(Series: "Christian Greed")

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Sunday, January 09, 2005

Greed: (Good Works) A Study of Nonprofit Exec. Pay

(Study Conducted: 1-6-04)
by Bernie Dehler

Selected: Fifty-nine of the most popular involved in "good works."

Results: See this webpage for all the data (tables and chart for the exec. pay of 59 nonprofit organizations involved in "good works.") Note: The chart was updated on 1-10-05 to show an average line.


Nonprofit companies, by definition, are formed to benefit the public. They are not meant to be a profit means for individuals. This is why, for example, the Board of Directors usually serve at no charge (unless they are on the executive staff, as paid employees), and why nonprofits can't offer stock for investors. It's my concern that some nonprofits are headed by greedy people who are more there for the money rather than the service. On the flip side, some organizations are run excellently, as role-models. Examples of excellence, regarding reasonable executive compensation, are "Habitat for Humanity," "Feed the Children," "AmeriCares," and Compassion International."

Personally, I feel that $150K should be a top salary. I think it's sad that the "American Red Cross," for one example of many, pays $621K to their top executive (4x what I consider appropriate). Some people justify this because of their large revenue, but there's various reasons why that doesn't hold true:

1. All executives work approximately the same hours.
2. They all have hierarchy (staff) to do any additional work, such as VP's, directors, etc.
3. United Way, for example, may be just as big, but they don't roll-up all their money into a central place like American Red Cross-- each division handles their own operation.
4. I'd hate to imagine the politics in getting this position, and keeping it.
5. There is no shortage of qualified executives who would do the job for $150K.

Bernie's picks for Tsunami disaster relief: NW Medical Teams, Doctor's without Borders, Mercy Corps, & Mercy Ships.


Anonymous Anonymous said...


I would love to see a researcher expose the wasted funds the Government spends at higher education institues.

Research the top 5 schools in the 50 states and the salaries paid to the top 10 positions (president, provost, dean, etc).

The numbers would be astronomical.

In my home town, the university staffers make between 80 and 250k including perks, bonuses and housing/auto allounces and we would probably be considered one of the smaller schools in the state.

Our state and federal tax dollars are being wasted on "professors" that insist on teaching our children evolution and gay rights.

11:55 PM  

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