In this week’s class, a topic came up regarding nonprofit compensation. It immediately made me think of Dan Pallotta’s speech: “The Way We Think About Charity is Dead Wrong”

https://www.youtube.com/watch?v=bfAzi6D5FpM&t=601s

I’ve always been a fan of this TED Talk since it speaks so much truth. We rarely point fingers at the for-profit sector for paying their top talent high salaries, but we already hear scrutiny about the compensation of nonprofit CEOs. Why is this? We want the best and the brightest to pursue careers in the nonprofit sector – and often it’s difficult to recruit top executives without proper compensation. Although we traditionally believe that professionals should pursue this sector because they want to do good, it’s important for us to recognize that this industry is challenging and top management will need to work HARD – long hours and challenging work that can lead to burnout. I have seen a lot of bright students deciding not to pursue nonprofit careers simply because of this, especially in NYC, where nonprofit jobs that require a Master’s Degree start at $35k, which won’t even get you a studio apartment.