Is There a Cap on Nonprofit Salaries in NYS – or Not?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 21. August 2014 11:57
New York State Governor Andrew Cuomo issued an administrative regulation in May 2012 that set a salary cap on nonprofit contractors that get more than $500,000 and 30 percent of their revenue from the state – they are not allowed to pay more than $199,000 a year in state money toward an executive’s salary. Some nonprofits that have contracts to provide social services for the state have challenged this rule, and now two judges have come to different conclusions about these executive compensation restrictions. [More]

Tracking Nonprofit Executive Salaries: Medical Organizations Other Than Hospitals

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 5. August 2014 13:57
The compensation for executives in the medical field, whether their employers are for-profit or nonprofit tends to be high, according to conventional wisdom. Yet a closer look at the nonprofit world shows that there are significant differences in pay, depending on the type of health-related activities or services provided. Taking hospitals out of the mix leads to a more nuanced portrait of compensation in the nonprofit health sector. [More]

Tracking Nonprofit Executive Salaries: Environmental and Animal Organizations

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 3. June 2014 09:21
So how much does the executive director of “Poodles in Peril” or of “Save Cripple Creek from the Developers” earn each year? How much should he/she make? While these are imaginary organizations, groups with similar names asking for donations seem to be everywhere – in the daily mail, highway billboards, television, and print media. The appeals are numerous and the accompanying pictures and prose are dramatic and engaging, but how do these types of organizations (Environment/Animals, in the National Taxonomy of Exempt Entities, the classification system used in the nonprofit sector) fit into the nonprofit sector? And how much do their executives make compared to similar- sized nonprofits providing other types of services? [More]

Should Nonprofits Be Concerned about IRS Review of Executive Compensation?

by Linda M. Lampkin, Senior Nonprofit Compensation Specialist 4. April 2014 08:55
Last week, the IRS published data on the number of information returns filed by tax-exempt organization in 2012 – 771,675 to be exact – and the number of those returns that were subjected to further examination (meaning the organization was contacted by the IRS for further information, clarification, or a full audit). The number of organizations involved in such an examination of their 2012 returns by the IRS in FY 2013 was 2,882. Most were Forms 990 and 990-EZ (2,744) and the remainder were Forms 990-PF, with a few other forms filed by political organizations and trusts. So, does that low percentage of scrutiny by the IRS mean that nonprofits should have no worries about executive compensation levels? [More]

Job Analysis and FLSA Executive Exemption Test

by Malak Kazan, CECP, CCP, CBP, GRP 25. March 2014 12:24
In March 2014, significant changes were proposed to the Fair Labor Standards Act and targeted for likely enactment in mid to late 2015; they are still pending a public notice and comment period. One of the changes that employers should follow is the possible elimination of the concurrent duties exemption of primary duties for the executive exemption test. [More]

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