nonprofit has untapped potential, and our role is to come alongside you as strategic partners with expertise, and practical tools that fuel your next level of impact. Whether you’re navigating new challenges, scaling your programs, or dreaming bigger for your community, we’re here to support your vision for growth. Your wins are our wins, and we celebrate every step you take toward sustainability, innovation, and mission fulfillment.
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