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Do executives in the nonprofit sector earn too much

by Adam Woodworth

Created on: June 08, 2007

I sometimes hear from volunteers of various charities that non-profit executives make too much money. I've even heard some volunteers who have said that paying staff is a waste of donor dollars.

Why would volunteers say this? Probably the biggest reason is that the volunteers aren't seeing what you, as the non-profit executive is doing on a day-to-day basis. If you think about it, a volunteer might interact with you for an hour a week or maybe not even have the ability to see you 'at work' at all. The volunteer builds a perception of you based upon their past experiences and what they currently perceive. You then become 'devalued' in the mind of the volunteer.

Every non-profit I've ever worked for or volunteered for I've seen this (whether I was the target or one of my colleagues were the target). Early in my career, I took it very personally and made the classic error of going "out of my way" for these volunteers. My supervisor at the time made me realize that I wasn't doing the job I was hired to do. He told me that my job was not to make sure that every volunteer liked me. He said, "Not everyone is going to like you, and that is okay."

The reality is that staff are typically either raising the money for the organization or orchestrating the efforts of the money being raised. The real issue is that if the non-profit world wants to attract high-quality employees, then they are going to have to be paid near or at the level of their for-profit counterparts. Don't forget about the other costs because not only do you have to find the money to pay your staff, but you have to make yourself competitive with benefits, as well.

Where you, as a non-profit staff person have to spend most of your time is with those volunteers who KNOW what you do and KNOW your value to the organization. You are probably not going to change the minds of the naysayers. Unfortunately, many of us spend very little time with the volunteers who know what we do and I would venture to say that if you did, you will build stronger relationships with these volunteers.

I know what you are asking, "But, Adam, isn't paying your staff a wage that is similar to that of the for-profit sector a poor use of the donor dollars?" If your non-profit executive is a fund-raiser raising 4x-5x his/her salary and benefits, then it is a good investment of donor dollars. If you have a staff person with no fund-raising goals and who is passionate and exceeds their goals, then it is a good investment. You have to think of staff salaries as an investment in the future of your organization.

Somewhere in your pool of donors, volunteers, and community members you will always find someone who says that non-profit executives make too much. That's just the reality.

Learn more about this author, Adam Woodworth.
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