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Highlights of the 2002 GuideStar Nonprofit Compensation Report

 

GuideStar has recently released its second annual report on compensation in public charities. The 2002 GuideStar Nonprofit Compensation Report, which draws exclusively on fiscal year 2000 Form 990 data from more than 65,000 public charities, examines compensation by gender, 14 job categories, 9 budget categories, and 378 program categories. Information is also reported by state and for 254 metropolitan statistical areas. Below are some highlights of the report.

Gender

As was the case in last year's report, which covered fiscal years 1998 and 1999, women generally earne significantly less than men. Overall, males had median compensation of $74, 609, or 31.2 percent more than the median for females ($56,885). In all job categories, median compensation of males exceeded that of females.

Compensation by Gender and Job Category

  Female Male  
Job Category Number Median Salary Number Median Salary Gender Gap
CEO/Executive Director 23,091 $50,554 29,063 $70,820 40.1%
Top Administrative Position 2,063 $62,099 2,080 $75,443 21.5%
Top Business Position 492 $61,125 673 $74,750 22.3%
Top Development Position 1,357 $68,053 1,568 $78,705 15.7%
Top Education/Training Position 246 $62,754 339 $72,923 16.2%
Top Facilities Position 33 $64,310 343 $69,321 7.8%
Top Financial Position 3,163 $61,716 5,557 $82,040 32.9%
Top Human Resources Position 480 $70,606 605 $90,728 28.5%
Top Legal Position 238 $79,092 489 $89,002 12.5%
Top Marketing Position 335 $70,109 452 $79,695 13.7%
Top Operations Position 904 $75,630 1,650 $94,873 25.4%
Top Program Position 1,137 $59,975 1,426 $65,951 10.0%
Top Public Relations Position 211 $69,387 288 $77,614 11.9%
Top Technology Position 178 $71,096 820 $85,837 20.7%
Source: 2002 GuideStar Nonprofit Compensation Report

To some degree, this disparity can be explained by the difference in the size of organizations at which men and women work. Of the 34,857 females in the report, 48.0 percent worked at organizations with budgets of $1 million or less, whereas only 32.1 percent of males worked at nonprofits of that size. On the high end, 22.9 percent of the females worked at organizations with budgets greater than $5 million, versus 38.5 percent of males. Even when controlling for the size of organization, however, women still earned less. As the table below shows, male CEOs at every budget level out-earned their female counterparts in FY 2000.

Compensation by Gender and Budget Size

  Female Male  
Budget Size Number Median Salary Number Median Salary Gender Gap
$250,000 or less 5,977 $31,159 4,841 $36,274 16.4%
$250,000-$500,000 4,493 $41,487 3,787 $48,863 17.8%
$500,000-$1,000,000 4,182 $52,403 4,253 $60,000 14.5%
$1,000,000-$2,500,000 4,010 $64,953 5,455 $73,805 13.6%
$2,500,000-$5,000,000 1,976 $78,744 3,445 $89,500 13.7%
$5,000,000-$10,000,000 1,267 $91,179 2,793 $105,699 15.9%
$10,000,000-$25,000,000 759 $111,545 2,297 $135,937 21.9%
$25,000,000-$50,000,000 222 $143,188 890 $175,913 22.9%
More than $50,000,000 205 $186,088 1,302 $271,032 45.6%

Source: 2002 GuideStar Nonprofit Compensation Report

Generally, male CEOs also earned more regardless of organization type. In the 114 program/budget categories with sufficient numbers of both gender to make meaningful comparisons, women earned more than men in only 11 categories. In K-12 education organizations with budgets of $250,000 to $500,000, the median compensation for women CEOs was 17.1 percent higher than that for men, the largest disparity in favor of women. The largest difference in favor of males was in hospitals with budgets greater than $50 million, where the median for males was 63.1 percent higher.

Compensation at health-care organizations and higher education institutions was higher than that in the rest of the charitable sector. According to the May 2002 IRS Business Master File, 179 of the 200 largest tax-exempt organizations (measured by revenue) fall into one of these two categories.

Median CEO Compensation for Various Organization Types

Organization Type Greater Than $5,000,000 $1,000,000 - $5,000,000 $500,000 - $1,000,000 Less Than $500,000
Community Health Systems $271,379 $120,523 $83,015 $57,751
University or Technological Institute $189,990 $86,139 N/A N/A
Art Museums $188,621 $91,080 $62,000 $35,303
General Hospitals $184,702 $80,126 N/A N/A
Symphony Orchestras $175,491 $70,035 $47,222 $28,841
Undergraduate Colleges (4-year) $156,159 $77,004 N/A N/A
Natural Resources, Conservation, Protection $153,796 $82,707 $60,425 $40,217
Fundraising Organizations $137,543 $71,115 $46,000 $31,235
Animal Protection, Welfare $128,116 $64,460 $44,618 $28,886
Community Mental Health Centers $106,972 $75,764 $66,100 $49,063
Senior Continuing Care Communities $103,419 $66,150 $46,597 $33,946
Children's, Youth Services $101,834 $69,528 $56,632 $37,500
YMCA/YWCA/YMHA/YWHA $98,278 $73,954 $51,701 $36,156
Community, Neighborhood Development, Improvement $89,540 $70,000 $60,953 $40,130
Human Services—Multipurpose $87,796 $62,191 $48,967 $35,807
Child Day Care $79,732 $60,210 $44,477 $28,801
Food Banks, Food Pantries $66,375 $52,077 $46,789 $32,896

Source: 2002 GuideStar Nonprofit Compensation Report

Median compensation was comparatively low in most human services organizations, ranking in the bottom 20 percent for each budget category. Housing and shelter organizations also ranked low.

