How the Information for The Chronicle’s Salary Survey Was Compiled

This is the ninth year that The Chronicle has gathered information about what the nation’s

largest non-profit organizations pay their top executives. This year, 251 groups were asked to fill out the survey and provide supporting information from their informational tax returns and audited financial statements.

For the first time, The Chronicle also asked for a detailed breakdown of the financial data they report to the Internal Revenue Service, and about two-thirds of the groups — 164 — agreed to provide it.

An analysis of those data shows what percentage of organizations gave bonuses to their top executives, supplemented their pensions with deferred compensation, or made payments toward such costs as housing, automobiles, or a variety of other perks.

Organizations exercised wide discretion in accounting for such payments to the I.R.S. on their Forms 990 (or Forms 990-PF for private foundations). While most counted bonuses as compensation, one — Baylor College of Medicine — listed the payment under benefits. Pensions also showed up under either category, as did deferred compensation. Reimbursement for the use of an automobile showed up under both compensation and expense allowances, as did payments for housing expenses.

Aside from the 164 groups that filled out the survey (and also sent either their Form 990 or their audited financial statements), 84 sent just copies of the Form 990.

Although religious groups are not required to file tax returns, several agreed to provide The Chronicle with the information requested. Three religious groups — the Catholic Foreign Mission Society of America, the Jewish Theological Seminary, and the Presbyterian Church (U.S.A.) Foundation — declined.

Another religious group — the Salvation Army — agreed to provide all information about its chief executive and to report how much its other highest-paid employee received, but declined to give the name of that employee.

Eight organizations had not completed their tax returns for fiscal 1999, so the information on their top officials’ compensation is based on 1998 data.

The survey seeks information about each organization’s chief executive and its other highest-paid employees. The Chronicle asks groups to provide information about the employee whose regular compensation is the highest, rather than including people whose pay for the year was inflated by retirement or severance packages.

The groups in the salary survey ranked highest in their categories on the 1999 Philanthropy 400, The Chronicle’s annual list of the charities that raise the most money from private sources.

Several charities that were not included on the 400 listing were also asked to provide information because in some categories — such as the arts and public affairs — only a handful of organizations raise enough to make the list. Those organizations added to the survey were the ones that raised the next-highest amounts. The salary survey also includes officials of the 20 wealthiest private foundations in the United States.

The Chronicle’s salary survey was directed by Harvy Lipman with the assistance of Marni Larose and Martha Voelz.