02 November 2010

Salaries at Community Organizations

Welcome back!

I get questions about compensation often. And, twice in the last week the subject has come up. Here is a quick look at some national median salaries for CEOs at nonprofits with various levels of income from the Chronicle of Philanthropy.

For a more complete look at compensation, the Southern California Center for Nonprofit Management publishes an annual compensation and benefits survey for the State of California. It is pretty reasonable to purchase if you participate in the survey. You can usually read the most recent survey at their office in Los Angeles.

It is the responsibility of the board of directors to set the compensation of the organization's CEO and to monitor its own policy on compensation for the entire organization.

A sample board level policy on compensation:
"With respect to employment, compensation, and benefits to employees, consultants, contract workers and volunteers, the CEO shall not cause or allow jeopardy to financial integrity or to public image.  Further, the CEO shall not…
  1. Change the CEO’s own compensation and benefits, except as his or her benefits are consistent with a package for all other employees
  2. Promise or imply permanent or guaranteed employment
  3. Establish current compensation and benefits that deviate materially from the geographical or professional market for the skills employed
  4. Create obligations over a longer term than revenues can be safely projected, in no event longer than one year and in all events subject to losses in revenue
  5. Establish or change pension benefits so as to cause unpredictable or inequitable situations, including those that . . .
A. Incur unfunded liabilities
B. Provide less than some basic level of benefits to all full time employees, though differential benefits to encourage longevity are not prohibited
C. Allow any employee to lose benefits already accrued from any previous plan

Your ideas matter here! Please leave a comment.

1 comment:

Glen Peterson said...

So, if you notice the highlighted part of the policy, you can find out what the compensation for similar organizations, with similar incomes, for positions that require similar skills in the specified geography using the resources I have provided above.