Do Donations Support Charitable Endeavors or Fund Excessive CEO Salaries?

CEO Compensation Comparison: A regional analysis of charitable organizations Overall median salary ($132,739) Overall median raise (1.5%) Many donors assume charity leaders work for free or minimal pay, and are shocked to see they earn six-figure salaries. However, these CEO run complex multimillion-dollar operations that seek to change the world. It takes a lot of skill and talent to do that, and significant salaries are often necessary to attract and retain those individuals. Of course, while some salaries are out of line, don't immediately be put off by a six-figure salary. This graphic provides some insight from around the country. From pets to paintings: principal goal acation is to create ind s who are capable of doin ew thinas, not reing wha Median and maximum compensation by charity type Animals Arts/Culture/Humanities Education Environment 2010 Median 2010 Max $100,000 $554,751 $162,263 $1.35 million $177,734 $1.92 million $115,746 $493,332 Public Benefit Religion $88,021 $500,450 Health Human Services International $150,986 $745,251 $117,875 $787,300 $128,187 $879,591 $151,197 $1.2 million Sizing it up: Small Charity Median Medium Charity Median Average compensation based on charity size across the US Large Charity Median $113,723 (N=252) $169,802 (N=275) $95,909 (N=278) $143,272 (N=230) $241,254 (N=126) $78,420 (N=77) $125,000 (N=69) $188,130 (N=35) $85,988 (N=275) $136,997 (N=229) $233,672 (N=169) $294,513 (N=179) Northeast Pacific West Mountain West $110,750 (N=247) Midwest $160,598 (N=209) $90,000 (N=108) $131,217 (N=110) $235,159 (N=56) $253,672 (N=110) Mid-Atlantic $89,000 (N=300) $130,511 (N=289) $234,960 (N=163) Southwest South Size is defined by total expenses. Small <$3.5 million; Medium between $3.5 and $13.5 million; Large charities have total expenses >$13.5 million. Geographically speaking: Compensation highs/medians by US region 2010 Median 2010 Max Mid-Atlantic Midwest Mountain West Northeast South Pacific West Southwest $150,000 $1.026 MM $121,564 $1.9 MM $111,920 $745,251 $156,914 $1.3 MM $118,636 $782,439 $128,466 $1.35 MM $125,156 $827,342 Median value is the middle value of a set of numbers: half of salaries are greater and half are lower. This is less sensitive to extreme salaries and therefore more representative of the group. Based on 3,786 charities. 5 Important Considerations for Donors CHARITY NAVIGATOR Your Guide To Intelligent Giving CEO salaries may seem very high...especially for charities. Before you make a final judgment, consider these tips: Consider the performance of the charity vs CEO salary. If a CEO salary is higher than other similar charities, don't immediately see this as a red flag. You're better off supporting a high-performing charity that pays its CEO well over a substandard charity that underpays its CEO. 15 Obtain comparison data. Use the information provided in this analysis to compare a CEO salary to other similarly sized charities, as well as to those in the same category and region. 4 Be skeptical of charities that report zero CEO compensation. Very few people can afford to work for free. If the charity you're interested in does not report CEO compensation, contact them for more information. Find out if the charity has a compensation committee. By accessing Charity Navigator's Accountability and Transparency Methodology ratings, you can determine if the charity is conducting an independent review of the salary of its CEO. Be cautious if the charity has given the CEO a loan. Charities are not in the business of providing low- or no-interest loans to help CEOS move to exclusive neighborhoods or make luxury purchases. CEO Compensation Comparison: A regional analysis of charitable organizations Overall median salary ($132,739) Overall median raise (1.5%) Many donors assume charity leaders work for free or minimal pay, and are shocked to see they earn six-figure salaries. However, these CEO run complex multimillion-dollar operations that seek to change the world. It takes a lot of skill and talent to do that, and significant salaries are often necessary to attract and retain those individuals. Of course, while some salaries are out of line, don't immediately be put off by a six-figure salary. This graphic provides some insight from around the country. From pets to paintings: principal goal acation is to create ind s who are capable of doin ew thinas, not reing wha Median and maximum compensation by charity type Animals Arts/Culture/Humanities Education Environment 2010 Median 2010 Max $100,000 $554,751 $162,263 $1.35 million $177,734 $1.92 million $115,746 $493,332 Public Benefit Religion $88,021 $500,450 Health Human Services International $150,986 $745,251 $117,875 $787,300 $128,187 $879,591 $151,197 $1.2 million Sizing it up: Small Charity Median Medium Charity Median Average compensation based on charity size across the US Large Charity Median $113,723 (N=252) $169,802 (N=275) $95,909 (N=278) $143,272 (N=230) $241,254 (N=126) $78,420 (N=77) $125,000 (N=69) $188,130 (N=35) $85,988 (N=275) $136,997 (N=229) $233,672 (N=169) $294,513 (N=179) Northeast Pacific West Mountain West $110,750 (N=247) Midwest $160,598 (N=209) $90,000 (N=108) $131,217 (N=110) $235,159 (N=56) $253,672 (N=110) Mid-Atlantic $89,000 (N=300) $130,511 (N=289) $234,960 (N=163) Southwest South Size is defined by total expenses. Small <$3.5 million; Medium between $3.5 and $13.5 million; Large charities have total expenses >$13.5 million. Geographically speaking: Compensation highs/medians by US region 2010 Median 2010 Max Mid-Atlantic Midwest Mountain West Northeast South Pacific West Southwest $150,000 $1.026 MM $121,564 $1.9 MM $111,920 $745,251 $156,914 $1.3 MM $118,636 $782,439 $128,466 $1.35 MM $125,156 $827,342 Median value is the middle value of a set of numbers: half of salaries are greater and half are lower. This is less sensitive to extreme salaries and therefore more representative of the group. Based on 3,786 charities. 5 Important Considerations for Donors CHARITY NAVIGATOR Your Guide To Intelligent Giving CEO salaries may seem very high...especially for charities. Before you make a final judgment, consider these tips: Consider the performance of the charity vs CEO salary. If a CEO salary is higher than other similar charities, don't immediately see this as a red flag. You're better off supporting a high-performing charity that pays its CEO well over a substandard charity that underpays its CEO. 15 Obtain comparison data. Use the information provided in this analysis to compare a CEO salary to other similarly sized charities, as well as to those in the same category and region. 4 Be skeptical of charities that report zero CEO compensation. Very few people can afford to work for free. If the charity you're interested in does not report CEO compensation, contact them for more information. Find out if the charity has a compensation committee. By accessing Charity Navigator's Accountability and Transparency Methodology ratings, you can determine if the charity is conducting an independent review of the salary of its CEO. Be cautious if the charity has given the CEO a loan. Charities are not in the business of providing low- or no-interest loans to help CEOS move to exclusive neighborhoods or make luxury purchases.