2012 Northeast Indiana Nonprofit Salary Report · 2012 Northeast Indiana Nonprofit Salary ... spent...

Northeast Indiana Nonprofit Salary Report

2012Northeast Indiana Nonprofit Salary

Report

Provided by the community foundations, United Ways, and United Funds of northeast Indiana


Foreward

On behalf of the community foundations, United Ways and United Funds of northeast Indiana, we are pleased to provide you with this Northeast Indiana Nonprofit Salary Report.

Prior to this report, a comprehensive summary of nonprofit salaries and benefits did not exist, so we were very excited to begin a tradition that we feel is very important to the current and future vitality of the north-east Indiana nonprofit sector.

This report was prepared by Bryan Orander of Charitable Advisors, a consulting practice which focuses on nonprofit organizations. It was funded by the United Way of Allen County and the Community Foundation of Greater Fort Wayne.

Northeast Indiana is blessed with a wide variety of excellent nonprofit organizations serving in many chari-table areas. We hope that board members of those organizations find this information helpful in develop-ing a fair and competitive system of compensation and benefits.

United Way of Adams County Adams County Community FoundationUnited Way of Allen County Community Foundation of Greater Fort WayneUnited Way of DeKalb County DeKalb County Community FoundationUnited Way of Huntington County Huntington County Community FoundationUnited Way of Kosciusko County Kosciusko County Community FoundationUnited Fund of LaGrange County LaGrange County Community FoundationUnited Way of Noble County Noble County Community FoundationSteuben County United Way Steuben County Community FoundationWabash County United Fund Community Foundation of Wabash CountyUnited Way of Wells County Wells County FoundationUnited Way of Whitley County Whitley County Community Foundation

Welcome


Section 1: Applying this Report to Your Organization page 4

Section 2: Participating Organizations page 6

Section 3: Overview of Participating Organizations page 8

Section 4: Methodology and Report Design page 10

Section 5: State of the Sector page 12

Section 6: Salary Overview and Detail for All Positions

Salary Overview of All Positions page 15

Executive Director/President/Chief Executive Officer page 16

Chief Operating Officer or Deputy Director page 18

VP/Director of Programs page 19

CFO/Controller page 20

VP/Director of Development page 21

VP/Director of Marketing/PR page 22

VP/Director of Human Resources page 23

Section 7: Benefits Offered page 25

Appendix: How Much to Pay the Executive Director page 28

Table of Contents


Applying this Report to Your Organization

“Our People are our most important asset!” We hear this cliché in every management and leadership development context and we know it is true. It takes good people to make a good organization and to produce good results for our clients, patrons, partners, and other stakeholders. But how much time is spent in the typical board meeting talking about staff recruiting, staff training and development, staff retention, or staff compensation? Here is a chance to begin thinking more intentionally about the invest-ments your organization makes in your “most important asset”.

Best Practices 1. Compensation PhilosophyDo you have a compensation philosophy? According to the Opportunity Knocks 2010 Retention and Va-cancy Report, a competitive job offer was most often cited as the top reason for an employee voluntarily leaving their current position. Ultimately, it is a board-level discussion to define, in general terms, what type of staff the organization needs to succeed and how much those people should be paid. Most specifi-cally, the board typically decides the compensation of the CEO/Executive Director.2. Attracting Talent = Key DifferentiatorYour organization’s approach to staff compensation and respect for staff members is a key part of your nonprofit’s identity in the community and can be a key differentiator in both perceptions and reality of how well you provide your services and attract funding.3. Leadership DepartureMany times the board compensation discussion only arises with the departure of a long-term leader and the realization that the open position cannot be filled with a qualified candidate in the same salary range.4. Small Nonprofits Can BenefitUsing resources like this salary survey, even small nonprofits can begin to make intentional decisions about the desired range of salaries and benefits needed to position the organization to attract and retain the right caliber of leaders to carry out your mission.5. More Than Just MoneyAlso consider the non-financial components of a compensation package: A flexible work schedule, vacation time, or professional development and training opportunities can make your compensation package more appealing.

Find Additional Data Points for ComparisonThe data in this report is best used as one of multiple sources of reference or information when deter-mining your organization’s salaries and benefits. You should seek out at least one, if not more, additional sources for comparison.


Suggestions for Other Sources of Information • National or state associations of nonprofits similar to yours• Tax return Form 990 data on similar organizations or salary reports from www.Guidestar.org• HR consultants and Professional Employer Organizations who work in your field• National directories often purchased by larger nonprofits and businesses

Work Your Way up the Salary ScaleIf this is the first time your organization has had a compensation conversation, it is certainly acceptable to set your sights on getting everyone to the salary average or mean for their position for your size organiza-tion. Taking a longer view, it can only be positive to aim higher. Since few organizations can make wholesale adjustments in staff salaries, it may take time to bring your salaries closer to market rates.

Raise the Bar/Setting Goals and ExpectationsA clear set of expectations tying your organization’s outcomes to staff performance can be critically im-portant when attempting to provide a strong social return on investment for your funders and donors. Your conversations around compensation, especially increasing compensation, will naturally be tied to staff performance. Small organizations are notorious for avoiding performance-related discussions in hopes of maintaining a “family” feeling and culture.

