Executive compensation at nonprofits is on the rise, according to a recent article by the Wall Street Journal. New data from the IRS shows that the number of seven-figure salaries at charities tripled between 2011 and 2014. The organizations that are paying their employees in the millions range from major hospitals and universities to small …
Nonprofit organizations have to attract quality employees just like other businesses. This is often hard to do with just a compelling mission. Attracting the best requires offering attractive salaries and benefit plans. But when is it too much? Congress holds that a salary package must be “reasonable.” Compensation is presumed to be reasonable if the …
Should there be a cap on nonprofit executive’s compensation? The Governor of New York thinks so. A recent Executive Order limits the amount New York State will reimburse for executive compensation to $199,000 per year. According to Governor Cuomo, this is meant to reduce “excessive administrative costs and outsized compensation for [] senior executives.” This …
