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A stipend is a payment given to individuals instead of a salary, often for short-term work like internships or fellowships. It may come with benefits like housing or meals, and is typically not based on hourly work. Stipends are often paid monthly or as a lump sum, and are not intended as a long-term payment solution. Nonprofits may also provide stipends to workers.
A stipend is a form of payment given to individuals in lieu of wages or salary. It is usually only meant to cover living expenses, and is often awarded to individuals who are participating in an internship, apprenticeship, postgraduate work, or a fellowship, to name just a few. A stipend is typically a fairly low salary, and is typically not based on hourly work, but rather a predetermined set of factors related to the type and amount of work that needs to be completed in a period of time.
When someone is working for a graduate program or in an internship, for example, a monetary stipend may be awarded to allow the individual to devote the necessary time to this work without needing to find additional work. Usually, a stipend will also come along with other benefits that make it acceptable to receive a lower salary. These benefits may include living arrangements, a certain number of meals per day, college credit, or additional knowledge and work experience gained in a specific field that may be beneficial to add to a resume.
A stipend may also be paid less frequently than a regular paycheck; Often stipends are given once a month, or even as a lump sum once a semester. For this reason, it is important that people who receive stipends take care in managing the money and make sure that it lasts the entire period of time for which it is intended. Also, this payment method is generally only used for people who will be working for a short period of time, such as a semester, six months, or a year, although the exact time period can of course vary. It is not intended to be a long-term payment solution, except in some cases for members of the clergy.
Nonprofit organizations may also provide a stipend to workers, although many of these individuals are simply volunteers. A stipend is generally a guaranteed sum while the individual has the apprenticeship or internship, provided he or she is completing the work as agreed. Again, it is often not based on actual hours worked, but rather on the stated requirements needed to complete the job within a certain period of time. If this work is completed, then it is reasonable to assume that the intern put in an acceptable number of hours to receive the stipend.
Smart Asset.
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