June 30, 2009
Male Nonprofit Executives Earn 27% More Than Female Leaders, Study of Fla. Executives Finds
By Caroline Preston
Male executives at charities in Central Florida earn nearly 30 percent more than their female counterparts, according to a new study.
The survey of 145 nonprofit groups in the region found that men who held the top job at a charity earned an average of $110,962, compared with $80,987 for women.
That pay gap is partially due to the fact that men are more likely to lead large organizations — which offer higher salaries — than are women, according to Margaret Linnane, executive director of the Philanthropy and Nonprofit Leadership Center at Rollins College, in Winter Park, Fla., which conducted the survey.
But men tend to make more money even at smaller organizations, she said.
(The situation in Florida mirrors those found in a national study released last year by Guidestar. At the biggest organizations, female CEO’s earned 34.8 percent less than their male counterparts, according to Guidestar.)
Raises on Hold
The survey found that the recession has already started to chip into salary growth at Florida nonprofit groups.
Salaries for roughly 100 nonprofit jobs increased by an average of about 3.5 percent for the year ending in March 2008. By contrast, salaries rose by just 1.5 percent for the year ending in March 2009.
Only 47 percent of charities in the study expected to increase salaries this fiscal year, compared with 89 percent in a similar study conducted in 2007.
Benefits, too, are getting cut because of the recession, according to this year’s survey.
The number of charities paying 100 percent of the premium for employees’ health insurance declined to 47 percent, from 58 percent two years earlier.
“Nonprofits are looking at where they can save money, and unfortunately they are putting more of the burden on staff to continue their coverage,” Ms. Linnane said.
However, the percentage of nonprofit groups providing retirement benefits to employees increased slightly, to 68 percent from 62 percent in 2007, the survey found.
Roughly 11 percent of charity jobs in the survey paid less than the federal poverty level.
The study provides detailed information about employment practices at different types of nonprofit groups and compensation levels by position. It also looks at racial and ethnic diversity at Central Florida nonprofit groups.
A copy of the study, known as the 2009 Nonprofit Compensation and Benefits Report, can be purchased online. The cost is $139 each for nonprofit groups.
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I still do not understand why there is that disparity in salaries. Women are JUST as capable and experienced in running large corporations. This is 2009 where we broke the color barrier, let’s work on the gender barrier as well as work towards equality for all!
— Gail Cass Jul 1, 02:24 PM #
This just doesn’t make any sense to me. Why does this continue to happen?
— Lyn Jul 1, 03:06 PM #
“Roughly 11 percent of charity jobs in the survey paid less than the federal poverty level.” — Are we ending poverty or contributing to it? How can an organization justify paying poverty wages to any of its workers?
— Marty Jul 1, 04:41 PM #
It continues to happen because they are in the position of control and nobody is watching over. They are paying themselves whatever they want. Board members don’t look or care to look at that level of detailed information. I sometimes think they attract males who have even bigger egos because they can bully everyone else —- who has a more caring attitude. And if someone does stand up (esp if female) they get pushed out. Having worked in the not for profit and for-profit sector, I have found that the oversight is less in the not for profit. These guys (and I mean guys) are paid far too much. But everyone else has to suffer. I actually saw someone who was presented as coming to work for a not for profit as a way of “giving back to the community”—-his salary was about 200k. Nice give back?
— larita Jul 2, 10:01 PM #
I’ve been reading a lot about compensation at nonprofits recently and wanted to share a few things I’ve found interesting:
http://www.ssireview.org/opinion/entry/fundraisers_should_get_more_respect/
and
http://www.ssireview.org/opinion/entry/rethinking_compensation_for_nonprofits/
— jason Jul 6, 06:40 PM #
Women need to take responsibility for ensuring their salaries meet (or exceed) their male counterparts. I’ve worked in the non profit field for 14 years, and you have to fight for your pay. People think women will wimp out and take maternity leave or something. If women decide to have a career in a lead position, they need to be viewed as strong (and dedicated) as men.
— Candace Taylor Jul 8, 02:55 PM #
I wonder also if it has to do with the make up of the Board, if it is predominately female are they also part of the problem in looking at the Executive Directors pay?
— Coach Kerry Jul 9, 01:51 PM #