Once you have created your budget, it’s important to review it often. This will help ensure that your estimates are accurate and that you’re on track to reach your financial goals. This includes estimating the costs of running your organization; such as salaries, rent, office supplies, and marketing. This includes estimating the amount of money you expect to receive from donations, grants, fundraising events, and investments. According to tax returns, ASPCA CEO Matthew Bershadker received $852,231 in 2019 and the ASPCA had over $20 million in offshore accounts!

Benchmark nonprofit compensation levels

The survey also showed that 42% were focused on correcting/addressing pay/benefits inequities. It’s ironic that while most executives in nonprofits are paid 20 – 40% less than their for-profit counterparts, news reports have focused on the few excessively high salaries in nonprofits. This month’s issue of the Board Café offers a framework for determining executive pay. Both the Internet and new regulations in some states are making nonprofit boards more aware than ever about executive compensation. On the web at , all the Forms 990 for US nonprofits (with annual revenues of $25,000 or more) are posted and each shows the salaries for “key employees” who are paid $50,000 per year or more.

Take stock of your nonprofit budget and set your own goals

America’s 1.3 million charitable nonprofits feed, heal, shelter, educate, nurture, and inspire people of every age, gender, race, and socioeconomic status, from coast to coast, border to border, and beyond. The report further documents how fundraisers of color must be prepared to encounter explicit racial bias both internally in their own organization and in their external relationships, such as with donors. “Increasing our Giving Day revenue over last year by 15% through a stepped-up social media campaign and outreach to 30 new potential business sponsors” is a reasonable goal. “Double our Giving Day revenue” with no idea of how to get there is not reasonable. There are also external factors to consider, such as local competition for donor dollars, recessions, or the decline in donations we’re currently seeing across the nonprofit sector.

A Guide to the 2022-2023 Compensation Landscape

So many new nonprofits rely on small, sporadic individual donations and fundraising events (that could get canceled at any time due to health concerns). Yes, there are certain common nonprofit job titles and professions that typically get paid more than others in a nonprofit. Generally, executive leadership, The Key Benefits of Accounting Services for Nonprofit Organizations financial leaders (CFO, Controller), technology, and data science roles can receive premium pay.

Tools for Boards

• But, there’s a simple way to track how effective you are, by looking at what percentage of your budget is going to salaries, wages, benefits, and other types of compensation.
• The report captures the most authoritative and accurate compensation data from close to 88,000 nonprofits based on IRS data.
• When it comes to nonprofits, personnel expenses are the most significant chunk of the overall expenses.
• This phenomenon is known as overhead aversion, and a study on the subject by behavioral economist Uri Gneezy finds that offering overhead-free donation opportunities to smaller donors can help bridge this gap.
• Workers in these skill-heavy categories usually have a commensurate salary or are otherwise highly compensated and so don’t get paid extra for working more than 40 hours in a week.
• Some things literally take years to pay off – but when they do, they can pay off big.
• A nonprofit line of credit is a great resource tool for nonprofit financing.

However, like every business, the payment of nonprofit workers is essential for the efficient operation of nonprofit organizations. Therefore, the executive directors of nonprofits should implement a working strategy that allows for the prompt payment of workers’ salaries to attract, motivate and retain their workforce, especially the essential staff. A nonprofit budget is a financial plan that details how a nonprofit organization will raise and spend money.

• The irregularities in cash flow have made it extremely difficult for nonprofits to cater to employees’ salaries in due time, making many employees live paycheck to paycheck.
• Half of respondents also indicated that they would continue to leverage sign-on bonuses.
• The gender pay gap has been slowly declining overall with female CEOs gaining 6 cents to the dollar since 2011.
• This includes estimating the costs of running your organization; such as salaries, rent, office supplies, and marketing.
• These are also known as indirect costs, expenses that cannot be tied directly to programs.
• This blog explores how CEO salaries compare to other staff at U.S. grantmaker organizations.

Many nonprofits have realized the importance of hiring talents to effectively further their missions. Having a skilled workforce in your fold implies that your nonprofit organizations are obligated to pay their workers adequately and on time, in line with the Fair Labor Standards Act. Moreover, depending on the nature of your workers, you may have a weekly, biweekly, semimonthly, or monthly payment schedule and stay pretty streamlined in the method you use. It’s mandatory for nonprofits to use funds in accordance with their mission. While private foundations are also classified as nonprofit organizations, the rules that mandate them are a bit different than those for other types of nonprofits. Non Profit Pay Scale and Other Recommendations The Better Business Bureau’s standards recommend that at least 65 percent of the nonprofit’s total expenses should be for program expenses, including salaries.

2021 Nonprofit CEO Compensation Study

Across various occupations, median nonprofit salaries range from around $32,000 to $70,000, according to data from salary comparison site PayScale. For religious nonprofits, the most recent ERI data shows that the median CEO compensation was $71,557 and the mean was $95,134. These are the lowest median and mean compensation figures of all nonprofit industries in the report. Below, we provide answers to common questions about setting nonprofit CEO compensation. This includes questions about how to determine a peer group for compensation comparisons, approach cost of living or merit increases, and more.