Nonprofit Salaries

It is appropriate that nonprofit organizations with exceptional leadership who bring sustainable and expansive funding to an organization, vastly increasing its ability to fulfill its mission, should be paid at whatever level the board of directors feels adequate, in some proportion to related salaries, given particular circumstances.

That being said, this example reported by the Washington Post, might not be appropriate, but until all of the circumstances are reported it can’t be determined.

An excerpt.

“Several Republican senators are questioning expenses at the Boys & Girls Clubs of America, a national nonprofit organization that receives millions of dollars in federal funding.

“Sens. Charles E. Grassley (Iowa), Tom Coburn (Okla.), Jon Kyl (Ariz.) and John Cornyn (Tex.) asked in a letter to the group, released Friday, whether money is being spent on executive pay, travel and lobbying rather than on programs for needy children.

“The umbrella organization, which receives nearly 40 percent of its revenue from the federal government, stands to gain hundreds of millions of dollars more from a bill pending in the Senate. The organization posted a loss of more than $13 million, according to its 2008 tax return, the most recent one available.

"We find it hard to reconcile this loss given the amount spent on executive salaries, perks and lobbying expenses," the letter said. "We are especially concerned because it is our understanding that some independent clubs have closed or are on the cusp of closing because of a lack of funding."

“Roxanne Spillett, president and chief executive of the tax-exempt organization, based in Atlanta, earned nearly $1 million in compensation in 2008. That includes a base salary of nearly $361,000, a $150,000 incentive and nearly $478,000 in benefits, expenses and contributions to a deferred retirement plan, a spokesman for the organization said in a written statement Friday.

“Leaders of large nonprofits should earn competitive salaries, said Ken Berger, president and chief executive of Charity Navigator, a watchdog group.

“The average compensation for executives at groups with more than $100 million dollars in annual revenue is $460,000, including deferred compensation, according to Charity Navigator.”