“Whoever is kind to the poor lends to the Lord, and He will reward them for what they have done.” Proverbs 19:17

What Constitutes Reasonable Compensation in Charitable Work

Protecting Purpose in Nonprofit Work

Determining reasonable compensation by charitable service organizations requires careful reflection on purpose and principle. Under the early church model of sacrificial giving, compensation for those serving in charitable roles was minimal, if provided at all. This approach reflected a deep commitment to stewardship and service rather than personal gain. Leaders and workers were supported sufficiently to meet basic needs, ensuring that the vast majority of resources were directed toward assisting those in need rather than sustaining administrative overhead.

Mercy Ships

Mercy Ships operates under a distinct service model. The physicians and most volunteers who serve aboard its hospital ships receive no salary. Instead, they are responsible for raising the financial support necessary to cover their living expenses, as well as travel to and from the ship, often through contributions from their home communities. At the same time, executive leadership and key administrative personnel are compensated at levels considered appropriate for managing a large, complex, international organization with a substantial annual budget. This structure seeks to ensure professional operational oversight while directing the majority of donor contributions toward patient care and program services. As a result, donors can give with confidence that their contributions are used primarily to benefit the individuals and communities being served.

True service isn’t a career—it’s a mission.

Today, charitable organizations are often viewed as employment opportunities capable of providing a salary and supporting a family. This perspective reverses the original intent of charitable work. When compensation and career advancement become the driving forces, the foundational mission of service can be overshadowed.

The charitable sector is vulnerable to mismanagement and, at times, corruption. Regulatory oversight is too often not exercised decisively or applied, and the responsibility increasingly falls to donors to educate themselves about the organizations they choose to support.

Prudent donors should educate themselves on IRS Form 990, the publicly available annual return filed by tax-exempt organizations. Houses of worship are exempt from filing the form.  Understanding where a charity’s funds originate, how those funds are allocated, and what proportion is directed toward program services versus administrative and fundraising expenses is essential to making informed and responsible giving decisions.  On houses of worship, consider making inquiries on the use of donations if a Form 990 is not filed; houses of worship should have financial statements that could be made available to a prospective donor.

 

JOLEE-JAFFA FOUNDATION FOR GOOD, INC is a nonprofit organization recognized as tax-exempt under Section 501(c)(3) of the Internal Revenue Code. EIN: 41-3393578.

We are a 100% volunteer led organization. No board member, officer, or volunteer receives compensation of any kind. Donations are used exclusively to support those we serve, with only minimal administrative and operational expenses—such as insurance, compliance, or essential services—paid when necessary to responsibly carry out our mission.

All expenses are reviewed and approved by the volunteer board and are fully disclosed.