States Target Nonprofit Executive Pay

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 24. January 2014 08:11


Should nonprofit executives “volunteer” a part of their compensation (by receiving a discounted salary) because they work for a charitable organization? Alternatively, is a “high” salary important to attract the kind of talent needed to achieve the purpose of the nonprofit? The IRS says that pay must be reasonable and that salary data on comparable jobs in comparable organizations must be used to document that what is paid is appropriate. However, some states are moving to supplement that IRS scrutiny at the federal level with some limits on salaries for nonprofits at the state level.
[More]

A Modest Suggestion on Pay for Nonprofit Executives

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 7. January 2014 15:02


A recent blog by George Weiner suggests the following approach for a nonprofit to reduce those pesky overhead costs that are so often the focus of criticism: one-year overhead plan, salary, and benefits.

[More]

Nonprofit CEO Compensation in Massachusetts – Too High or Not?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 30. December 2013 12:51
Massachusetts Attorney General Martha Coakley released a December report on nonprofit executive compensation highlighting some high salaries, particularly in the health and education fields. The report states, “While CEOs at for-profit companies have commanded the highest compensation packages, CEO compensation at public charities has also increased. In fact, high executive compensation at public charities frequently leads to greater levels of concern, because of the view that large compensation packages take money away from charitable missions. They can also negatively affect the perception of the charities with employees, donors and other constituencies, as well as with the general public. At the same time, the largest public charities are complex organizations in their own right, and demand a level of executive ability that is at least commensurate with that complexity.“
[More]

How Much Should a Nonprofit Pay Its Chief Financial Officer?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 30. October 2013 16:10
Of course, the answer is “it depends.” In determining market compensation, ERI Economic Research Institute has found through its years of research that the influencing factors are what you do and where you do it. “Where” refers to the kind and size of organization as well as its geographic location. A quick review of the Form 990 data submitted annually by all US nonprofits shows the significant variation in compensation for nonprofit organizations providing human services, based on their size, as measured by annual revenue. [More]

What Determines Nonprofit Hospital CEO Pay?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 22. October 2013 13:20
Setting pay is the responsibility of the hospital board, and those board members must collect and use data from comparable organizations and choose the relevant criteria, most commonly size and location. Using ERI’ s compensation data from the Forms 990 contained in the Nonprofit Comparables Assessor, the table below illustrates the wide variation in pay among larger and smaller hospitals in different locations. [More]