This study empirically examines the relationship between rewards and employee’s motivation in the non-profit organizations
of Pakistan. Employees of three organizations (PERRA, World Vision and SUNGI Development Foundation) working in Khyber
Pakhtonkhuwa province of Pakistan were taken as sample of the study. Self designed questionnaire was used for data collection. 125
questionnaires were distributed and 107 were returned, hence the response rate was 85.6%. The data was analyzed using the techniques
of rank correlation coefficient and multiple regression analysis. All the findings were tested at 0.01 and 0.05 level of significance. The
result concludes that there is a direct relationship between extrinsic rewards and the employee’s motivation. However, intrinsic rewards
found an insignificant impact on employee motivation. Key words: Rewards, Employee motivation, Non-Profit Organization (NGO),
Correlation, Regression, KPK province, Pakistan.