Nonprofit Compensation and Benefits Report Released

Report finds that budgets and salaries have increased at nonprofit organizations, but women are still underpaid compared to their male counterparts.

The Philanthropy & Nonprofit Leadership Center announced the findings of its 2013 Nonprofit Compensation and Benefits Report. The study, published every two years, examined the compensation, benefits and employment of over 160 eligible nonprofit organizations in Central Florida. This year’s report shows that the budgets of nonprofit organizations have increased along with salaries: more than 70 percent of nonprofits surveyed reported pay increases. The report also found that women are underpaid in executive ranks when compared to their male counterparts. 

“Our fourth nonprofit compensation and benefits report showed interesting results,” said Margaret Linnane, executive director of the Philanthropy & Nonprofit Leadership Center. “While we noticed a similar trend from previous surveys in the disparity of male and female salaries, the economy appears to be improving. Almost two thirds of nonprofits reported increased budgets and salaries, especially in the development director field. There was also a higher turnover rate for employees seeking new jobs and considering retirement. These factors indicate a recovering economy, which we haven’t seen in the reports for some time.”

Since the last survey, the Central Florida nonprofit sector has raised budgets and salaries, a sign of the industry moving out of the recession. The median annual operating budget in the 2011 survey was $1,354,607, which increased to $1,480,400 in 2013. 

Compensation

More than 70 percent of participating organizations reported salary increases in budgets in their current fiscal year. This appears to reflect improving economic conditions, and is an increase over the 2011 results, in which only 56 percent reported salary increase budgets.

On average, male CEOs/executive directors earn significantly higher pay than do females. The average pay for all CEOs/executive directors in the sample was $99,868 per year; for men, the average annual CEO/executive director pay was $115,731; for women, the average annual CEO/executive director pay was $87,693. While a majority (57 percent) of those surveyed was women, a greater number of men are found in the CEO/executive director positions of the largest organizations, which tend to pay higher wages.

Many participating nonprofit organizations use more than one rationale for salary increases. Merit was cited by 62 percent, across-the-board increases by 30 percent, cost of living by 21 percent and length of service by seven percent. Seventy percent of participating organizations expect to have funds for salary increases in their current fiscal year, an increase over the 56 percent that reported increases in 2011, and a possible indication of improving economic conditions.

Base salary levels for the four executive positions reported in detail have risen since the Philanthropy & Nonprofit Leadership Center’s 2011 study:

•    CEO/executive director: $99, 868 in 2013 versus $96,621 in 2011 (1.7 percent increase)
•    COO/associate director: $97,650 in 2013 versus $95,522 in 2011 (1.1 percent increase)
•    CFO: $97,628 in 2013 versus $92,711 in 2011 (2.6 percent increase)
•    Development director: $82,457 in 2013 versus $77,556 in 2011 (3.1 percent increase)

The survey shows that development director salaries are rising faster than other positions in senior management, with a 3.1 percent increase. The notable increase helps to demonstrate that the skill set is in demand both locally and in the country.

Of the 137 positions reported in 2011, 123 of them were also included in 2013. Overall, the average annualized increase in salaries for these positions during the two years between March 1, 2011-13 was 2.4 percent.

Employment

The proportion of full and part-time employees has shifted slightly since 2011: 76 percent of employees worked full-time in 2011, and 73 percent did in 2013. The survey results also reveal that people are beginning to move around to new organizations and positions. Total turnover (including both voluntary and involuntary) has risen slightly from an average of 15 percent for full-time employees and 16 percent for part-time employees in 2011, to 15 percent for full-time employees and 30 percent for part-time employees in 2013. It is not yet clear whether this uptick in turnover is a sign of improving job opportunities for employees at these organizations.

Retirement

The nonprofit sector is also evidently not ready for the turnover when leaders retire. Only 69 organizations (43 percent of the sample) have a completed and updated non-emergency transition plan in place for their CEO/executive director position. In thirteen of these organizations (8 percent of the sample), the CEO/executive director was expected to retire or resign within the next three years. Another 20 organizations (12 percent of the sample) expected a transition in the CEO/executive director position within the next three years, but do not have an emergency succession plan.

Methodology

The 2011 survey reported data from 160 nonprofit organizations within the seven-county area of Central Florida (Brevard, Lake, Orange, Osceola, Polk, Seminole, and Volusia). Data was compiled on over 9,000 individual salaries (the number that met the criteria for reporting purposes) across 134 job titles. The annual operating budgets of participating nonprofits ranged from under $50,000 to over $100,000,000 per year. The median annual operating budget in the sample was $1,354,607.

In 2013, 161 nonprofit organizations within the same seven-county area completed and returned questionnaires. One hundred and nineteen of these 161 organizations (74 percent) participated in a previous survey (2007, 2009 and/or 2011) while 42 of them participated for the first time this year. The overall data sample size was slightly larger in 2013, with just under 10,000 individual salaries, and the report provides compensation data for 137 jobs. Organizations represented in this report are, as a whole, similar in size to the 2011 survey participants and have a median annual operating budget of $1,480,400.

To purchase a copy of the 2013 Nonprofit Compensation and Benefits Report, log on to: http://pnlc.rollins.edu/?page=salary_survey.