How The Chronicle Compiled Its Survey of Nonprofit Executive Compensation

The Chronicle’s annual report on nonprofit pay is based on data from charities that ranked highest on its Philanthropy 400, the annual list of nonprofits that raise the most from private sources, as well as data from the nation’s wealthiest grant makers.

Organizations were asked to complete a survey and provide their most recent informational tax forms, including sections where they are required to disclose details about compensation provided to their top officials.

The survey also asked for details on bonuses and benefits, which the Internal Revenue Service does not require charities and foundations to disclose.

Because of IRS tax rules, organizations must report deferred compensation for some employees in a lump sum, even though that compensation has been accrued over several years. As a result, compensation totals for some employees may appear larger than what they actually earned in a single year, and readers should keep that in mind when reviewing the information.

Some organizations declined to give 2012 figures because they had not yet filed the tax return containing compensation data for that year. They are not required by law to disclose the data before the tax forms are filed. Most charities will not file their forms with 2012 pay information until 2014. In Touch Ministries failed to produce its most recent Form 990 for use in this report. The Chronicle has reported that situation to the IRS.