PBMares Accounting Blog

Nonprofit CEO Compensation: Attract the Best without Attracting Criticism

Posted by Bo Garner, CPA, MBA on Apr 8, 2016 9:30:00 AM

Not-for-profits need to offer enticing executive compensation packages to attract and retain top talent. But if you pay “too much,” your organization can get in trouble with the IRS and charity watchdog groups. Here’s how to strike the right balance.

Looking for comparables

According to the 2015 Guidestar Nonprofit Compensation Report, the average CEO pay in the United States ranges from $47,920 to $689,973, depending on the organization’s budgetary bracket. Of course, such numbers tend to be skewed by a few atypical organizations. What’s more, compensation varies widely according to such factors as the geographic location and mission of specific organizations.

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Topics: Not-for-Profits, Compensation, NFP Bites