Nonprofit Compensation in the News
The Chronicle of Philanthropy just released its recent survey of 325 organizations that are among those that raised the most money from private sources in 2008 as well as grant makers that held the most in assets that year – in otherwords, large national nonprofit corporations. This survey has been covered by USA Today and National Public Radio.
Nonprofit salaries are constant fodder for debate and we as a sector struggle with what is appropriate. What is your theory of nonprofit compensation?
- Market theory – nonprofits are in a competition for talent, like other employers, and must negotiate on that basis.
- Budget self discipline and voluntary restraint – deliberately moderate compensation in spite of what may occur with other types of employers.
- Psychic income as essential ingredient – you’re not in it for the money, only part of your compensation is in cash; you receive the rest in your heart — or will in the next world (you’re doing the Lord’s work, after all), etc. etc.
How does your nonprofit set compensation levels? How would you prefer the organizations to which you donate set compensation levels?