Even large organizations with the advantages of dedicated human resources professionals and manage-ment training struggle to define staff expectations and support those staff toward successful accomplish-ment of those goals. Transitioning to a performance-oriented compensation practice can mean substantial culture shifts within the organization would need to occur, so ensuring the board and key executives are working together to carve out the right system and then communicating that system across the organization in a clear manner is important.

Applying this Report to Your OrganizationApplying this Report to Your Organization


Participating Organizations

We want to express our appreciation to the following organizations who took the time and effort to provide complete responses to this survey.

A Day Away Adult Day CareA Hope Center Pregnancy & Relationship ResourcesACRES Land TrustAfrican/African-American Historical MuseumAging & In-Home Services of Northeast IndianaAllen County Courthouse Preservation TrustAllen County Drug & Alcohol ConsortiumAllen County Education PartnershipAllen County-Fort Wayne Historical SocietyAllen County SPCAAlliance IndustriesAmerican Heart AssociationAmerican Red Cross of North Central IndianaAmerican Red Cross, Adams County Chapter Animal Welfare League of Kosciusko CountyARCHArtlinkAssociated Churches of Fort Wayne IndianaBABE of Whitley CountyBi-County Services of Adams and Wells CountiesBig Brothers Big Sisters of Northeast IndianaBlue JacketBoys and Girls Club of Fort WayneBoys and Girls Club of Huntington CountyCancer Services of Northeast IndianaCardinal ServicesCaring About PeopleCarriage HouseCASA of Kosciusko CountyCatholic Charities, Fort Wayne-South Bend DioceseCenter for Whitley County YouthChildren First CenterChildren’s Autism CenterChristian Community Health CareCombined Community ServicesCommunity Action of Northeast IndianaCommunity Transportation NetworkFinancialHope Counseling and EducationCornerstone Youth CenterCrime Victim Care of Allen CountyDekalb Community Impact CorporationDekalb County Council on AgingDekko FoundationDown Syndrome Association of Northeast IndianaDr. Bill Lewis Center for ChildrenDrug Free Noble CountyEarly Childhood AllianceEast Allen Family Resource CenterEast Wayne Street CenterEaster Seals ARC of Northeast Indiana

Economic Development Group of Wabash CountyEducational Opportunity CenterElijah Haven Crisis Intervention CenterEmbassy TheatreErin’s House for Grieving ChildrenEuell A. Wilson CenterFAME NE (Foundation for Art and Music in Education)Family Centered ServicesFifth Freedom NetworkFort Wayne Center for LearningFort Wayne Children’s ChoirFort Wayne Civic TheatreFort Wayne Dance CollectiveFort Wayne Habitat for HumanityFort Wayne Philharmonic OrchestraFort Wayne Public TelevisionFort Wayne Rescue Mission MinistriesFort Wayne Sexual Assault Treatment CenterFort Wayne Urban LeagueFort Wayne YoutheatreFreedom AcademyGarrett Museum of ArtGarrett-Keyser-Butler (GKB) Head Start ProgramGateway Woods Family ServicesGenesis OutreachGirl Scouts of Northern Indiana-MichianaHabitat for Humanity of Kosciusko CountyHabitat for Humanity of Northeast IndianaHabitat for Humanity of Whitley CountyHabitat for Humanity, Huntington CountyHabitat for Humanity, LaGrange CountyHeadwaters CounselingHealthier Moms and BabiesHealthVisions Fort WayneHearCare ConnectionHoneywell Center FoundationHope CSAH-O-P-E for AnimalsHope HouseHumane Society of Whitley CountyHuntington County Child Advocacy CenterHuntington County Community FoundationHuntington County Literacy CoalitionIndiana Jewish Historical SocietyJudy A. Morrill Recreation CenterJunior Achievement of Northern IndianaKate’s KartKendallville Day Care CenterKosciusko Community YMCAKosciusko County Community Foundation


Steuben County Council on AgingSteuben County Literacy CoalitionSteuben County United WaySubstance Abuse Awareness CouncilSuper ShotTurnstoneUnited Fund of LaGrange CountyUnited Way of Allen CountyUnited Way of Dekalb CountyUnited Way of Huntington CountyUnited Way of Noble CountyUnited Way of Wells CountyUnited Way of Whitley CountyUnity Performing Arts FoundationVincent VillageVisiting Nurse & Hospice HomeVolunteer Center @ RSVPVolunteer Lawyer Program of Northeast IndianaWabash County Historical MuseumWabash County Tobacco Free CoalitionWabash County United FundWells Community Boys and Girls ClubWells County Community FoundationWellspring Interfaith Social ServicesWhitington Homes and Services for Families and ChildrenWhitley County Community FoundationWhitley County Council on AgingWhitley County Family YMCAWomen in TransitionWomen’s BureauWorld Baseball AcademyYouth Services Bureau of Huntington CountyYWCA of Northeast Indiana

