Charity Salaries
Maybe I'm just jealous, but I was shocked at the figures in this NY Post story yesterday.
Check out the salaries of the folks running the National September 11 Memorial & Museum:
President: $371,307
Executive VP for Programs: $351,100
Executive VP, Capital Planning: $337,143
Executive VP, Development: $322,292
CFO: $224,113
VP Design and Construction: $221,429
Senior VP, Public Affairs: $214,270
General Counsel: $193,316
Senior Adviser, Design Construction and Planning: $190,831
Chief of Staff to President: $171,417
My first thought was this: If these people cut their salaries in half, they could give 15 or 20 children of 9/11 victims a free ride to college.
Then, I thought about it some more. I eventually read to the end of the article:
"We're setting up a venue that will be the highest drawing venue in New York City," said board member Tom Roger, who lost his daughter on 9/11. "You don't bring in your typical, well-meaning nonprofit person off the street to get that done."
Foundation officials pointed to the compensation package of $456,558 earned by the head of the American Cancer Society's Eastern Division, which has similar annual revenue of $96 million.
Mayor Bloomberg, board chairman, said, "They're paid only a fraction of what they're worth, but at a level similar to people at comparable nonprofits."
What do you think? Am I just jealous? Or does something ring a little greedy -- even a little creepy -- about this?
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Oct '10
Re: Charity Salaries
For the president, don't forget that seven dollars.
Jan '11
Re: Charity Salaries
Creepy
Jun '10
Re: Charity Salaries
This is gross. I stop in that site frequently & always stuff a few bills into the donation box. I feel duped....
Dec '10
Re: Charity Salaries
"they're paid only a fraction of what they're worth."
~$2.6 million in salaries listed here, they generate ~$100 million in revenue ... so the question is would an executive staff with half the salary raise more than $50 million?
The effectiveness of charitable organizations are hard to judge. but there is something to the "success breeds success" argument in fundraising for large charitable organizations.
May '10
Re: Charity Salaries
Very offensive. Like the site needs Disney/Pixar-level geniuses to make it a must-see tourist attraction? This is government at work....
Re: Charity Salaries
dxturner: "they're paid only a fraction of what they're worth."
~$2.6 million in salaries listed here, they generate ~$100 million in revenue ... so the question is would an executive staff with half the salary raise more than $50 million?
The effectiveness of charitable organizations are hard to judge. but there is something to the "success breeds success" argument in fundraising for large charitable organizations. · Jan 24 at 9:28am
Yes, very thoughtful points, dx, thanks. Could you explain this one a little more to me, please, if you are still around?
"...there is something to the "success breeds success" argument in fundraising for large charitable organizations."
Do you mean that if the fundraisers themselves feel successful because of all the money they're making as salary, they will then be more successful at raising money?
Re: Charity Salaries
This is what is meant by "charity begins at home."
Aug '10
Re: Charity Salaries
When I saw these salaries, I actually thought they were quite low for the organization under consideration. There are a number of variables to consider here.
1) How much of the salary will be eaten up by Federal, State, City, and County taxes? This is New York after all.
2) What kind of individual do you want running the museum? Do you want someone who is an effective manager with great experience? That costs a premium. Do you want a recent graduate of an elite business school who has great potential? That costs a premium. Do you want a "kind hearted person" who wants to do the right thing, but lacks experience? You can pay a lower salary.
3) Why should we give the "children of the victims of 9/11" free rides to college while we let children in the LAUSD suffer under sub-par administration and education?
4) How much was raised for the victims of 9/11 and their families again? Where did that money go?
5) How much would the CEO of a $96 million corp bring home?
6) How is the other 95% of the $96 mil being spent?
Aug '10
Re: Charity Salaries
Ursula,
He means that people who have been successful in other industries because they could raise large amounts of capital for profitable ventures are also likely to be successful in raising charitable dollars for a non-profit.
Nov '10
Re: Charity Salaries
I cut my teeth in non-profits. I left a job in banking with the sincere intent on bringing my corporate experience to bear on a team of employees and volunteers dedicated to saving the world. I took a pay cut, demonstrating that I was just as committed as everyone else. Alas, I lasted only three years. It wasn't the low salary and long hours that burned me out. It was the lack of professionalism. Its not that people didn't have heart, but heart only gets an organization so far.
We sent low income kids in LA county to summer camp. The bleeding hearts that filled its volunteer, and some administrative ranks, were driven by emotional outcomes. Foundations and sophisticated donors demanded results. The bleeding hearts won, funding dried up, and a program with HUGE potential in its category, shriveled up.
Non-profits that succeed do so the same way as organizations in the for-profit sector. They are lead by talented and successful managers who drive them to success.
I am inclined to trust the market forces at bay here. The bell curve impacts the non-profit sector just as it does the profit sector.
