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2. Under what circumstances should nonprofits offer compensation that is competitive with what for-profit employers are...

2. Under what circumstances should nonprofits offer compensation that is competitive with what for-profit employers are offering for the same position? When, if ever, is it all right to pay less?

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Answer #1

Under the following circumstances, non-profit organizations may pay competitive compensation:

1. This organization has a good financial backup

2. They have something significant to accomplish from the hired employee and they need him badly.

3. This organization is part of a big profitable firm.

It is alright to pay less in the following case:

1. You can't support competitive compensation.

2. Somebody is working part time, or for charitable work and not for salary.

3. You use all your revenue to purchase material needed for the charitable work.

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