01/16/2026
FYI:
Nonprofits can and do receive money through donations, grants, program income, contracts, and fundraising and it’s not illegal for them to pay staff or executives. In fact, most nonprofits need paid employees just like any other organization to run programs, manage fundraising, and stay operational. 
Here’s the part that many people don’t understand:
Nonprofits do NOT exist to enrich insiders.
Under federal tax law, a nonprofit must be organized and operated for a charitable purpose
Salaries ARE allowed — but they must be reasonable.
The IRS says nonprofit boards are responsible for setting “reasonable and not excessive” compensation that reflects what similar organizations pay in the same region and field. It’s not a blank check. 
If compensation is too high, the IRS can impose significant penalties — including excise taxes on the person paid and even penalties gia law (and nonprofit governance rules) requires conflict-of-interest oversight, good recordkeeping, and fiduciary duty — which means boards must act in the nonprofit’s best interest, not personal gain. 
Here’s the reality check 👇
Large nonprofits with big budgets often pay full-time CEOs and staff, because they run multi-million-dollar programs that require professional management.
Small nonprofits, especially grassroots and community-led ones, often struggle to pay any salary — relying on volunteers and lean teams.
Some people unfairly judge small nonprofits for not having big salaries — but in reality, big salaries in big nonprofits often reflect the work, complexity, compliance demands, and legal expectations of running large services.
Nonprofits can pay staff legally.
They must justify that compensation.
They cannot use nonprofit funds for personal enrichment.
And they must operate transparently under federal IRS rules and Georgia nonprofit law.
If you want smaller nonprofits to thrive, the answer isn’t to shame legal compensation it’s to support equity, transparency, and capacity-building across the nonprofit sector.