One in Three California Foundations Employs Paid Workers, Survey Says

JOB MARKET

By Lara L. McDavit

One-third of California foundations have one or more employees, according to a new study of 228 California grant makers by the Institute for Family Foundations, a consulting company in Irvine, Calif.

The survey focused on staffing and compensation, including the duties and median salaries of foundations’ highest-paid employees, and was conducted from April to September with assistance from the Hay Group, a Philadelphia consulting organization that specializes in compensation research.

Of the 228 participants, 177 were family foundations, while 43 were independent foundations. Eight participants did not classify themselves in either category. Most of the foundations were in Los Angeles and surrounding areas, with 144 of the respondents located there. The majority of respondents reported that their assets were less than $10-million: 89 grant makers reported that they had less than $1-million in assets, while 82 foundations reported assets between $1-million and $10-million. Nineteen foundations reported having assets valued between $10-million to $25-million and 32 of the respondents said their organizations’ assets exceeded $25-million. An additional six respondents failed to report their assets to the researchers.

Highest Earners

The survey gathered information about the highest-paid employee at each foundation and found that 55 of these workers serve on their organizations’ boards. Twenty-two of these board members also were the foundation’s chief executive officer or executive director. Board members made an average of $63,876 and had a median income of $50,000 per year. (A median figure indicates that half of the results of the survey were greater than that number and half were less.) Twenty-three of the foundations with paid employees reported that their board chairmen held the highest paying position, making an average of $55,655 and a median of $48,000 per year.

Not surprisingly, salaries were strongly dependent on the grant makers’ financial resources. Foundations with assets of $25-million or more gave their highest-paid employees a median salary of $112,000 annually, while foundations with $1-million to $10-million in assets paid those workers a median of $31,000 a year. Of the foundations surveyed, the highest-paid employee work a median of 30 hours a week, and only 13 of them work under a written contract.

The survey found that 93 percent of the grant makers’ highest-paid employees primarily specialize in the leadership and management of the foundation. Grants administration was the second most common responsibility cited, with 87 percent of the staffed foundations saying that their highest-paid workers handle those duties. Only 55 percent of staffed foundations said that their highest-paid employee was involved with organizational investments. A minority of staffed family foundations, regardless of size, reported the same.

Seventy-two of the 228 foundations surveyed reported providing their employees with compensation beyond their salaries. Health-care insurance was the most common benefit. Thirty-three of the highest-paid staff members received health insurance, and 40 foundations offered health insurance to other employees. Twenty-four percent of respondents with paid staff members said they supplied life insurance to their employees.

A full copy of “2002 California Foundation Compensation Survey: Participants Report of Survey Findings” costs $125 and can be obtained from the Institute for Family Foundations, 2 Park Plaza, Suite 1245, Irvine, Calif. 92614; (866) 833-1112; http://www.iffadvisors.com.