Kosciusko County Educational Development Group (KC-ED)Kosciusko County Right to LifeKosciusko Literacy ServicesLafontaine Arts CouncilLaGrange County Community FoundationLaGrange County Council on AgingLaGrange County Economic Development CorporationLaGrange County Lakes CouncilLeadership Fort WayneLeague for the Blind and DisabledLEAP of Noble CountyLearn More CenterLife and Family ServicesLiteracy Alliance (The)Little River Wetlands ProjectLiving Well in Wabash County COALove INC (Love in the Name of Christ)Lutheran Life VillagesLutheran Schools PartnershipLutheran Social Services of IndianaMacedonian Patriotic OrganizationMad Anthonys Children’s Hope HouseManchester Early Learning CenterMLK Montessori SchoolMatthew 25 Health and Dental ClinicMcMillen Center for Health EducationMustard Seed Furniture Bank of Fort WayneNeighborLink Fort Wayne FoundationNew Beginnings Preschool & Child CareNoble County ARCNoble County Community FoundationNoble County Council on AgingNoble House MinistriesNorth Webster Community CenterNortheast Indiana Burn CouncilNortheast Indiana Innovation CenterNortheast Indiana Public Radio (NIPR)Northeastern Indiana CASAOneonone Education ServicesParkview Huntington Family YMCAPathfinder Services IncPower House Youth CenterProject MercyQuesta Foundation for EducationReclamation ProjectRedeemer RadioRonald McDonald House Charities of Northeastern IndianaScience CentralSt. Martin’s HealthcareSteuben County Community Foundation

Participating Organizations


A total of 183 nonprofit organizations are represented in the final report. Organizations reported data for 345 total management and executive positions, representing 7 different position categories.

Overview of Participating Nonprofits


Not all nonprofits are created equal. It is also difficult to directly compare nonprofits from differing service areas when assessing salary and benefits. An arts and culture organization has a very different mis-sion and serves in a much different capacity than a human service organization concentrating on home-lessness, for example.

How do you compare salaries across nonprofit sectors? One way is to make a generalized comparison is to look at budget and staff size regardless of mission and service area. Budget and staff size are the best two universal indicators that all nonprofit organizations can compare when defining the number of executives and the skill level needed to fulfill the mission.

Overview of Participating Nonprofits

183nonprofits represented

345management andexecutive positions

7position categories

Primary Work Classification of Participating Organizations

Primary Work Classification Count Percent of Total

Human or Social Services 96 52% Arts, Culture, and Humanities 23 13% Community Development 16 9% Health, Disease, Disorders 16 9% Private or Community Foundation 9 5% United Ways and United Funds 9 5% Recreation, Sports, Leisure, Athletics 5 3% Animal-‐ related 4 2% Environmental 3 2% Other 2 1% Grand Total 183 100%

Breakdown of Human or Social Services Organizations

Secondary Work Classification Count

Percent of Human Services

Percent of Total

Youth Development 18 20% 10% Disability Services 12 12% 7% Mental Health or Crisis Intervention 8 8% 4% Older Adults 8 8% 4% Alliance or Advocacy Organizations 8 8% 4% Employment and Job Related 7 7% 4% Child Day Care 6 6% 3% Residential Services 5 5% 3% Homelessness, Shelter 5 5% 3% Community or Multi-‐Service Center 5 5% 3% Domestic Violence 4 4% 2% Food Services, Banks, and Pantries 3 3% 2% Public Safety, Disaster Preparedness and Relief 2 2% 1% Other 5 5% 3% Grand Total 96 100% 53%


Methodology

The 2012 survey tool was refined from the tool used in the 2012 Central Indiana Nonprofit Salary Survey with a goal keeping this first survey effort short and easy to complete. The survey was limited to seven key positions with the hope that meaning participation would provide useful information for comparison in those roles.

The 2012 survey invitation list included organization contacts from several sources. A mailing list was assembled by the Community Foundation of Greater Fort Wayne and United Way of Allen County in co-ordination with the community foundations and United Ways across the eleven county area. The eleven counties included in this survey are Adams, Allen, DeKalb, Huntington, Kosciusko, LaGrange, Noble, Steu-ben, Wabash, Wells, and Whitley.

This list of about 400 organizations received a postcard invitation followed by email invitations to partici-pate that contained a web link, unique to them, to participate in the survey via Survey Monkey. Anyone who did not receive a link directly was invited to contact Charitable Advisors to receive their survey link.

The survey was promoted through many channels to increase participation. In addition to the postcards and e-mails sent directly, we want to thank the Paul Clarke Nonprofit Resource Center, Indiana Nonprofit Resource Network, and area community foundations and United Ways and Funds for their assistance. Charitable Advisors also promoted the survey several times via its weekly email, the Indianapolis Not-for-Profit News, which reaches more than 14,000 weekly subscribers (www.NotforProfitNews.com).


To be included in the final report, the response had to be from a nonprofit organization in one of eleven counties of northeast Indiana - Adams, Allen, DeKalb, Huntington, Kosciusko, LaGrange, Noble, Steuben, Wabash, Wells, and Whitley counties. All 501(c)3 nonprofits were eligible except colleges/universities, hospitals, and schools. Organizations were required to have at least one paid employee, full or part-time, that fit into one of the seven jobs descriptions in the survey. More than 200 responses were received and reviewed to finish with our final list of 183.

