Berkshire Taconic Community Foundation

Nonprofit Salary Survey Released

New Compensation Report Provides Hard-To-Find Data for Small to Medium Sized Nonprofits

December 16, 2010

SHEFFIELD, MA—Berkshire Taconic Community Foundation announced today that the report Valuing Our Nonprofit Workforce 2010: A Compensation Survey of and for Nonprofits in Massachusetts and Adjoining Communities has been released and is available on the foundation’s website at berkshiretaconic.org/nonprofits. The report provides a first glimpse at comprehensive data on pay for staff at small to medium sized nonprofit organizations in the area. Third Sector New England (TSNE), a nonprofit support organization, worked with partners including Berkshire Taconic to survey 202 nonprofits across Massachusetts and bordering communities in New York, Rhode Island and Connecticut. More than 30,000 are employed by the nonprofit organizations that completed the survey. Data was compiled on over 24,000 individual salaries, and these were categorized into the 131 job titles.

“A central component of our mission is to support area nonprofits in their good work,” said Berkshire Taconic president Jennifer Dowley. “Nonprofit employees comprise a critical component of the economy and are doing some of our region’s most important work – holding the fabric of our communities together. This survey will give organizations benchmarks on compensation to help them make fair and informed compensation decisions.”

The survey was conducted in response to frequent requests from nonprofit executive directors, board members and consultants for compensation data. Prior to the release of Valuing Our Nonprofit Workforce, few of the salary surveys available were specific to small to medium sized nonprofit organizations.

The survey set out to answer the following questions:

What are the pay practices of our region’s nonprofit organizations?

What are the pay variables across staff positions, organizational fields of service, size and budget and geographic regions?

How do salaries in smaller organizations compare to each other and how are they different from those in larger ones?

Does length of service impact pay for executive and other management level positions?

Median household income in Massachusetts was $64,081 in 2009, according to a September 2010 report from the Massachusetts Budget and Policy Center. However, the median income for a number of nonprofit staff and management positions cited in the Valuing Our Nonprofit Workforce 2010 survey was far below this figure. The survey finds that the average salary for junior level assistants and receptionists in the nonprofit sector is just over $25,000. Organizers and preschool teachers average just $30,000. Executive directors at nonprofits with budgets under $1 million dollars average only $60,000.

Summary of Findings

On average, male executive directors/CEOs earn significantly higher pay than their female counterparts. The average annual salary for all executive directors/CEOs in the sample is $107,256. For men, the average pay is $126,247, and for women, the average is $89,271.

While a majority (54%) of all executive directors/CEOs in the sample are women, a relatively greater number of men are found in the executive directors/CEOs positions of the largest organizations, which tend to pay higher salaries.

Twenty-four percent (24%) of the executive directors/CEOs represented in the survey have an employment contract. Sixty-nine percent (69%) hold master’s degrees or doctorates.

Many participating nonprofits use more than one method to grant salary increases. Merit or performance pay was cited by 39%, cost of living by 35% and other practices by 10%

However, only 58% of participating organizations have salary increases budgeted in their current fiscal year, undoubtedly a reflection of continuing economic uncertainty.

Only 15 organizations (7%) reported that they have union contracts for one or more of their positions. The types of positions are varied, including professional and non-exempt ones.

“The survey is a timely well of information aimed at helping our nonprofits during their budgeting season, which is happening right now,” said Dowley.

Third Sector New England helps fellow nonprofit organizations manage more effectively so they can better meet their mission to support strong, inclusive communities. TSNE is an effective capacity builder, fiscal sponsor, convener, trainer consultant and grantmaker.

Berkshire Taconic Community Foundation builds stronger communities and improves the quality of life for all residents of northwest Litchfield County, CT; Berkshire County, MA; and Columbia County and northeast Dutchess County, NY, acting as an agent for positive change in the region.

Since 1987, Berkshire Taconic has managed a growing collection of charitable funds created by individuals, families and businesses. Each year, the foundation distributes over $7 million through grants and scholarships for programs in the arts and education, health and human services and environmental protection, helping thousands of donors achieve their philanthropic goals and hundreds of nonprofits carry on their good work. Berkshire Taconic is a 501(c)(3) nonprofit public charity.

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