Compensation Benchmarking in Non-Profits
Non-profits continue to face unique challenges when it comes to attracting and retaining the talent needed to carry out their missions. Compensation programs require a careful balance to ensure IRS compliance and reasonableness while remaining competitive in the market.
In this month’s Compensation Insights, we highlight the importance of executive compensation benchmarking in non-profits. We share best practices and ways to overcome challenges in this process to arrive at an effective and defensible compensation strategy.
We hope those of you in the non-profit sector find the information helpful as you think about your executive pay programs for 2024 and beyond. As always, don’t hesitate to reach out to NFPCC for expert guidance in any aspect of your compensation planning.
In the realm of non-profit organizations, where missions supersede profits, executive compensation plays a critical role in attracting and retaining top talent. However, determining appropriate compensation levels can be complex, especially in an environment where resources are limited, and transparency is paramount. This article explores the importance of executive compensation benchmarking in non-profit organizations, shedding light on why it matters and how it can be effectively implemented.
Nonprofit Executive Compensation
Nonprofit executive compensation tops the current list of IRS hot button issues. In recent years, the IRS has been ramping up its oversight and enforcement of nonprofit executive compensation. With all the rancor surrounding executive perks and bonuses on Wall Street, populist sentiment can spill over into the nonprofit sector as well. It all adds up to the equivalent of a message written in the sky: get your house in order!
Nonprofit Executive Pay Rises—but Varies Widely
Executive pay at the U.S.’s nonprofits has steadily grown over the past five years, but the gains are far from equal.
An annual analysis of nonprofit executive compensation published Thursday by philanthropy data provider Candid shows that it makes a difference where a nonprofit is based, what field it is in, and whether the executives are male or female.
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