Budget Like Your Team Matters: Rethinking Nonprofit Culture
Let’s be honest—most people don’t get excited about budgeting. And fundraising often feels like a stress-inducing necessity rather than a strategic opportunity. But here’s the truth: budgeting and fundraising aren’t just about numbers—they’re about people.
A healthy nonprofit culture starts with how you treat your team. And that begins with how you budget, plan, and raise the money needed to support them well.
1. Pay People Well—Not Just Enough to Get By
Nonprofit workers deserve more than survival wages. Your team isn’t in this work for the money—but that doesn’t mean they shouldn’t be paid fairly.
Budgeting and fundraising with intention allows your organization to provide living wages or, better yet, comfortable wages—so your staff can thrive, not struggle.
A living wage covers the basic necessities—housing, food, healthcare, transportation, and other essentials—without relying on public assistance. It ensures a worker can survive, but not necessarily save or thrive.
A comfortable wage, on the other hand, goes a step further. It allows for stability, modest savings, occasional extras (like vacations or hobbies), and reduces financial stress. In short, it lets people live well, not just get by.
I learned this the hard way.
When I was running All Bikes Welcome, I grossly underpaid myself for nearly three years. It wasn’t because I didn’t care about sustainability—it was because I believed the work mattered so much that I could just push through. But that kind of self-sacrifice led to chronic burnout and serious health issues.
You can love your mission deeply and still deserve to be well-paid. Trust me—I’ve lived the alternative, and it’s not sustainable.
If you’re unsure how much to budget for salaries, here are two helpful resources:
Also, the image below, created by Visual Capitalist on Voronoi, provides a quick reference of Smart Asset’s 2024 study on comfortable wages.
A single adult now needs between $79K and $116K per year to live comfortably in the U.S., depending on location. These figures reflect the income required to cover a 50/30/20 budget—50% for necessities, 30% for discretionary spending, and 20% for savings. For nonprofit leaders, this reinforces why budgeting for living and comfortable wages is essential to a healthy organizational culture.
Image Source: Visual Capitalist on Voronoi
2. Budget for Cost of Living Adjustments (COLA)
Inflation is real, and so is the rising cost of housing, food, gas, and healthcare. If your team’s salary hasn’t changed in years, they’re effectively making less money than when they started.
Even modest COLA increases show your team that you value them and are committed to their long-term wellbeing. It’s a tangible way to live out your values—and one you can build into your budget every single year.
After historically low inflation in the 2010s, rates spiked dramatically in 2021 and 2022—reaching 7% and 6.5% respectively—before gradually declining. Despite this drop, inflation remains elevated compared to pre-2020 levels, reinforcing the need for nonprofits to account for cost of living adjustments in their budgets.
Source: US Inflation Calculator
3. Skip the Pizza Party—Prioritize Real Wellness
We’ve all seen it: A team that’s overworked and underpaid, handed a pizza party (or an escape room 🤮) as a thank-you instead of the time off they truly need.
Instead of spending your limited budget on “perks” like team meals and retreats that are unlikely to increase productivity, consider investing in quarterly mental health days, minimum PTO requirements, and flexible schedules.
✨ If your staff can’t afford to take time off because their workload is too overwhelming, that’s not a PTO issue—it’s a capacity issue.
I once worked at an organization that scheduled us to death—back-to-back meetings, appreciation lunches, endless team-building activities. Ironically, employee apathy was rampant.
I found myself constantly overwhelmed, and I could never enjoy the so-called "perks" because I was thinking about all the work I’d have to cram in afterward. It taught me an important lesson: if people don’t have time or energy to rest, no amount of catered meals will make them feel appreciated.
4. Budget for Parental Leave, Sick Time, and Flexibility—Even if You’re Small
You are never too grassroots to start budgeting for benefits like parental leave, paid sick time, and mental health support. Trust me, it’s much easier to budget in from the start than it is to build in later.
You may not be able to offer a full benefits package yet—but starting to build these into your budget sets the foundation for the organization you want to become.
If you want to grow into a fully functional nonprofit that attracts and retains incredible people, you need to plan for it now. According to The Time-Off Report from Calendar Labs, employees who were the happiest at work took an average of 15 PTO days in 2023.
Even in my own consulting business—where I’m currently my only employee—I budget for PTO.
Because if the day comes when I need to care for a sick loved one or raise a new baby, why shouldn’t I have those same benefits I advocate for others? Planning for wellbeing isn't just a perk—it's a foundation.
5. Allocate Savings to Support Leadership and Staff
When grant disbursements are delayed or donor goals fall short, the stress often lands squarely on leadership. And when leadership is in survival mode, it trickles down to the whole team.
Budgeting for savings and reserves isn’t just about financial stability—it’s about protecting your team’s peace of mind. It ensures that when things go sideways (and they will), your organization can respond with confidence instead of chaos.
I feel this one deeply—because I’ve seen it firsthand in my clients.
When there’s no savings cushion, the stress is palpable. On many days, it’s debilitating. And it seeps into every corner of the organization. Everyone is “barely hanging on,” which is not a good or healthy place from which to serve others, nor is it a solid foundation for healthy work culture.
Having a reserve fund isn’t just about stability—it’s about giving your leadership and your team room to breathe.
Final Thoughts
Everything I’m sharing in this blog isn’t just theory—it’s lived experience. I’ve made these mistakes, felt the burnout, and witnessed the toll it takes on individuals and entire teams.
That’s why I’m so committed to helping grassroots nonprofits budget and fundraise in ways that support the people doing the work—not just the programs on paper.
💬 What would your organization’s culture look like if your budget reflected your values?
Want expert guidance on improving your grant strategy? At Beckie Irvin Consulting and Research, LLC, we help grassroots nonprofits develop stronger grant proposals, research funding opportunities, and build sustainable fundraising plans. Book a consultation today, and let’s get your organization the funding it deserves!
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