Throughout the past few weeks, we, as a class, have spoken about what defines a non-profit and our motivations behind one day joining them. One reality that we all acknowledge is that we do not expect to grow rich from our non-profit jobs.

It seems the reality of low salary non-profit jobs are starting to change. A recent MarketWatch piece shares the corporatization of non-profits that have led to an increase in compensation packages. Many salaries in larger non-profit now rival those offered in the private sector. And it builds on itself, as more non-profits offer larger compensation packages, as the piece notes: “nonprofits are typically able to justify the high pay to their executives through comparisons to other organizations in the same field.”

It raises the question over whether these compensation packages are justified. If a program is successful, does that mean that those who oversee it should be generously compensated for it? If a program is only spending a respectable portion of its budget (say, only 10-15%) on salaries, then is it justifiable to provide a high salary.

My thoughts on this are mixed. I do believe that low salaries should not be a reality of non-profits — but I believe this should be distributed, not just at the top. As such, while I believe the salaries of non-profits should be competitive, in order to attract top talent and ensure employees do not sacrifice in the name of the organization’s mission.

Donations to an organization are fruitless if the staff that run it are overworked and unpaid. Programs lose their effectiveness, and dollars go to waste.

http://www.marketwatch.com/story/public-media-ceos-salary-is-modest-compared-to-these-million-dollar-packages-at-other-nonprofits-2017-07-11