Compensation for nonprofit executives, especially CEOs, is one of the most scrutinized aspects of nonprofit governance. While nonprofit organizations are mission-driven and tax-exempt, they still operate in a competitive market for leadership talent. The IRS allows nonprofits to pay reasonable compensation for services rendered, but the line between “reasonable” and “excessive” can be narrow. For …
Posts Tagged: executive compensation
Seven-Figure Salaries at Nonprofits
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 …