We contracted with Lisa Weidekamp, a database expert, to clean and ana-lyze the survey information. The data was carefully reviewed for duplica-tion and completeness. Dozens of responses were removed because they were incomplete. We contacted any respondent that listed a salary that appeared too low to clarify if that response represented a part-time or full-time position.

Care was taken in not breaking out detail when there were less than 4 responses in a category. When 3 or fewer organizations reported data, the detail was not broken out on the report to maintain survey participant anonymity. When 4 or 5 organizations reported data - average, minimum, median, and maximum are reported, but quartiles are omitted. The final report reflect October 2012 responses.

Cleaning the Data/Report Design

Lisa Weidekamp, MSWLisa has more than 10 years of experience working for nonprofits, specifically evaluation, data management, and project management. This is the second year she has worked with Charitable Advisors on the Central Indiana Nonprofit Salary Survey.317-750-9598 [email protected]


Nonprofit leaders are a resilient, optimistic group by nature. The past four years have tested even the most robust non-profits and forced them to make critical decisions about who they serve and how they spend the dollars that donors and funders entrust to them. As we continue the slow road to economic recovery, skilled leadership becomes ever more important – both at the board and staff level.

A key goal of this Northeast Indiana Nonprofit Salary Survey Report is to assist the local nonprofit sector in keeping the talent that we have and recruiting additional staff leader-ship. In order to add some context to this salary informa-tion, we asked a few other questions that we felt might be of interest to the users of the survey.

State of the Sector• 34% of respondents expect higher revenue in 2013 than 2012; 54% expect 2013 revenue to be flat with 2012; only 13% anticipate a decrease.

• More than 40% of participating nonprofits do not plan to increase wages in 2013. Of the almost 60% who are antici-pating increases, most are in the 1% -3% range.

• 80% of respondent boards have between 6 and 20 mem-bers with 11-15 being the most common range.


State of the Sector


How to Read the TablesThe tables in orange contain findings from all organizations that reported data for this position, by total staff, annual budget, and primary work classification. The following table(s), in blue, contain findings by primary work classification (like Human or Social Services) and annual budget, when sufficient data was received.

When 3 or fewer organizations reported data, the finding is excluded to maintain survey participant anonymity. This will cause totals of ‘org count’ to vary from the number of total organizations reported. When 4 or 5 organizations reported data average, minimum, median, and maximum are reported, but quartiles are omitted.

Definitions:

• Organization Count – number of organizations that reported a salary for that position

• Average – sum of all responses divided by # of responses (can be distorted by very high or very low salaries)

• Minimum and maximum – lowest and highest responses received for the position.

• First Quartile – greater than 25% of the responses

• Median (also Second Quartile) – same number of responses greater than as less than

• Third Quartile – greater than 75% of the responses


Salary Overview for All PositionsThe table below shows all 7 executive management positions. Each position shows the average salary, the minimum or lowest salary for that position, the first quartile of the salary range, the median, the third quartile of salary range and the maximum or highest paid salary for that position. Presenting the salaries in this way provides you with a snapshot of the full range of salaries for each position.

Position Org

Count Average Min First

Quartile Median Third

Quartile Max Executive Director/ President/

Chief Executive Officer 157 $64,661 $20,000 $44,500 $55,000 $80,000 $196,000

Chief Operating Officer (COO) or Deputy Director

26 $55,332 $27,040 $36,125 $50,613 $73,698 $93,600

VP/ Director of Programs (Excludes Direct Service Staff)

62 $47,044 $21,000 $37,400 $45,000 $53,500 $90,000

CFO/ Controller (Excludes Accountant and Bookkeeper)

34 $59,936 $30,000 $45,500 $54,750 $70,000 $120,000

VP/ Director of Development (May Also Include Marketing Responsibilities)

35 $53,049 $27,000 $41,500 $49,150 $64,000 $100,000

VP/ Director of Marketing/ PR (Excludes Marketing or PR Coordinator)

16 $49,397 $24,000 $35,750 $42,500 $65,500 $81,985

VP/Director of Human Resources 15 $54,360 $36,000 $40,500 $53,000 $61,500 $95,000


Executive Director/President/Chief Executive Officer (CEO) | Full-Time


Executive Director/President/Chief Executive Officer (CEO) | Full-Time (Continued)

Executive Director/President/Chief Executive Officer (CEO) | Part-Time


Chief Operating Officer (COO) or Deputy Director | Full-Time All Responses

Position Org



Quartile Max Chief Operating Officer (COO) or Deputy Director 26 $55,332 $27,040 $36,125 $50,613 $73,698 $93,600

by Number of Total Staff

Total Staff Org



Quartile Max 11-‐30 total staff 8 $45,471 $27,040 $35,500 $40,000 $50,548 $73,000 51-‐99 total staff 4 $61,805 $33,000 ― $63,500 ― $87,220 100 or more total staff 4 $85,363 $80,000 ― $83,925 ― $93,600

by Annual Budget

Annual Budget Org



Quartile Max $250,000 to $999,000 10 $38,227 $27,040 $32,250 $36,750 $45,000 $50,000 $1 Million to $4.9 Million 9 $66,248 $37,000 $58,000 $64,500 $75,790 $87,220

by Primary Work Classification

Primary Work Classification Org



Quartile Max Human or Social Services 17 $59,922 $27,040 $45,000 $58,000 $80,000 $93,600

