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Pay Rates in Nonprofit OrganizationsCompensation in Nonprofit Organizations, 15th EditionPUBLISHED: September 2002 Summary of the 1,485-page Compensation in Nonprofit Organizations, 15th Edition survey report of 125 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).
Help our next Nonprofit salary survey 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 51,000 employees in 125 benchmark jobs reported by 1,351 nonprofit organizations of widely-differing types. Copies of the complete two-volume, 1,485-page report entitled Compensation in Nonprofit Organizations, 15th Edition can be purchased for $195.00 (for Volume I - Professional Societies and Trade Associations), $240.00 (for Volume II - All Other Organizations), and $295.00 (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 Illinois, Ohio, New York/New Jersey, and the Mid-Atlantic states (Washington, DC, Delaware, Maryland, and Virginia) are available for $195.00. Fringe Benefits and Working Conditions in Nonprofit Organizations, 5th Edition, can be purchased for $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 or national organization with 100 or more employees and an annual budget of $10,000,000 or more. This composite individual is probably with a manufacturing trade association, a foundation, an exhibition/fair, a management society, a research/scientific/testing organization, a medical/dental society, a nonprofit trade association, or a social service/social welfare organization. He or she is located in or near Washington (DC), New York City, Arlington/Alexandria, Philadelphia, Austin, Kansas City (MO), Chicago, or Des Moines, or outside the metropolitan areas studied in southern California 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 124 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 business-related trade associations ($122,697), health & welfare-related professional societies ($118,000), foundations ($103,950), health-care providing organizations ($95,050), educational providing organizations ($93,000), and performing arts organizations ($85,000). The median annual compensation of CEOs is lowest in chambers of commerce/associations of commerce & industry ($41,750), advocacy/consumer organizations ($56,881), aging/senior citizen organizations ($57,183), housing/shelter organizations ($63,000), and development disabilities care- providing organizations ($72,508). The CEOs of the remaining types of nonprofit organizations for which pay data are reported for CEOs [artistic/cultural/literary organizations; charitable organizations; employment/training organizations; health-related/mental health-related providing organizations; mental-health care providing organizations; religious organizations; and social service/social welfare organizations] all had median incomes between $81,721 and $72,750. 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 $50,500 for CEOs in nonprofit organizations with under five employees to $120,000 for those in organizations with 250 to 499 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 $204,300, 422% higher than the median income of $39,157 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 ($120,370 and $114,500 respectively), followed by state, multi-state/regional, multi-county, and local nonprofit organizations ($90,000, $83,000, $72,050, and $69,150 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 northeastern and Pacific states ($97,500 and $92,000 respectively), and lowest in the midwestern and southern states ($77,545 and $78,760 respectively), with median incomes in the southwestern, Rocky Mountain, and north central states falling between $91,172 and $79,000. 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 - $133,000); Los Angeles ($97,200); Chicago ($95,760); Washington, DC ($87,000); and Columbus, OH ($85,000). The lowest median annual incomes are found in Cleveland ($69,500); Cincinnati ($73,000); and Baltimore ($76,193).
Also, see Fringe Benefits and Working Conditions in Nonprofit Organizations.
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