Money for the Rest of Us

My Money Blog has a good post about 403(b)s.  Specifically he points to 403(b)wise.com a website all about– you guessed it– 403(b)s.

Ask Annie at Fortune answers a question about a career change into the non-profit world. The short article is worth the read if you’re interested in the non-profit sector.

I found the statistic about the growth of non-profits particularly interesting:

Between 2002 and 2004, the latest years for which figures are available, nonprofit job growth outpaced that of the private sector in 46 out of 50 states, generating 5.3% more new jobs while job creation in the private sector fell by 0.2%.

I’ve put together this list of eight ways to get more money, benefits, experience, value and more from your non-profit:

1. Understand Your Non-Profit

An underlying factor in getting more value from your non-profit is understanding what type of non-profit it is. Many people don’t understand how different non-profits can be—there are large, corporate feeling non-profits and there are small, jeans-only non-profits. Some non-profits are activist organizations, while others are research organizations. Unless you understand the type of non-profit you work at you won’t be able to maximize your pay, benefits, and other things you might want.

2. Consult

As a non-profit employee you have expertise in something that many other non-profits need. A lot of start-up non-profits need a part time grant writer, website designer, or project manager because either they don’t have enough money or enough work to hire someone full-time. Check Craigslist, Idealist, and Guru for consulting opportunities.

3. Contribute to your 403(b)

Contribute to your 403(b) plan (if your employer offers one). A 403(b) plan is a retirement plan offered to employees of tax-exempt organizations and is very similar to a 401(k) plan. See this article for more information about 403(b)s. If your non-profit doesn’t offer a 403(b) plan ask for one. (See Tip 8 below)

4. Get a Tax Credit

Chances are you don’t earn a lot as a non-profit employee. If you earn very little find out what tax-credits you qualify for. One such tax credit is for single filers with an AGI of under $25,000, married filing jointly under $50,000, and head of household under $37,500. If you fit into any of these categories you can get a tax credit for up 50% of your contributions to a retirement account (including a Roth IRA). The maximum credit is $2000. See pages 70 and 71 of Publication 590 and complete Form 8880. There are some restrictions to this credit—including that full-time students don’t qualify—so read carefully.

5. The Value of Liking What You Do

Non-profit employees are happier with their overall work experience than other employees. According to a recent study by the Brookings Institution, 97% of non-profit employees surveyed feel good about the work their organization does. Believing in what you do cannot be translated into a dollar amount.

6. Don’t feel bad Asking for a Raise (or if you’re not-yet employed- negotiating your salary)

I know several people who have “felt bad” asking for a raise or negotiating their salaries because they work for an activist non-profit and they don’t want to take the non-profit’s money. This is just dumb.

7. Take on More Responsibility

One of the best things about working at a non-profit is the ability to take on more responsibility. Because non-profits are notoriously short-staffed there is almost always another role that you can fill. Maybe you have always wanted to write a grant, coordinate an event, or advocate legislation. When you work at a non-profit it you can get involved in additional areas of work. This is free training. The value of this additional experience cannot be monetized and will translate to future jobs.

8. If there is something you want ASK

If there is something else that you want from your non-profit then ask for it. Maybe your kitchen needs a toast-r-oven or you want to get a new lamp for your office. These are small things, but they can make a big difference. It doesn’t hurt to ask.

Even better: do a little leg-work before you ask. I know a few people at a non-profit where they don’t get Metrocheks (public-transportation cards). These friends always talk how they want Metrocheks, but no one has yet printed out the simple online form and completed the parts that they are able to on their own. I would bet that if they filled out this form and gave it to their Executive Director she would send the form in. Sometimes asking and taken the first step are all that are needed to get what you want. One of my favorite posts is from Ramit over at I Will Teach You to Be Rich. He writes:

But Ramit…You say $6.00 is nothing. Maybe that’s true for your fancy-pants technology companies, but I work for a small/poor nonprofit and they can’t spare any money. You are wrong!! Everything you say may be true, but my response is simple: Have you asked? We love to make assumptions, but the truth is that you have to measure the $6.00 in terms of how much your nonprofit would lose if you quit (recruiting costs, training costs, costs for stupid mistakes of the new person, etc) versus your paltry $6/day. Maybe you’re right. Maybe I’m right. Who knows? Certainly not you until you ask.

Get the most from working at a non profit by taking a few steps to maximize your benefits.

On Monday I will be posting 7 financial money tips for non-profit employees. I’ve been working on this for some time now, so please check back.