Human or Social Services by Annual Budget

Annual Budget Org



Quartile Max $250,000 to $999,000 6 $40,629 $27,040 $34,500 $45,000 $45,548 $50,000 $1 Million to $4.9 Million 7 $65,064 $37,000 $54,613 $64,000 $79,000 $87,220


VP/Director of Programs (Excludes Direct Service Staff) |

Full-Time All Responses

Position Org



Quartile Max VP/Director of Programs (Excludes Direct

Service Staff) 62 $47,044 $21,000 $37,400 $45,000 $53,500 $90,000 by Number of Total Staff

Total Staff Org



Quartile Max 1-‐5 total staff 13 $35,657 $21,000 $27,000 $38,000 $42,295 $49,500 6-‐10 total staff 8 $42,702 $25,000 $38,833 $42,500 $48,480 $58,000 11-‐30 total staff 19 $43,862 $26,000 $40,000 $44,500 $48,500 $65,000 31-‐50 total staff 6 $48,607 $31,000 $37,900 $40,900 $60,700 $74,642 51-‐99 total staff 7 $58,406 $32,000 $39,500 $60,000 $75,816 $86,213 100 or more total staff 9 $64,189 $41,000 $52,000 $65,000 $75,000 $90,000

by Annual Budget

Annual Budget Org



Quartile Max Less than $250,000 11 $31,961 $21,000 $25,500 $29,000 $38,625 $48,000 $250,000 to $999,000 24 $42,395 $27,000 $40,000 $43,500 $47,000 $58,000 $1 Million to $4.9 Million 20 $53,649 $31,000 $40,750 $46,000 $66,724 $90,000 $5 Million to $9.9 Million 4 $70,000 $55,000 ― $70,000 ― $85,000

by Primary Work Classification




Quartile Max Human or Social Services 37 $48,894 $25,000 $37,200 $47,000 $58,000 $86,213 Arts, Culture, and Humanities 7 $38,756 $21,000 $29,000 $41,800 $44,000 $62,494 Community Development 4 $36,000 $24,000 ― $33,000 ― $47,000 Health, Disease, Disorders 6 $57,136 $38,000 $39,863 $45,000 $76,250 $90,000

by Human or Social Services by Annual Budget

Annual Budget Org



Quartile Max Less than $250,000 6 $31,583 $25,000 $26,000 $27,500 $33,875 $48,000 $250,000 to $999,000 15 $44,013 $27,000 $40,000 $45,000 $49,710 $58,000 $1 Million to $4.9 Million 11 $57,699 $35,000 $43,000 $60,000 $68,500 $86,213

by Arts, Culture, and Humanities by Annual Budget

Annual Budget Org



Quartile Max $1 Million to $4.9 Million 4 $45,074 $31,000 ― $43,400 ― $62,494


CFO/Controller (Excludes Accountant and Bookkeeper) | Full-Time

All Responses

Position Org



Quartile Max CFO/Controller (Excludes Accountant and

Bookkeeper) 34 $59,936 $30,000 $45,500 $54,750 $70,000 $120,000 by Number of Total Staff

Total Staff Org



Quartile Max 11-‐30 total staff 10 $48,918 $30,000 $39,750 $45,000 $56,350 $74,651 31-‐50 total staff 5 $50,910 $40,000 $50,100 $52,270 $54,500 $57,682 51-‐99 total staff 6 $60,429 $45,000 $49,644 $58,787 $71,250 $78,000 100 or more total staff 9 $79,732 $54,184 $69,400 $75,000 $85,000 $120,000 by Annual Budget

Annual Budget Org



Quartile Max $250,000 to $999,000 8 $47,041 $34,000 $41,250 $44,964 $48,850 $70,000 $1 Million to $4.9 Million 15 $60,075 $30,000 $48,550 $54,500 $66,341 $120,000 $5 Million to $9.9 Million 6 $65,775 $45,000 $56,250 $67,326 $74,913 $85,000 Greater than $10 Million 5 $73,142 $54,184 $68,128 $69,400 $70,000 $104,000 by Primary Work Classification




Quartile Max Human or Social Services 21 $57,497 $30,000 $45,000 $54,500 $70,000 $104,000 Arts, Culture, and Humanities 4 $62,168 $52,270 ― $54,400 ― $85,000 Private or Community Foundation 5 $56,411 $44,928 $47,000 $52,000 $68,128 $70,000 by Human or Social Services and Annual Budget

Annual Budget Org



Quartile Max $250,000 to $999,000 4 $40,000 $34,000 ― $40,500 ― $45,000 $1 Million to $4.9 Million 10 $57,486 $30,000 $47,775 $56,037 $70,671 $85,000 Greater than $10 Million 4 $74,396 $54,184 ― $69,700 ― $104,000


