Nonprofit Compensation & Benefits Report Released

The Rollins Philanthropy & Nonprofit Leadership Center today announced the findings of its 2011 Nonprofit Compensation and Benefits Report. The study, published every two years, examined the compensation, benefits and employment of over 150 eligible nonprofit organizations that employ over 14,700 people in Central Florida. This year’s report shows that minorities are under-represented in executive ranks when compared with their numbers in the population of Florida: only 7% of CEO’s or executive directors surveyed are non-Caucasian, while 38% of the overall population is African American or Latino.

“Our third nonprofit compensation and benefits report findings delivered an interesting array of results,” said Margaret Linnane, executive director of the Center. “In 2009 we noticed a similar trend in the disparity of male and female salaries.  The 2011 survey revealed a lack of racial diversity of C-level executives in the non-profit sector in the region despite the recent census figures that show 38% of the population of Florida to be African American and Latino. By 2013, we hope to see that the male/female compensation discrepancy has improved and there is an increase in percentage for diversity.”  

Since this research was last conducted, the Central Florida nonprofit sector has felt the effects of a struggling economy, natural disasters, and a devastated housing market. With this in mind, it is imperative that nonprofit organizations have timely information to consider as they make decisions that affect their staffing and the futures of their organizations.  
 
Compensation
The report found that male CEOs/executive directors earn significantly higher pay than their female counterparts on average. According to the report, the average annual compensation for male CEOs/executive directors was $96,621versus $83,406 per year for females.  While more of the surveyed CEOs/executive directors are women, there are more males in the CEO/executive director positions at the largest organizations.

Of the participants surveyed, ninety-three percent of the CEO/executive directors are Caucasian with the remaining seven percent falling into other ethnicities divided between Latino and African American. The findings express a lack of diversity in the non-profit sector with the Caucasian percentages hitting an overwhelming domination over other ethnicities. 

There has been an overall increase in education at the C level with sixty-one percent of the CEOs/executive directors in the survey holding a master’s degree or doctorate, more than in previous years.  Salaries were generally seen to increase with the level of education achieved; those with a master’s degree earned an average salary of $101,424, versus those with a bachelor’s degree, who earned an average of $97,764.   

Base salary levels for the four executive positions reported in detail have risen significantly since the Philanthropy & Nonprofit Leadership Center’s 2009 study:

•    CEO/executive director: $96,621 in 2011 versus $93,939 in 2009 (3.2% increase)
•    COO/associate director: $95,522 in 2011 versus $87,897 in 2009 (8.7% increase)
•    CFO: $92,711 in 2011 versus $90,897 in 2009 (2.0% increase)
•    Development director: $77,556 in 2011 versus $72,323 in 2009 (7.2% increase)

The significant increase in executive salaries, particularly for CEO/executive directors and COO/associate directors, may be partly explained by the increase in large nonprofit organizations participating in the 2011 survey. It should be noted that pay for the highest-level positions tends to correlate most closely with organizational size. 

Of the 121 positions reported in 2009, 114 of them were also reported in 2011. Overall, the average annualized increase in salaries for these positions during the two years between March 1, 2009 and March 1, 2011 is 1.5 percent. However, only 56 percent of surveyed organizations expect to have salary increases in their current fiscal year — an indication of the current economic turmoil and uncertainty.

Benefits
Eighty-nine percent of participating organizations offer some level of medical insurance to full-time employees; however, the premiums covered by employers has generally dropped.  For example, in 2009, 49 percent of organizations offering HMO insurance for employees paid 100 percent of the premium. In 2011, 35 percent of employers offering that type of plan paid 100 percent for employees. (These numbers do not include organizations whose insurance plans are offered through Section 125 cafeteria plans). Forty-seven percent of employers paid 100 percent of employee PPO insurance premiums in 2009, while 39 percent did in 2011.  Forty-nine percent of employers paid 100 percent of employee dental insurance premiums in 2009, while 33 percent did in 2011. 
 
This year 61 percent of participating organizations offer some type of retirement benefit to their employees, a decrease from the 68 percent of organizations with a retirement benefit in 2009. Among those organizations that do participate in funding retirement benefits, however, contribution levels remain similar to those reported in 2009.

Employment
Compared to 2009, the proportion of full-time and part-time employees has seen some minor changes. Sixty-six percent of employees worked full-time in 2009 compared to 76 percent of employees who work full-time in 2011. Total turnover (including both voluntary and involuntary) among these employees has dropped slightly from an average of 18 percent for full-time employees and 27 percent for part-time employees in 2009, to 15 percent for full-time employees and 26 percent for part-time employees in 2011. The similarity in turnover rates may be related to continued economic difficulty at the time of data collection for the 2011 survey.

Methodology
Data was compiled on more than 9,000 individual salaries and categorized into 134 job titles. In 2011, 160 nonprofit organizations participated in the study, compared to 145 in 2009.  There was a ten percent increase over the 145 participants in 2009. Ninety-five of these 160 organizations (i.e., 59 percent) participated in a previous survey (either 2007 and/or 2009), while 65 of them participated in 2011 for the first time. The increase in participating organizations this year provided a larger overall data sample and resulted in a significantly larger number of individual salaries compiled (over 9,000 in 2011). One hundred thirty four job titles were reported this year, compared with 121 in 2009.

Click here to purchase a copy of the 20011 Nonprofit Compensation and Benefits Report.