Just about every nonprofit organization starts its life staffed with volunteers who do everything the organization needs from “soup to nuts.” As the organization grows, it will begin to hire paid staff to provide continuity and take over responsibilities from volunteers. For every organization this point is different and depending on the organization’s needs and resources will happen in a different way. A rule of thumb seems to be that organizations look to hire their first executive director somewhere around a budget of $50,000 to $75,000.
Once this transition begins to occur, the organization needs to gain a new set of expertise related to human resource management. This will include addressing issues such as contracts, payroll generation, benefits (medical insurance, vacation, retirement,
etc.), worker’s compensation, personnel policies, evaluation, and reporting systems. For detailed information on many of these topics see
Free Management Library and The Nonprofit FAQ.
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