How The Chronicle’s Pay Survey Was Done

The Chronicle’s 12th annual salary survey examines what the nation’s largest nonprofit organizations

pay their top officials. This year’s survey gathered data from 329 charities and foundations.

The groups in the salary survey are those that ranked highest in their categories on the 2002 Philanthropy 400, The Chronicle’s annual list of the charities that raise the most money from private sources. Several charities that were not on the 400 listing were also asked to provide information because in some categories only a handful of organizations raised enough to make the list. Organizations added to the survey were ones that raised the next-highest amounts after those in the Philanthropy 400.

In this year’s survey, The Chronicle also gathered salary information from 15 organizations that represent charities and foundations or monitor their activities.

In addition, The Chronicle gathered compensation figures for the 50 wealthiest foundations and the 20 operating foundations that have the highest assets.

Data Sought

Officials of nonprofit organizations were asked to fill out a survey and provide supporting information from their Form 990 informational tax returns and audited financial statements. They were asked to provide information for the 2002 fiscal year, or, if their fiscal years ended in January, February, or March, for 2003.

The survey sought information about each organization’s chief executive and the employee other than the chief executive whose compensation was the highest. The Chronicle also asked organizations to provide information about the employee whose regular compensation was the highest paid, and not someone whose compensation was inflated by a one-time payment, such as a severance or pension payout.

Sixty-six organizations in the survey received permission from the Internal Revenue Service to delay filing their informational tax returns for the 2002 or 2003 fiscal year. However, 31 of those organizations provided their most current compensation information, even though the IRS had given them more time to file their Forms 990. Figures provided for the other 35 groups were based on 2001 or 2002 data. Four religious groups — the Catholic Foreign Mission Society of America (Maryknoll Fathers and Brothers), Life Outreach International, St. Labre Indian School, and Willow Creek Community Church — declined to provide information. Religious organizations do not have to file informational returns with the IRS.

For the fourth year in a row, the Salvation Army, also a religious organization, provided information for its chief executive officer and its highest-paid employee other than chief executive, but did not provide the name of the second official, who was identified as a development director.

The survey form asked for breakdowns of the financial data reported on the Form 990. The breakdowns show how charities report deferred compensation, pensions, housing allowances, and other payments to top officials.

Although the salary survey shows what many top nonprofit officials earn, it does not necessarily include all of the highest earners. Some smaller, less-wealthy nonprofit groups that are not included in the survey may pay their executives more money. Some large organizations, such as medical centers, are not included in the Philanthropy 400 because they raise relatively little in private donations.

Five organizations in the survey listed three or four officials, rather than two. Ayco Charitable Foundation, Carnegie Endowment for International Peace, the Horace W. Goldsmith Foundation, Liliuokalani Trust, and U.S. Charitable Gift Trust all had two or more equally compensated employees who ranked as the highest paid other than the top executive.

The Chronicle’s salary survey was directed by Marni D. Larose with assistance from Stanley W. Krauze and Elizabeth Schwinn.