Salaries for Nonprofit Leaders Rise Sharply

Salaries for nonprofit executives have increased by up to 50 percent since 2000 as competition for talent has intensified, reports The Wall Street Journal.

Headhunting companies that recruit nonprofit leaders say that salaries exceeding $200,000 are now common, in part because it is much more difficult than in the past to retain talented leaders. Experts also say a lack of internal candidates for top jobs has forced nonprofit groups to seek external, and often more expensive, candidates.

Not all groups are raising salaries, however. Some offer handsome bonuses and others flexible work schedules.

Nevertheless, the article warns that increasing compensation can have a negative effect if potential donors view top executives as being too well compensated. In addition, the Internal Revenue Service is scrutinizing nonprofit executive pay more closely than in the past, the newspaper says.

Read The Chronicle of Philanthropy’s annual survey of executive compensation and view a database of salaries and bonuses for hundreds of leaders.

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