VP/Director of Development (May Also Include Marketing Responsibilities) | Full-Time All Responses

Position Org



Quartile Max VP/Director of Development (May Also Include Marketing Responsibilities) 35 $53,049 $27,000 $41,500 $49,150 $64,000 $100,000

by Number of Total Staff

Total Staff Org



Quartile Max 1-‐5 total staff 4 $39,250 $27,000 ― $30,000 ― $70,000 11-‐30 total staff 9 $48,208 $32,000 $41,000 $43,000 $47,000 $83,500 31-‐50 total staff 7 $48,555 $31,000 $46,142 $49,150 $51,224 $65,000 51-‐99 total staff 4 $49,352 $38,000 ― $48,704 ― $62,000 100 or more total staff 8 $72,470 $56,160 $60,750 $71,000 $80,150 $100,000 by Annual Budget

Annual Budget Org



Quartile Max $250,000 to $999,000 6 $44,797 $30,000 $35,710 $44,000 $46,500 $70,500 $1 Million to $4.9 Million 18 $51,280 $31,000 $41,250 $47,653 $55,344 $100,000 $5 Million to $9.9 Million 5 $67,257 $48,784 $62,000 $64,000 $78,000 $83,500 by Primary Work Classification




Quartile Max Human or Social Services 18 $52,314 $27,000 $43,875 $49,352 $60,750 $80,600 Arts, Culture, and Humanities 5 $51,254 $31,000 $44,375 $48,635 $64,000 $64,000 Health, Disease, Disorders 6 $60,964 $42,000 $44,446 $55,392 $68,000 $100,000 by Human or Social Services and Annual Budget

Annual Budget Org



Quartile Max $1 Million to $4.9 Million 10 $50,977 $32,000 $44,164 $49,352 $54,933 $80,000 by Arts, Culture, and Humanities and Annual Budget

Annual Budget Org





VP/Director of Marketing/PR (Excludes Marketing or PR

Coordinator) | Full-Time All Responses

Position Org



Quartile Max VP/Director of Marketing/PR (Excludes

Marketing or PR Coordinator) 16 $49,397 $24,000 $35,750 $42,500 $65,500 $81,985 by Number of Total Staff

Total Staff Org



Quartile Max 11-‐30 total staff 6 $49,866 $24,000 $33,425 $41,155 $70,328 $81,985 by Annual Budget

Annual Budget Org



Quartile Max $250,000 to $999,000 5 $36,980 $30,900 $35,000 $36,000 $41,000 $42,000 $1 Million to $4.9 Million 8 $51,809 $24,000 $38,983 $43,579 $72,500 $80,000 by Primary Work Classification




Quartile Max Human or Social Services 6 $49,167 $24,000 $37,500 $42,500 $63,250 $80,000 Arts, Culture, and Humanities 4 $40,342 $30,900 ― $41,310 ― $45,000 by Human or Social Services and Annual Budget

Annual Budget Org





VP/Director of Human Resources | Full-Time

All Responses

Position Org



Quartile Max VP/Director of Human Resources 15 $54,360 $36,000 $40,500 $53,000 $61,500 $95,000 by Number of Total Staff

Total Staff Org



Quartile Max 100 or more total staff 8 $61,000 $42,000 $53,750 $59,500 $62,750 $95,000 by Annual Budget

Annual Budget Org



Quartile Max $1 Million to $4.9 Million 6 $52,500 $36,000 $38,250 $40,500 $59,250 $95,000 by Primary Work Classification




Quartile Max Human or Social Services 11 $51,491 $36,400 $43,500 $53,000 $59,500 $65,000


1. Executive Director/President/Chief Executive Officer (CEO)

Advises, makes recommendations to and assists in for-mulating policies for the Board of Directors. Implements Board policies and directives. Oversees all agency’s daily activities. May represent the agency to the public. Re-ports to the Board of Directors. May be called Chief Pro-fessional Officer (CPO).

2. Chief Operating Officer (COO) or Deputy Director

Performs highly advanced (senior-level) administration and managerial work. Works closely with the Executive Director/Chief Executive Officer (CEO) on the day-to-day operations of the agency. Responsible for the implemen-tation of policies and procedures set by the Executive Di-rector/Chief Executive Officer (CEO). Serves as the acting President/CEO in the absence of the CEO. May direct the daily activities of one or more of the agency’s operating units. May have subordinate area, regional or district managers.

3. VP/Director of Programs (Excludes Direct Service Staff)

Directs various activities of a specific geographical area or division of the agency. May manage staff, programs and/or facilities and work with volunteers and local com-munity leaders. May fundraise on a limited basis.

4. CFO/Controller (Excludes Accountant and Bookkeeper)

Responsible for developing financial policies and proce-dures and directing their implementation. May also over-see managers in IT, Facilities, HR and other operational

Job Function. What People Do.

functions. Directs the agency’s accounting staff. Develops and maintains planning and budgeting functions. Analyzes and interprets fiscal trends. Prepares financial management reports and procedures.

