Building a strong team is the difference between a community foundation that merely distributes grants and one that genuinely catalyzes local change. As you scale operations, hiring the right people in the right roles becomes critical—and so does understanding what each position actually costs. This guide walks you through the key hires you'll need and realistic budget expectations.
The Core Positions You'll Need
Most community foundations operate with a lean structure, especially in the early stages. Your foundation's growth determines which roles take priority, but certain positions are foundational.
Executive Director is non-negotiable. This person drives strategy, manages the board, handles donor relations, and oversees all operations. Expect to budget $70,000–$120,000 annually for a mid-sized foundation (managing $10–50 million in assets), depending on your region and the candidate's nonprofit experience. In larger metros or foundations managing $100+ million, directors command $130,000–$200,000+.
Grants Manager or Program Officer handles grantee relationships, administers grant cycles, and monitors impact reporting. Budget $50,000–$75,000 for this role. This hire accelerates your ability to process applications, conduct site visits, and actually support nonprofits beyond just cutting checks.
Development Director focuses on donor cultivation, major gift solicitation, and fundraising strategy. If you're building an endowment or seeking individual contributions beyond corporate partners, this role pays for itself quickly. Typical range: $55,000–$85,000.
Finance/Operations Manager manages accounting, compliance, board reporting, and day-to-day administration. This isn't optional—foundations face real regulatory requirements. Budget $45,000–$65,000.
When to Hire Part-Time vs. Full-Time
Not every position needs to be full-time from day one. Many community foundations start with:
- Executive Director (full-time, always)
- Part-time Program Officer (0.5–0.75 FTE) or contractor managing grants
- Shared or outsourced bookkeeping (often $2,000–$4,000/month) until you reach $50+ million in assets
- Part-time Development support (0.5 FTE) if your fundraising is still building
As you hit revenue milestones—particularly when your grantmaking exceeds $1–2 million annually or your endowment grows—convert those part-time roles to full-time positions.
Budget Realities & Hidden Costs
Salary is just the starting point. Factor in:
- Payroll taxes & benefits: Add 25–35% to salary (FICA, unemployment insurance, workers' comp)
- Health insurance: $4,000–$8,000 per employee annually (after tax efficiency)
- Retirement plans: Many foundations offer SIMPLE IRA or 403(b) matching (3–5% of salary)
- Professional development: $1,500–$3,000 per employee annually for training, conferences, memberships
- Recruitment costs: Budget $3,000–$8,000 per hire (recruiter fees, background checks, onboarding)
A $70,000 salary actually costs closer to $95,000–$105,000 fully loaded.
Hiring for Grant Capacity vs. Overhead
The key tension: foundations want to maximize grant dollars, not overhead. But here's the reality—well-staffed foundations disburse more in grants because they can manage more donors, process applications efficiently, and provide meaningful grantee support.
A useful benchmark: operating costs should not exceed 15–20% of your annual grantmaking. If you're distributing $2 million annually, aim for $300,000–$400,000 in total operating expenses. Hire accordingly.
Building Remote-Friendly Teams
Geographic hiring expands your talent pool significantly. Many community foundations now hire part-time program officers or development staff remotely, reducing salary pressure by 10–15% compared to in-office equivalents in high-cost metros. This is especially effective for grants management and donor stewardship roles.
Where to Find & Vet Candidates
Look for candidates with nonprofit, community development, or foundation experience. Use specialized job boards like Idealist.org, CharityJobs, or Foundation Center resources. Local nonprofit networks often yield strong referrals—and referrals tend to have lower turnover.
When listing open positions, using a platform like Mercoly helps you reach qualified candidates actively seeking foundation roles while also establishing your foundation's presence among other service providers and potential partners in your ecosystem.
Frequently Asked Questions
Q: Should we hire an executive director before we have a permanent office? Start with a part-time executive director or consultant (often $30,000–$50,000 annually) until you've established your grant program and have $5+ million in committed assets. At that point, full-time hiring makes financial sense.
Q: What if we can't afford a full-time development director? Partner with a freelance fundraising consultant ($75–$150/hour, 10–15 hours monthly) until you're distributing $1.5+ million annually; then hire development staff.
Q: How do we retain staff in nonprofits with tight budgets? Offer flexibility (remote work, flex schedules), professional development funds, and authentic mission alignment over raw salary. Communicate impact clearly—staff who see their work changing communities stay longer.
Ready to build your team? List your foundation's job openings and staffing needs on Mercoly to connect with qualified nonprofit professionals in your region.