Nonprofit CEO Compensation for Fiscal Year 2011

According to a recent report,* an uncertain economy continues to affect compensation. In 2008, compensation for incumbent CEOs generally rose 4% or more. Increases in 2009, 2010, and 2011 (the latest year for which figures are available) were below that level, although things may be improving. Compensation increases in 2011 were somewhat higher than in 2010.

The trends for female CEOs are mixed. The percentage of women in the top spot has increased, although the number of female CEOs decreases as budget size increases. Median compensation for female CEOs lags behind that of male CEOs. To some extent, the salary discrepancy is directly related to the size of the organization’s budget; the higher the budget, the greater the discrepancy.

* 2013 GuideStar Nonprofit Compensation Report

 

Social Welfare Organizations

The IRS and the U.S. Department of the Treasury have issued initial guidance addressing qualification requirements for organizations that operate to promote social welfare and are tax exempt under Internal Revenue Code Section 501(c)(4). This is the first step in a process designed to replace the ambiguous “facts and circumstances” test that is currently used to determine whether an organization is engaged in political campaign activities that do not promote social welfare with more definitive rules.

Among other things, the proposed guidance defines the term “candidate-related political activity” and would amend the current regulations to indicate that the promotion of social welfare does not include this type of activity. A few of the activities that would be considered candidate-related political activities are:

  • Conducting get-out-the-vote drives
  • Giving grants to Section 527 political organizations and other tax-exempt organizations that conduct candidate-related political activities
  • Preparing or distributing voter guides that reference candidates
  • Sending out communications that clearly reference a candidate or party within 60 days of a general election.