N.Y. Nonprofit Groups Gave More Raises in 2003, Survey Finds

More nonprofit groups in the New York area gave raises to their employees last year than did so in 2002,

with most of the raises hovering between 2 and 5 percent, according to a new survey of nonprofit employers. Seventy-nine percent of nonprofit employers surveyed awarded increases, up from 66 percent in 2002, according to Professionals for NonProfits, a company in New York and Washington that helps nonprofit groups find permanent and temporary workers.

Seventy-one percent of respondents expect to increase staff salaries in 2004, says Gayle A. Brandel, the company’s president.

The survey found that salary ranges varied more widely last year than in 2002. Reduced turnover kept salaries lower in some organizations, while other nonprofit groups found it necessary to increase salaries to bring in experienced and talented new hires, according to Ms. Brandel.

Nonprofit groups paying salaries on the low end of the range for any staff position may soon need to raise salaries to compete for qualified workers, Ms. Brandel says. Of the 685 employers surveyed, 318 said they expect to hire more staff members in 2004, according to the survey.

Fund raising in particular is an area where nonprofit employers compete vigorously with each other, says Ms. Brandel. Of the 318 respondents expecting to hire new workers this year, 102 of them anticipate hiring fund raisers.

The company surveyed arts organizations, health-care groups, private schools, and religious and social-service organizations regarding jobs in six areas: management and administration; finance; fund raising; communications, public relations, and marketing; programs and education; and information-technology and database management. This was the first year that information-technology jobs were included in the annual study.

More employers reported giving merit raises and cash bonuses in 2003 than in the previous year, according to the survey. Forty-three percent of the respondents said they gave merit increases, compared with 30 percent in 2002. Twenty-nine percent of the groups offered cash bonuses in 2003, compared with just 7 percent in 2002.

Merit raises, says Ms. Brandel, are gaining favor as more nonprofit managers seek to encourage good employee performance. “[The merit raise] is usually given if you meet your goal or exceed your goal,” she says. “I see it as a trend of managers really starting to look at vehicles and tools they can use to encourage and reward increased merit and higher levels of performance, and that’s a really good thing.”

As can be expected, employees who worked at small groups were paid less than workers at large organizations.

Chief fund raisers at nonprofit groups with annual budgets of less than $3-million earned $60,000 to $100,000, while those at organizations with annual budgets of more than $50-million were paid $120,000 to $200,000.

Free copies of “Salary Survey 2003″ are available from Professionals for NonProfits, 515 Madison Avenue, Suite 505, New York, N.Y. 10022; (212) 546-9091. The report also is available online at http://www.nonprofitstaffing.com.