Geography

There were sometimes large regional differences in CEO compensation. Salaries paid to CEOs of Mideast and New England nonprofits were highest for every budget size, with compensation in the Plains and Rocky Mountains regions typically the lowest. For example, the median compensation of CEOs at Mideast organizations with budgets of greater than $5 million was 25.7 percent higher than that of CEOs in the Plains region, and 18.1 percent higher than that of CEOs in the Rocky Mountains region.

CEO Compensation by Region and Budget Size

Region $500,000 or Less $500,000 - $1,000,000 $1,000,000 - $5,000,000 Greater Than $5,000,000
Far West $38,000 $56,523 $73,909 $125,000
Great Lakes $36,712 $53,759 $72,059 $123,307
Mideast $39,867 $60,000 $81,660 $138,817
New England $39,524 $57,834 $78,293 $127,308
Plains $35,842 $51,923 $69,409 $110,432
Rocky Mountains $34,805 $51,695 $70,632 $117,595
Southeast $36,044 $53,625 $71,492 $121,329
Southwest $36,000 $51,864 $69,150 $120,789



Far West: AK, CA, HI, NV, OR, WA Great Lakes: IL, IN, MI, OH, WI Mideast: DE, MD, NJ, NY, PA, DC New England: CT, ME, MA, NH, RI, VT Plains: IA, KS, MN, MO, NE, ND, SD Rocky Mountains: CO, ID, MT, UT, WY  Southeast: AL, AR, FL, GA, KY, LA, MS, NC, SC, TN, VA, WV Southwest: AZ, NM, OK, TX

Source: 2002 GuideStar Nonprofit Compensation Report

These figures do not necessarily mean that CEOs in the Plains or Rocky Mountains regions were underpaid. Some of the most expensive places to live in the United States are in the Mideast and New England regions. For example, 46.3 percent of the 13,599 CEOs in the Mideast work in New York, Philadelphia, or Washington, D.C., all of which have a cost of living well above the national average. In contrast, 46.0 percent of the 2,316 CEOs in the Rocky Mountains region work in Denver, Colorado Springs, or Salt Lake City, where the cost of living is closer to the national average.

Mideast and New England CEOs usually didn't fare as well as those in less expensive areas when salaries were adjusted to take cost of living into account. CEOs in the New York City Metropolitan Statistical Area, whose raw median compensation exceeds all areas in the nation other than Washington, D.C., have the lowest median compensation when adjusted for cost of living. Conversely, CEOs in some areas with a lower raw median compensation do comparatively well when cost of living factors are considered. These differences can be quite dramatic. For example, the median compensation for CEOs of Denver nonprofits with budgets between $1 million and $5 million was 12.8 percent less than the median in New York City. When adjusted for cost of living, however, the median compensation in Denver was 69.9 percent higher.

Median CEO Compensation for Selected Metropolitan Areas

  Budget Size
$1,000,000-$5,000,000
Budget Size
Greater Than $5,000,000
MSA Raw Median Adjusted for Cost of Living* Raw Median Adjusted for Cost of Living*
Baltimore, MD $79,383 $79,862 $138,227 $139,061
Boston, MA $86,715 $68,065 $152,182 $119,452
Cleveland, OH $76,430 $74,493 $150,377 $146,566
Denver, CO $80,000 $78,355 $137,592 $134,762
Detroit, MI $74,375 $65,994 $124,959 $110,878
Los Angeles, CA $80,901 $71,784 $148,414 $131,689
New York, NY $91,748 $46,105 $159,663 $80,233
Phoenix, AZ $75,430 $74,831 $117,441 $116,509
San Francisco, CA $79,414 $52,453 $133,746 $88,339
Seattle, WA $71,754 $63,725 $122,606 $108,886
St. Louis, MO $75,756 $78,995 $144,353 $150,525
Washington, DC $102,629 $85,311 $161,755 $134,460

*Cost of living data from Dowden & Co.
Source: 2002 GuideStar Nonprofit Compensation Report

suzanne-coffman-150x150.jpgThe preceding post is by Suzanne Coffman, GuideStar’s editorial director. See more of Suzanne’s sector findings and musings on philanthropy here on our blog. 

Topics: GuideStar Nonprofit Compensation Report
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