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NFP Compensation Insights | February 2024

NFP Compensation Insights


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.

The Vital Role of Executive Compensation Benchmarking in Non-Profit Organizations

By Matt Brown

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.

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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!

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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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2024 Midstream & Upstream Industry Compensation Surveys Open April 1st! 

Keep your programs competitive by participating in NFPCC’s Midstream and Upstream Compensation Surveys. Gain access to the latest benchmarks ranging from administrative support to executives in both corporate and technical roles. Data includes incentives like philosophy and pay practices, target and actual compensation, and vehicle design and prevalence.

Don’t miss out – results will only be available to participating organizations!

Proxy Season 2024 CD&A Disclosure Preparations

Ensure Your Disclosures are Effective and Compliant

As we start preparing for proxy season, NFPCC is ready to assist you in the development and overall structure of your CD&A disclosure. Leveraging extensive experience and knowledge of real-time best practices in the evolving shareholder communication platform, our consultants will help you craft an effective message to your investor audience while fulfilling SEC requirements.


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