How The Chronicle’s 2002 Survey of Nonprofit Compensation Was Compiled

The Chronicle‘s 11th annual salary survey examines what the nation’s largest nonprofit

organizations pay their top officials. This year’s survey gathered data from 282 groups.

Officials of nonprofit groups 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 2001 fiscal year, or 2002 for those with fiscal years ending in January, February, or March.

The survey form requested information about each organization’s chief executive. It also asked for information about the employee other than the chief executive whose compensation is the highest in the organization. The survey excludes those whose compensation was affected by a one-time payment, such as a severance or pension payout.

Thirty-one organizations received a filing extension from the Internal Revenue Service for the 2001 or 2002 fiscal year, so the information on their top officials’ compensation is based on 2000 or 2001 data.

Three religious groups — Catholic Foreign Mission Society of America (Maryknoll Fathers and Brothers), Presbyterian Church (U.S.A.) Foundation, and St. Labre Indian School — declined to provide information, and fiscal 2000 data were not available. Religious organizations do not have to file informational returns with the IRS.

Fiscal 2000 data were used for two religious organizations: Campus Crusade for Christ International and The Navigators.

For the third year in a row, the Salvation Army, also a religious organization, provided information for its highest-paid employee other than the chief executive. However, it did not provide the name of that employee.

Detailed Information

The survey form asked for detailed 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 their top officials.

The form also asked for total income or total assets for the organizations. The total-income figure is equivalent to Line 12 on the Form 990.

In arriving at figures for total income, The Chronicle did not count the value of donated services reported by the American Cancer Society and Operation Smile, nor did it count unrealized gains or losses.

Following guidance set forth by the IRS in a private-letter ruling in 2001, The Chronicle includes in income figures for United Ways funds that donors have earmarked for specific groups.

The organizations in the salary survey are those that ranked the highest in their categories on the 2001 Philanthropy 400, The Chronicle‘s annual list of the nonprofit organizations that raise the most money from private sources.

Several charities that were not in the 400 listing were also asked to provide salary information because in some categories only a handful of organizations raise enough to make the list. Organizations added to the survey were ones that raised the next-highest amounts.

The salary survey also includes information about officials from the 20 wealthiest private foundations and from the 20 wealthiest operating foundations.

The Chronicle‘s salary survey was directed by Martha Voelz with assistance from Marni D. Larose and Harvy Lipman.