Salaries of New York Fund Raisers Rose 15% in 2000, New Survey Finds

By GRANT WILLIAMS

Salaries paid to fund raisers at nonprofit organizations in the New York

City area generally increased 15 to 20 percent from 1999 to 2000, says a new report on compensation.

Over all, the report said, nonprofit workers last year received increases that averaged 10 to 20 percent.

“With increasing staff needs and low unemployment rates, nonprofit organizations have had to aggressively compete with one another to fill key positions,” said the report.

The salary survey was conducted by Professionals for NonProfits, a New York personnel agency that specializes in placing staff members with tax-exempt groups. The report contains information on salaries at social-service organizations, museums, and arts groups in the areas of administration and management, development, finance, information technology, and marketing and public relations.

The survey was compiled from information gathered by Professionals for NonProfits during more than 700 job searches, 1,500 interviews with job candidates, and talks with nonprofit leaders.

The large increase in pay for those in fund raising, according to Virginia H. Strull, co-founder of Professionals for NonProfits, stemmed in part from the fact that many nonprofit organizations began capital campaigns over the past couple of years to take advantage of good economic times.

“There was a need for fund raisers, and that led to more competition for qualified candidates between all kinds of nonprofits,” said Ms. Strull.

The survey showed that development directors were paid $60,000 to $70,000 at the smallest nonprofit organizations — those with annual budgets of less than $1-million — and $125,000 to $250,000 at the largest, or those with budgets greater than $20-million.

Employees in finance departments also saw significant increases in pay — about 10 percent, the survey showed.

“Accounting schools have really not produced as many accountants as required,” said Gayle A. Brandel, the other founder of Professionals for NonProfits. “There is just a real dearth of accountants and high-level chief financial officers. Because of the competition between institutions for this particular staff, these salaries have continued to increase and will continue to, and will in the for-profit sector as well.”

The survey showed that executive directors of nonprofit organizations were generally paid $65,000 to $75,000 at the smallest groups, and $175,000 to $350,000 at the largest.

The overall increases in pay found by the survey mean that charities are attracting talented workers, says Ms. Strull. In years past, she said, “there was a concern that people were going to for-profits because of the money there. We are hoping that nonprofits can continue this current trend so that people can both make a decent living and make a difference.”

Free copies of “Salary Survey 2000″ are available from Professionals for NonProfits, 515 Madison Avenue, New York, N.Y. 10022. The report is also available on the Web at http://www.pnp-inc.com.