GLEN ROCK, N.J., October 3, 2014 –The typical charity’s chief executive officer received a low to mid six figure compensation package, according to Charity Navigator, the nation’s leading charity evaluator and donor advocate. And the typical CEO saw their compensation increased just 2.6% over the prior year.
The study examined CEO compensation at 3,946 mid to large-sized charities in America to help donors, policymakers, charity Boards and others understand how leadership pay varies by the charity’s location, size and mission. Findings from the report include:
"If a charity follows good ethical best practices, is financially well managed and is focused on delivering on its mission, then we urge donors not to discount such charities simply because the leader's pay is in the low to mid six figures. Our extensive research shows that this is the level of compensation required to attract and retain bright, able, and committed leaders at mid to large sized charities" said Charity Navigator, president & CEO, Ken Berger. “At the same time, we also urge donors to be wary of charities that pay salaries hovering near or above one million dollars. The purpose of a charity is to provide a public benefit. Every donor and tax payer subsidizes the charitable sector with that purpose in mind, not creating a class of millionaire CEOs.”
CEO compensation includes salary, cash bonuses and expense accounts, but not contributions to benefit plans or deferred compensation that is allocated to be paid in later years. The data for this report was gathered from the charities’ Forms 990 (annual informational tax filing) for the fiscal year ending 2012.
About Charity Navigator (www.charitynavigator.org)
Charity Navigator is the largest expert charity evaluator in America and its website attracts more visitors than all other charity rating groups combined. The organization helps guide intelligent giving by evaluating the Financial Health and Accountability & Transparency of ~8,000 charities. Charity Navigator accepts no advertising or donations from the organizations it evaluates, ensuring unbiased evaluations, nor does it charge the public for this trusted data. As a result, Charity Navigator, a non-profit 501 (c) (3) organization itself, depends on support from individuals, corporations and foundations that believe it provides a much-needed service to America's charitable givers. Charity Navigator, can be reached directly by telephone at (201) 818-1288, or by mail at 139 Harristown Road, Suite 101, Glen Rock, N.J., 07452.
To access the complete study, including tips to help donors evaluate CEO pay, visit: http://www.charitynavigator.org/ceostudy