5. VP/Director of Development (May Also Include Marketing Responsibilities)

Directs and coordinates some or all of the agency’s fund-raising programs. Identifies and cultivates funding sources for operating and capital funds. Supervises development staff. Confers with Board Members and/or Executive Direc-tor/CEO about fundraising efforts.

6. VP/Director of Marketing/PR (Excludes Marketing or PR Coordinator)

Directs and coordinates all marketing and PR activities, in-cluding market research, product development, sales pro-motion, advertising and market development. Develops, coordinates, and administers all public relations and com-munications policies. Communicates new programs, devel-opments, promotions and other goodwill information to the media through written, printed and photographed ma-terial.

7. VP/Director of Human Resources

Develops and organizes all personnel activities. Oversees employee benefits. Implements employee recruitment, se-lection, compensation, training and development programs.


Benefits Offered


Supplemental Benefits


Board Café, by Jan Masaoka, August 13, 2010 Nonprofit board members are often puzzled when it comes to setting the salary of the executive director. On one hand, we want to keep our talented staff; on the other hand, we know the budget is tight. Some legal and practical guidelines:

It’s maddening and ironic that the press focuses on the extremely rare cases of high salaries for nonprofit executives, when salaries in nonprofits are typically 20% - 40% less than their counterparts in foundations, local government, and the business sector. Mistaken public perception that nonprofit salaries are high has even led to New Jersey now limiting the amount of state funds that can be spent on nonprofit executive salaries.

But despite the press, community nonprofit boards are more frequently worried that they are paying their executives too little, a feeling shared by many executive directors themselves.

Unfortunately, survey data is often of little use, because of small sample sizes, samples weighted towards universities, and the reality that all surveys show enormous variation in salaries for nonprofits of the same fields and sizes. An

Appendix

How Much to Pay the Executive Director?

example of the inconsistency of data: one recent national survey showed average executive director salary to be $60,000, while another reported $158,000. “Under $50,000, people aren’t going to move,” says Karen Beavor of the Georgia Center for Nonprofits, publisher of the online nonprofit jobs site Opportunity Knocks. “But any search at $100K, $150K is recruiting from a national pool. Look at a number of surveys, including both national and local.”

On the web, salaries for “key employees” who are paid $100,000 a year or more are posted at www.Guidestar.org in the Forms 990 that U.S. nonprofits (with annual revenues of $25,000 or more) are required to file. (If the executive is on the board the salary will be in the board section.) In other words, by going to this website anyone can find out the salary of the top staff in most nonprofits.

Legal guidelinesAs part of preventing “excess compensation,” U.S. federal law (Prop. Regs. Sec. 53.4958-4) notes that nonprofits should pay “reasonable compensation,” defined as “an amount as would ordinarily be paid for like services by like enterprises under like circumstances.” Not exactly the clearest statement. Regrettably, it’s not hard to find law firms that always seem able to discover that the proposed compensation fits these imprecise guidelines. We know one nonprofit with five staff that pays its CEO $375,000 . . . blessed by an expensive legal report.

In California, nonprofits with non-governmental income of $2 million or more are now required to have the board approve the salaries of the CEO/executive director as well as that of the CFO. A good idea in any event, but with a median salary of $75,000 for nonprofits with budgets between $1 million and $2.5 million, excess compensation hardly seems like the biggest problem.



Men still get paid more at the same size nonprofit (surprised?)

More disturbing than generally low salaries are the gender differences in salary. Despite the predominance of women in nonprofit executive positions around the country, male executives make significantly more than their female colleagues do. This is true at five of the six sizes of organizations studied. The gender gap is especially wide at agencies with budgets of more than $5 million. In one study, the average salary nationally for women executives of nonprofits with budgets between $5 million to $10 million was $82,314. At this same budget size, the average salary for men was $98,739.

Relative to whose salary?In this era when people discuss their sex lives on TV talk shows, information about salaries is still very, very private. Most of us don’t know the salaries of our siblings, our neighbors, our colleagues, our best friends. As a result of such a meager data set, people fall back on our own salaries as the main comparison.

To a board member who makes $40K a year, paying the executive director $90K a year seems exorbitant and unnecessary. A board member on the same board who makes $300K a year may feel that $90K is too low to get anybody competent. And to another board member with a government job, the $90K might seem too high, but this board member hasn’t taken into account that she’ll get 60% of her salary every year for the rest of her life once she retires . . . while the executive director will get 0 when she retires.

Executive director salaries are often very close to the salaries of other employees, in a phenomenon called “compressed salaries.” In contrast to Walmart, where the CEO makes more in an hour than low-level employees make in a year, an executive who makes $75,000 is often making just twice that of the lowest paid employee.

Why executive directors are so bad at asking for raisesOne executive director told us about steeling herself mentally for an upcoming discussion with the board about

her salary. She was determined to ask for a 10% raise. But when she got to the meeting, the board told her they were giving her a 25% raise! She was thrilled! But as she was driving home, it hit her: Now I have to RAISE the money.

Because the executive director’s salary typically acts as a ceiling, keeping the executive director’s salary low also serves to keep other salaries low. Executives know that a raise in their own salary of, say, $10,000, will mean $50,000 in raises across all other positions . . . $60,000 more to raise next year.

