October 3, 2010 | Read Time: 2 minutes
To determine salary trends in the nonprofit world, The Chronicle sought compensation data from charities on the Philanthropy 400, The Chronicle’s annual list of charities that raise the most money in private donations. It also sought information from 50 of the nation’s wealthiest foundations.
The Chronicle asked each organization to answer a questionnaire and provide its most recent Form 990, the informational tax return the Internal Revenue Service requires charities to file annually, or its Form 990-PF, the equivalent return for grant makers.
The Form 990 collects a broad array of information on compensation and benefits, and The Chronicle’s questionnaire asks for more detail, such as the amount awarded in bonuses and other payments.
Due to one-time circumstances, such as a performance bonus or other payments, it is often difficult to compare year-to-year information even of the same individual over time.
The Chronicle gathered information on an organization’s top official, such as the chief executive, president, or executive director, and the highest-paid employee other than the top executive.
Employees whose compensation was inflated due to a one-time payment, such as severance or a pension payout, were excluded from the mix.
Data Will Be Updated
Due to changes in the Form 990 that took effect with the 2008 tax year, many organizations that operate on a fiscal year were unable to provide calendar-year 2009 pay data. Their 2009 pay information won’t appear until they file their Form 990 for the fiscal year ending in 2010, which they generally don’t do until a few months after the close of the fiscal year.
Data from additional organizations will be presented in a future edition of The Chronicle, when more organizations’ 2009 compensation information becomes available.
The Chronicle’s spot check of salaries was compiled by Noelle Barton, Marisa López-Rivera, and Alex Richards, with assistance from Emma L. Carew, Jon Hood, and Alissa Moen.
