Paying People To Work With Your Project
If you will be paying someone $2,000 or more in a calendar year to do work for your project, they must be properly classified by SGF. If they meet the criteria of an employee, they must be onboarded as such with SGF before they start work. If they are a contractor, we require a contract that is reviewed and signed by Social Good Fund if the total amount they will earn is $2000+ in a calendar year, cumulatively, prior to starting work (previously the amount was $600 before January 1, 2026)
If you are planning to hire someone, please review the below information and contact us before they begin work or you commit to paying them. If they will be paid $2,000 or more in a calendar year, SGF will need to make the final decision as to how workers must be classified under the applicable laws. Below are the categories we may use to classify workers.
If you would like to pay someone, and you don’t think they fall into one of the above categories, we will most likely need to classify them as an employee. However, please contact us at socialgood@socialgoodfund.org if you have questions.
Note on Stipends: In certain cases, it is appropriate to pay someone a stipend for their participation in your program. It is generally not appropriate to pay someone who has performed work via stipend. See section on stipends.
Note on Volunteers: Volunteers are by definition unpaid and cannot be compensated for their work. See the volunteer section for more details.
Note on Project Directors: Project Directors, if compensated, must be compensated as employees. Project Directors do not qualify as Independent Contractors (nor as Fellows or Interns). Project Directors may also serve as volunteers (not compensated).
Note on Undocumented Workers: Unfortunately, SGF is not able to pay undocumented workers.
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