Re: Charity Salaries
Nathaniel Wright: ... There are a number of variables to consider here.
1) How much of the salary will be eaten up by Federal, State, City, and County taxes? This is New York after all.
2) What kind of individual do you want running the museum? Do you want someone who is an effective manager with great experience? That costs a premium. Do you want a recent graduate of an elite business school who has great potential? That costs a premium. Do you want a "kind hearted person" who wants to do the right thing, but lacks experience? You can pay a lower salary.
I lived in NYC for most of my life; I know about taxes, etc. That's still a lot of money.
Also, I don't think I would have blinked if, say, the CEO and development person were up around $300,000 ... but the rest of those on the list? Really?
Aug '10
Re: Charity Salaries
Doesn't seem to be much impact anymore on the prices paid to people who don't produce anything material. We are so inured to the big wages paid to the government types that we really don't expect anything anymore for the money.
Why does everything of note have to be institutionalized ? Not that I would want to the government to meddle anymore than present, but I am reminded of the individual private efforts of Americans to do things like save Monticello, Mt Vernon and other tourist attractions that exist to protect the beginning of the country.
It is creepy in that we are memorializing an attack on the country in a very grandiose fashion. And neglecting the condition and poor management of our national cemetery at Arlington.
Sep '10
Re: Charity Salaries
Non-profits that succeed do so the same way as organizations in the for-profit sector. They are lead by talented and successful managers who drive them to success.
Peter Drucker wrote an excellent book on non profits, still worth reading. As well, there are benchmarks for administration and administrative salaries as a % of total revenue. Publish them. If these folks are worth it, they'll be within guidelines. On the face of it, there isn't enough information to know whether the board is asleep at the switch or not. That said, Michelle Obama scored a ridiculous salary at a Chicago hospital, and I don't think anyone has ever benchmarked that one properly, except as political payola.
Re: Charity Salaries
Lance:
I am inclined to trust the market forces at bay here. The bell curve impacts the non-profit sector just as it does the profit sector. · Jan 24 at 11:14am
I agree with you, Lance. I eventually came to this feeling after my initial shock/anger (jealousy? I admit it could be part of it). As I said above, I don't think I would have given it a second thought if it was 2 key folks making loads. But VP Programs? VP Public Affairs? Chief of Staff to the President? Those salaries make sense in this context? Hard for me to believe, but okay.
Sounds like you had a fascinating experience. I think your feeling that there's a bit too much unprofessionalism/emotionalism driving decisions, etc. in the non-profit world is somewhat universal. It's a frustrating world to work in, in many cases.
Nov '10
Re: Charity Salaries
I always wonder what the salaries would have been if the positions had been filled from the open market.
My experience in a large business is that the people sipping the cream at the top are paid more than they are worth and that those filling positions much lower down on the organization chart really are the ones earning their money. My guess is that there would have been a line of qualified people applying for those jobs on the open market and the result would in the long run be no different from what you'll see from this crowd.
Besides, what on earth does the "chief of staff" to a president with only eight (at most) people reporting to him have to do?
Re: Charity Salaries
M1919A4:
Besides, what on earth does the "chief of staff" to a president with only eight (at most) people reporting to him have to do? · Jan 24 at 11:32am
My thoughts exactly.
Aug '10
Re: Charity Salaries
Chiefs of staff making that much in a small organization usually maintain an extra-professional relationship with the boss.
Jun '10
Re: Charity Salaries
Nathaniel, there would have been lines of proven managers snaking out the door if these spots had been opened up in a public fashion. I imagine the positions would have been filled by retired corporate leaders willing to work for a salary of $1 per year given the organization in question. I would NEVER hire recent grads of business schools to run this unless they had solid work experience behind them.
Nov '10
Re: Charity Salaries
Ursula Hennessey
I think your feeling that there's a bit too much unprofessionalism/emotionalism driving decisions, etc. in the non-profit world is somewhat universal.·
Thanks, Ursula. It was a fun time. Just as it was frustrating. Its the nature of the beast. Problem is that its the factor that keeps really great things from happening, and lots more people getting help. We had forged a relationship with a foundation that was going to underwrite a huge expansion of the program to other communities. We had pointed out there was a huge need (market) and they decided they wanted to fill it. Although not in my portfolio, I took it upon myself to draft a strategic plan. However, it required someone with talent to drive it, talent the Executive Manager just didn't have in him. His staff and the volunteer corp feared change, and so worked against it. Eventually, the idea died on the vine. But so to did the relationship with the foundation. They were in the market for winners. And we clearly weren't in that category.
The real losers, all those kids who didn't get the chance to go to camp.
Re: Charity Salaries
Lance
The real losers, all those kids who didn't get the chance to go to camp. · Jan 24 at 12:57pm
Ahhh. That's true ... and painful.