This question of how much to pay usually arises in one of two quite different settings: when hiring a new executive director and when discussing a raise for a current executive director. When hiring a new ED, boards typically choose a salary designed to attract strong candidates. Later, the same board may end up ignoring salary as a retention tool, and instead focus only on percentage increases.

Some of the objectives and factors to take into consideration:

Competitive: The executive director’s salary should make the organization competitive in the market for talent. To where is your executive director most likely to leave? From where are you most likely to recruit your next ED? If the answer is a similar nonprofit, look at the salaries of comparable nonprofits in the area. (But keep in mind that salaries at very similar nonprofits can be different by factors of 10 or more.) If the answer is government, look at the kinds of positions your ED might take, and what salary and benefits are being offered.

Fair internally: The salary is fair in the context of other salaries in the organization. How much are other employ-ees making? How distant or how close a spread do you think is appropriate?

Future-looking and strategic: The ED’s salary for the coming year reflects the contribution we expect the ED to make this coming year, not as a reward for past contributions. Performance in the last year gives us the best clues about how well the ED will do next year, but this



year’s salary is not a reward for last year’s work. If an executive is underpaid, recruiting his successor will be more difficult within the budget.

Even more importantly, if all wages have been kept under a low ceiling, you may find it difficult to recruit and keep a qualified, committed workforce. There are many more reasons than salary why people go to work at a nonprofit, but low salaries narrow the pool of applicants to those who can afford low salaries . . . often inadvertently meaning that only upper middle class people can afford to work there.

Sending a message: The ED’s salary should send the appropriate signal to the ED, to the staff, and to others. Words are important, but so is money. Praising an executive director while keeping her compensation flat ends up conveying a message that the board doesn’t really value her work. In the same way, giving an inadequate executive a raise while quietly considering her termination sends a mixed signal you may later hear about in a wrongful termination lawsuit.

Don’t over-pay a so-so executive because you’re a large or prestigious organization. Over-paying a so-so executive can encourage “cooking the books,” and an over-paid person will fight more aggressively against termination.

Within the budget: Neither the ED’s salary -- or other salaries -- should cause undue financial stress on the organization. The board has a responsibility to keep the total costs of the organization (including the executive director’s salary) in an affordable range. Sometimes when hiring a new director it may be appropriate to invest “venture capital” to offer a higher salary. In an experiment by the Neighborhood Investment Corporation, $5,000 and $10,000 grants were made to local groups to raise the salary offered to a new executive. The theory was that by offering more, a better qualified person could be hired and such a person could raise enough money to meet the new costs as well as bring up all salaries. In some cases, boards did succeed in hiring at a new level of competence and the model was proven correct. But in other cases, boards still were unable to attract talent with which they were satisfied.

Consider other aspects of compensation: Retirement benefits, an extra week of vacation, dental insurance, or other benefits are important to attracting and keeping talent. “We’re even seeing people pay more attention to benefits than to salary,” commented Regina Birdsell of the Southern California Center for Nonprofit Management, which maintains a job site and publishes wage and benefits surveys. “Be sure to put retirement benefits, longer vacations, flexible work hours into your job advertisement.”

Whatever you pay your executive director, it’s a good idea to have the salary reviewed and approved by the board annually, preferably in the context of performance evaluation and the budget for the upcoming year. The simple step of assigning one person to look up the salaries of comparable organizations can set a helpful context for the board.

Given the importance of the executive director to the organization’s success, boards often spend very little time thinking about his or her salary, and perhaps even less talking it over with the executive. Setting the top salaries is a strategic choice that boards should not be shy about bringing into the open and discussing with candor.

This article/excerpt is reprinted with permission from Blue Avocado, an online magazine for nonprofits. Subscribe free by sending an email to [email protected] or at www.blueavocado.org.


Subscribe FREE Join nearly 15,000 Indiana nonprofit staff and board leaders.

Local and National Nonprofit News Post your Job Openings for only $150 Trainings and Resources Subscribe, submit news, or see recent editions, at www.NotforProfitNews.com

Submit job postings to [email protected]

I eagerly await the arrival of the NFP News in my inbox. The News does a great job of keeping me informed on the latest in the community -Reader Survey Response

Leadership Transition · Planning · Not-for-Profit NewsIndianapolis Not-For-Profit News


Leadership Transition · Planning · Not-for-Profit News

Leadership TransitionThe departure of the Exective Director is a critical time for most nonprofit organizations, especially for long-term executives or organizations in turmoil. Contact Charitable Advisors for customized support for your board and staff team through a successful transition:

- Reflection and Organizational Assessment- Recruitment Preparation and Planning- Search Committee Support- Promotion and Resume Administration

Strong Nonprofits

equal Strong

Communities

(317) 752-7153 [email protected] www.CharitableAdvisors.com

2012 Northeast Indiana Nonprofit Salary Report · 2012 Northeast Indiana Nonprofit Salary ... spent...

Documents

Transcript of 2012 Northeast Indiana Nonprofit Salary Report · 2012 Northeast Indiana Nonprofit Salary ... spent...