Salaries reported for nonprofits' leaders; Pay averages from $12,000 to $275,000

BYLINE: Paul Monies, Business Writer

Average salaries for the leaders of Oklahoma nonprofit organizations range from $12,000 to $275,000, according to a compensation survey released Friday.

The report comes as charities and nonprofit organizations of all sizes compete for talent with for-profit companies, often in common occupations such as management, information systems, marketing and accounting.

The survey for the Oklahoma Center for Nonprofits and United Way of Central Oklahoma included compensation information from 170 Oklahoma nonprofits. Salary information is listed for 10 typical nonprofit jobs, from presidents and executive directors to program managers and administrative assistants.

"This adds to the ability of nonprofits to be more accountable and more transparent in the work that they do," said Bob Spinks, president and chief executive officer of United Way of Central Oklahoma. "It also gives much better planning detail for comparative salary information. It gives a lot of good information for boards of directors and nonprofit managers to how better fit salaries and benefits to the marketplace."

Budget size break down By some estimates, Oklahoma has more than 12,000 nonprofit groups, Spinks said. They include everything from social service charities and chambers of commerce to professional associations and private foundations.

The report separated nonprofits by budget size and location. Median salaries for executive director/president/chief executive officer at organizations with a budget of less than $400,000 were $41,000. At the biggest nonprofits - those with annual budgets of $3 million or more - median salaries were $110,000 for the top leaders.

Generally, salaries were higher at nonprofits with bigger budgets. Oklahoma City and Tulsa had comparable levels of pay for executive directors, while rural nonprofits offered salaries about one-third less.

Median pay for program managers ranged from $18,824 at the smallest nonprofits to $36,823 at the largest nonprofits, according to the report. Median salaries for administrative assistants ranged from $19,700 to $27,000.

Daniel Borochoff, president of Chicago-based American Institute of Philanthropy, said salaries are just one measure donors should take into account when deciding whether to support a nonprofit. Spending on vendors for services such as professional fundraising and comparisons of overhead expenses with similar nonprofits also are important indicators, he said.

"People do need to be paid fairly and reasonably, because those jobs come with an incredibly important responsibility," Borochoff said.

U.S. average $142,000 Nationally, watchdog group Charity Navigator said average compensation packages for nonprofit CEOs were almost $142,000 in 2006.

The Oklahoma survey collected aggregate salary and bonus information from the 170 nonprofits that responded. Detailed salary information for top officers is disclosed in annual statements nonprofits must file with the Internal Revenue Service. Statements for the most recent three years are open to the public for inspection.

For example, United Way's Spinks received a salary of $122,571 in 2005, according to the organization's IRS statement. Roy Williams, president and chief executive officer of the Greater Oklahoma City Chamber of Commerce, had a 2005 salary of $242,164. Williams said his salary included a bonus.

While those two nonprofit organizations have different missions, both Spinks and Williams said it's a constant challenge to find qualified people.

"One of the fastest-growing professions is nonprofit management," Williams said. "Nonprofit organizations are starting up everywhere, whether they are professional associations or community groups. As a result, there's a very high demand on trying to recruit people into that profession and managing nonprofits."

He said nonprofits compete with each other and the private sector for talented employees. They also have to tailor their compensation packages differently from for-profit companies.

"We lose people to the private sector because we cannot compete financially with different kinds of compensation programs," he said. "We can't give stock options, and we're limited in structuring retirement programs. Nonprofits have stricter IRS guidelines as it relates to benefits."

Because of its high-profile fundraising campaigns, Spinks said United Way has lost several employees to local for-profit companies. But he's heartened by the interest among young people about careers in the nonprofit sector.

"We have to think strategically in our own business about how you get these top-notch young people to work with you," Spinks said.

Like other nonprofit executives, Spinks' salary is set by the United Way board of directors. He said it is comparable to other United Way organizations of the same size across the country.

"Our organization's administrative and fundraising costs combined are still way below what the IRS and Better Business Bureau recommends, so we're always trying to keep down the cost of doing business," Spinks said.

The IRS recommends that no more than 25 to 30 percent of a nonprofit's budget go to administrative and fundraising costs. United Way is about 13 percent.

BY THE NUMBERS

Top executives' salaries Catholic Charities, Oklahoma City: $80,496

Greater Oklahoma City Chamber of Commerce: $242,850

Oklahoma 4-H Foundation, Stillwater: $22,164

Planned Parenthood of Central Oklahoma: $62,910

United Way of Central Oklahoma: $122,571

YMCA of Greater Oklahoma City: $161,231

YMCA of Greater Tulsa: $132,000

Texas County Housing Authority, Guymon: $45,000

Source: Internal Revenue Service Form 990 statements