Nearly three in 10 of the leaders of the nation's biggest charities and foundations have taken pay cuts in the past year as the recession causes donations to drop and batters endowments, a Chronicle of Philanthropy survey has found.
The pay cuts come after the earnings of nonprofit leaders changed a median of 7 percent last year, according to The Chronicle's study of compensation at 325 large nonprofit organizations. That means half of the people in the survey got bigger raises. Half got smaller increases or saw their compensation drop. (A searchable database and other articles based on The Chronicle's research are available to subscribers or to people who buy a short-term pass.)
The increases that nonprofit leaders received in 2008 are especially noteworthy considering the sharp drop in pay earned by for-profit executives. A survey conducted for The New York Times by Equilar, a San Mateo, Calif., a company that studies executive pay in the for-profit world, found that total compensation dropped by a median of 9 percent in the 2008 fiscal year for executives at the 200 largest companies.
But one of the factors that fueled the long-term climb in compensation for nonprofit executives — the increasing reliance by boards on salary surveys produced by compensation experts — may serve to curb raises in 2009 and future years.
Read more of this article by Noelle Barton and Ben Gose at http://philanthropy.com/free/articles/v21/i22/22000107.htm