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Pay Rates in Nonprofit OrganizationsCompensation in Nonprofit Organizations, 16th Edition - 2003PUBLISHED: October 2003 Summary of the 2,387-page Compensation in Nonprofit Organizations, 16th Edition - 2003 survey report of 131 benchmark jobs from Abbott, Langer & Associates, Inc. The following describes the highest paid job characteristics, the national median total cash compensation for 46 benchmark jobs, and the factors affecting salary (Level of Supervisory/Managerial Responsibility, Type of Organization, Number of Employees, Annual Budget, Scope of Organization, and Geographic Area).
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Who is the highest-paid employee in the nonprofit sector? A composite representing such an individual was drawn by Dr. Steven Langer, using data from his recent survey of over 105,000 employees in 131 benchmark jobs reported by 2,646 nonprofit organizations of widely-differing types.
Copies of the complete three-volume, 2,387-page report entitled Compensation in Nonprofit Organizations, 16th Edition - 2003 can be purchased for $225.00 (for Volume I - Professional Societies and Trade Associations), $275.00 (for Volume II - All Other Organizations), and $325.00 (for both Volumes I and II) through our On-Line Order Form or from Abbott, Langer & Associates, Inc., Dept. NET, 548 First St., Crete, IL 60417 (telephone 708/672-4200; fax 708/672-4674). State/regional editions for California, Connecticut, Illinois, Massachusetts, the Mid-Atlantic states (Washington, DC, Delaware, Maryland, and Virginia), New York/New Jersey, Ohio, and Pennsylvania are available for $210.00. Also available is Compensation of Nonprofit Chief Executive Officers - 2003 ($75.00); Fringe Benefits and Working Conditions in Nonprofit Organizations, 5th Edition ($250.00); and Special Nonprofit Policies & Practices, 2003 ($250.00).
The composite executive with the highest annual income in a nonprofit organization in the U.S. is a Chief Executive Officer of an international, national, or state organization with 25 or more employees and an annual budget of $10,000,000 or more. This composite individual is probably with a merchandising trade association, a health care providing organization, a banking/financial trade association, manufacturing trade association, a health care trade association, an artistic/cultural/literary organization, an educational providing organization, an educational, society, or a medical/dental society. He or she is located in or near Arlington/Alexandria/Reston, New York City, Washington (DC), Sacramento, Austin, Columbus (OH), Chicago, or Madison, or outside the metropolitan areas studied in Pennsylvania or Virginia. While the median income of nonprofit CEOs is $81,000, some of the highest-paid Chief Executive Officers make well over $600,000. The median incomes of some of the other 130 benchmark jobs for which data were reported in the survey report are:
Naturally, these nation-wide rates vary among the many regions, states, and metropolitan areas and numerous types of nonprofit organizations [ranging from advocacy/consumer organizations through chambers of commerce, hospitals/nursing homes, professional societies (by type), social welfare organizations, trade associations (by type), etc.] surveyed, as well as on the basis of the other demographic variables studied. Obviously, such benchmark jobs as Chief Legal Officer, Director of Government Relations, Field Staff Director, and Chief Economist occur primarily in the larger and/or better-financed nonprofit organizations. The apparent anomalies in the list above tend to "wash out" when consideration is given to the type and size of nonprofit organization and the other demographic variables studied, as is possible with the entire report. Level of Supervisory/Managerial Responsibility This factor is a good predictor of the compensation of CEOs in the nonprofit sector; however, it is, of course, identical to total number of employees in the organization for CEOs. This factor has greater relevance in dealing with jobs like Director of Administration, Director of Government Relations, Field Staff Director, etc. Type of Organization Median annual compensation of CEOs is highest in health & welfare-related professional societies ($153,867), business-related professional societies ($124,000), sheltered workshop organizations ($100,160), foundations ($100,000), health-care providing organizations ($94,126), and youth organizations ($90,000). The median annual compensation of CEOs is lowest in arts centers/councils/service organizations ($52,500), United Way/Community Chests ($57,500), performing arts organizations ($60,000), day care organizations ($61,550), and aging/senior citizen organizations ($63,250). The CEOs of the remaining types of nonprofit organizations for which pay data are reported for CEOs [advocacy/consumer organizations; artistic/cultural/literary organizations; chambers of commerce/associations of commerce & industry; charitable organizations; community centers/YMCA; developmental disabilities care providing organizations; economic development organizations; educational providing organizations; employment/training organizations; environmental/natural resources organizations; health-related/mental health-related providing organizations; housing/shelter organizations; membership organizations; mental-health care providing organizations; museums/art institutes/historical societies; nonprofit trade associations; religious organizations; and social service/social welfare organizations] all had median incomes between $88,500 and $66,653. In many cases, the type and size of organization tend to be related. However, discussing income vs. two other variables simultaneously requires more space than is appropriate here; this treatment must be left to the complete report. Number of Employees This factor is an excellent predictor of compensation among CEOs in nonprofit organizations. Median income increases quite regularly from $54,580 for CEOs in nonprofit organizations with under five employees to $166,285 for those in organizations with 500 to 999 employees. Annual Budget This factor is an even better predictor of CEO compensation in nonprofit organizations. CEOs in organizations with annual budgets of $50 million to $99.9 million have a median income of $192,500, 340% higher than the median income of $43,750 received by CEOs in nonprofit organizations with annual budgets of under $250,000. As with the previous variable, the type and annual budget of organizations tend to be related. Again, treating income vs. two other variables simultaneously requires more space than is appropriate here; this treatment must also be left to the complete report. Scope of Organization International and national organizations provide the highest median annual income to CEOs ($111,500 and $102,750 respectively), followed by multi-state/regional, state, multi-county, and local nonprofit organizations ($94,000, $89,000, $79,468, and $71,997 respectively). Again, the type and scope of organization are frequently related. The effect of the interaction of these two variables on income must again be left to the complete report. Geographic Area In the report, compensation data are reported by region, state, and metropolitan area, and by each of these variables vs. type of organization. Median annual incomes of CEOs of nonprofit organizations are highest in the Rocky Mountain and southwestern states ($95,000 and $92,600 respectively), and lowest in the Pacific and southern states ($75,746 and $80,000 respectively), with median incomes in the north central, northeastern, and midwestern states falling between $88,500 and $80,759. Treating metropolitan areas alone, the highest median annual incomes of CEOs in the nonprofit sector are found in or near: New York City (five boroughs - $130,000); Chicago ($109,500); Denver/Boulder ($106,475); and Seattle/Everett ($100,404). The lowest median annual incomes are found in Indianapolis ($66,653); San Diego ($69,000); Marin/Sonoma Counties ($69,500); and Cleveland ($69,800).
Also, see other survey reports of Nonprofit Organizations.
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