Raises for Foundation Officials Outpaced Inflation Last Year, Report Says

The median raise awarded to foundation employees last year was 3.5 percent, according to

a new report published by the Council on Foundations. The median raise, meaning half received bigger increases and half smaller ones, was higher than the 2003 inflation rate of 1.9 percent, but smaller than the raises reported in the council’s previous three annual surveys.

Independent and family foundations had the largest gains, with both raising salaries by a median of 4 percent. The median raise at public and corporate foundations was 3.5 percent, and at community foundations it was 3 percent.

Median executive salaries at all types of foundations increased, while the program-officer median salary stayed the same. The median salary for chief executive and chief giving officers at all types of foundations was $104,000, up from $98,000 in 2002.

Top executives at independent foundations had the highest median pay, at $171,200, while top executives at community foundations had the lowest, at $78,845.

For program officers at all types of foundations, the median salary was $65,000.

The survey is based on data from 808 foundations and corporate-giving programs.

In a look at how pay had changed since 1999, the report said that salaries of chief executive officers of private foundations rose by an average of 2 percent a year, after adjusting for inflation, compared with an average annual increase of 4 percent for leaders of community foundations.

Average annual pay raises for program officers kept slightly ahead of inflation over the same period. After taking inflation into account, program officers at private foundations received average pay increases of 0.7 percent annually, slightly less than the average at community foundations.

Other findings of the survey:

Chief executives. Salaries varied greatly by foundation size and type. At independent foundations, salaries ranged from $34,000 to $630,000; at community foundations, from $27,500 to $515,000; at family foundations, from $9,545 to $510,000; at corporate grant makers, from $50,500 to $300,000; and at public foundations, from $40,000 to $253,707.

Salaries also varied by region, with the highest median executive pay at foundations in the Northeast — $126,063 — and the lowest in the Midwest, $86,640. The median executive salary at foundations in the West was $113,000. In the South, it was $105,000.

Chief financial officers. Private foundations (including independent and family grant makers) reported the highest median salary for these jobs — $150,000. Median pay at public foundations was $92,161, and at community foundations, $69,397. Median pay for controllers at corporate grant makers was $74,923.

Program directors. Independent foundations reported the highest median pay in these positions, $134,722. Other median salaries were $105,000 at family foundations, $88,750 at corporate grant makers, $86,000 at public foundations, and $62,000 at community foundations.

Bonuses. Slightly less than one-third (31.6 percent) of noncorporate foundations reported that some or all of their employees were eligible for bonuses. Of those offering bonuses, 61.7 percent said all staff members were eligible. About two-fifths (40.4 percent) of those organizations paid bonuses to all of their employees.

Benefits. The median cost of total employee benefits for all grant makers was 24.8 percent of payroll. Independent foundations paid the highest percentage of their payroll for benefits, with a median of 29 percent. The lowest median benefits cost was at community foundations, which spent 20.3 percent.

Women and minorities. Women continue to make up the majority of foundation staff members (75.3 percent), as well as a majority of chief executives (52.4 percent). The largest concentration of female chief executive officers is among corporate grant makers, where 75 percent of CEO’s are women.

Only 5.8 percent of foundation chief executives are members of minority groups, including 2.5 percent who are black, 1.8 percent who are Hispanic, and 1.4 percent who are Asian-American or Pacific Islander. Minority-group members make up 20.4 percent of all professional staff members at foundations and 29.2 percent of all administrative staff members, according to the survey.

Turnover. The respondents reported that 13.3 percent of foundation staff members left their jobs last year. Family foundations had the lowest overall turnover rate at 11 percent. Public foundations had the highest rate of turnover at 16 percent, with community foundations second at 13.8 percent. In almost all instances, there was greater turnover (4 percentage points or more) in the administrative positions than in the professional positions.

Copies of the report, “2003 Grantmakers Salary and Benefits Report,” are available by calling the Council on Foundations’ Publications Department at (888) 239-5221, or at http://www.cof.org. The price for a print version is $80 for council members and $150 for nonmembers. A CD-ROM version is $40 for members and $80 for nonmembers.