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Pay Rates in Nonprofit OrganizationsCompensation in Nonprofit Organizations, 17th Edition - 2004PUBLISHED: October 2004 Summary of the 2,073-page Compensation in Nonprofit Organizations, 17th Edition - 2004 survey report of 130 benchmark jobs from Abbott, Langer & Associates, Inc. The following describes the highest paid job characteristics, the national median total cash compensation for 48 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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Help our next Nonprofit salary survey 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 10 or more employees and an annual budget of $5 million or more. This composite individual is probably with a health-care providing organization, an engineering/scientific/technical professional society, a manufacturing trade association, a merchandising trade association, a health-care trade association, a United Way/Community Chest organization, a membership organization, or a charitable organization. He or she is located in or near New York City, Washington (DC), Arlington/Alexandria/Reston (VA), Oshkosh, Chicago, Pittsburgh, Des Moines, or Philadelphia, or outside the metropolitan areas studied in Pennsylvania or Maryland. While the median income of nonprofit CEOs is $81,000, some of the highest-paid Chief Executive Officers in nonprofit organizations make well over $700,000.
This information represents the briefest possible "boil-down" of one segment of the voluminous data provided on over 89,000 employees in 130 benchmark jobs by 2,305 nonprofit organizations of widely-differing types, in response to the recent annual survey conducted by Abbott, Langer & Associates, Inc. The end results of the survey appear in Compensation in Nonprofit Organizations, 17th Edition - 2004, a three-volume, 2,073-page statistical analysis of compensation practices in the field.
Copies of the complete report can be purchased for $240.00 (for Part I - Professional Societies and Trade Associations), $295.00 (for Part II - All Other Types of Nonprofits), and $350.00 (for both Parts 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). Also available are findpay-SNO04 (a computer program which permits the user to determine pay levels of each survey job on the basis of two or more variables simultaneously) ($525.00); Fringe Benefits and Working Conditions in Nonprofit Organizations, 5th Edition ($295.00); and Special Nonprofit Policies & Practices, 2003 ($250.00). 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 $225.00 each. Obviously, it would be an exercise in futility to attempt more than a superficial overview of the survey results in this summary. However, some overall data can be presented herein and some comments made on the relationship of the numerous demographic variables studied to the income of Chief Executive Officers in the nonprofit sector. Overall Income The median incomes of some of the other 129 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. Any 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 ($127,410), research/scientific/testing organizations ($126,000), business-related trade associations ($120,000), engineering/scientific/technical professional societies ($117,284), membership organizations ($99,100), and foundations ($97,716). The median annual compensation of CEOs is lowest in arts centers/councils/service organizations ($52,750), performing arts organizations ($56,548), chambers of commerce/associations of commerce & industry ($57,330), day care organizations ($62,234), and community centers/YMCAs ($64,900). The CEOs of the remaining types of nonprofit organizations for which pay data are reported for CEOs [advocacy/consumer organizations; aging/senior citizen organizations; charitable organizations; community development organizations; developmental disabilities care providing organizations; economic development organizations; educational providing organizations; employment/training organizations; environmental/natural resources organizations; health care providing organizations; health-related/mental health-related providing organizations; housing/shelter organizations; mental-health care providing organizations; museums/art institutes/historical societies; nonprofit trade associations; religious organizations; social service/social welfare organizations and youth organizations] all had median incomes between $85,450 and $65,727. 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 $55,775 for CEOs in nonprofit organizations with under five employees to $208,354 for those in organizations with 1,000 employees or more. 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 $202,677, 371% higher than the median income received by CEOs in nonprofit organizations with annual budgets of under $250,000 ($43,000). 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 ($116,000 and $105,000 respectively), followed by state, multi-state/regional, multi-county, and local nonprofit organizations ($88,580, $83,819, $76,188, and $72,000 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 southwestern and Rocky Mountain states ($98,156 and $87,968 respectively), and lowest in the northeastern and north central states ($75,502 and $75,948 respectively), with median incomes in the midwestern, southern, and Pacific states falling between $87,500 and $80,000. 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 - $155,750); Chicago ($105,098); San Diego ($105,000); and Washington (DC) ($94,498). The lowest median annual incomes are found in Harrisburg/Lancaster/York (PA) ($57,500); Marin/Sonoma Counties (CA) ($60,000); Philadelphia ($70,059); and San Jose ($71,250).
Also, see other survey reports of Nonprofit Organizations.
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