Charities with over $500 million in total expenses report a median pay of $422,578 for their CEOs whereas charities with $1 – $3.5 million in total expenses report a median pay of just $95,661.
Introduction
The Compensation column includes total of base compensation, bonus and incentive compensation, retirement and deferred compensation, nontaxable benefits, and other reportable compensation as reported to the IRS (Form W-2, 1099-MISC, and/or 1099-NEC), excluding any amounts already reported by the organization in a prior year IRS Form 990.
NOTE: Due to differences in the way compensation might be allocated, high salaries do not necessarily indicate inefficiencies just as low salaries are not always beneficial. A more detailed explanation is provided below the chart.
| Name & Title | Charity | Compensation | Fiscal Year |
|---|---|---|---|
| Viviane Tabar, M.D. Chairman Attending Neurosurgery | Memorial Sloan Kettering Cancer Center | $4,869,769 | 12/31/2020 |
| Note: Includes $3,350,000 bonus & incentive compensation. | |||
| Robert W. Stone President/CEO | City of Hope & Affiliates | $3,827,671 | 09/30/2020 |
| Note: Includes $2,116,992 bonus & incentive compensation. | |||
| Craig Ono, M.D. Orthopedic Surgeon | Shriners Hospitals for Children | $2,692,183 | 12/31/2020 |
| Note: Includes $1,932,426 supplemental executive retirement plan payment. | |||
| Nancy Brown CEO | American Heart Association | $2,289,308 | 06/30/2021 |
| Note: Includes $1,225,003 bonus & incentive compensation. | |||
| Laurie H. Glimcher, M.D. President/CEO | Dana-Farber Cancer Institute | $2,049,428 | 09/30/2020 |
| Jack Mahler, M.D. Chief Investment Officer | Cystic Fibrosis Foundation | $1,698,720 | 12/31/2020 |
| Note: Includes $446,250 bonus & incentive compensation, and $606,820 retirement & deferred compensation. | |||
| Wayne R. LaPierre Executive VP | National Rifle Association (NRA) | $1,665,267 | 12/31/2020 |
| James R. Downing President/CEO | St. Jude Children’s Research Hospital | $1,558,983 | 06/30/2021 |
| Cristian Samper President/CEO | Wildlife Conservation Society | $1,432,287 | 06/30/2020 |
| Harry Johns President/CEO | Alzheimer’s Association | $1,358,498 | 06/30/2020 |
| Jonathan W. Simons, M.D. President/CEO | Prostate Cancer Foundation | $1,358,211 | 12/31/2020 |
| Note: Includes $620,000 bonus & incentive compensation. | |||
| Leana Wen Past President/CEO | Planned Parenthood Federation of America | $1,284,459 | 06/30/2020 |
| Note: Includes $655,000 severance payment. | |||
| Brian Gallagher Past President/CEO | United Way Worldwide | $1,208,913 | 12/31/2020 |
| Marc H. Morial President/CEO | National Urban League (National Office) | $1,192,775 | 12/31/2020 |
| Carter Roberts President/CEO | World Wildlife Fund | $1,127,575 | 06/30/2021 |
| John Allen President | Brookings Institution | $1,120,160 | 06/30/2020 |
| Kelli Jo Shidler, M.D. Physician | Boys Town | $1,108,510 | 12/31/2020 |
| Michael Salem, M.D. President/CEO | National Jewish Health | $1,080,390 | 06/30/2021 |
| David Miliband President/CEO | International Rescue Committee | $1,073,125 | 09/30/2020 |
| William Donohue President | Catholic League for Religious and Civil Rights | $1,066,936 | 12/31/2020 |
| David Harris CEO | American Jewish Committee (AJC) | $1,044,875 | 12/31/2020 |
| Note: Includes $446,424 supplemental executive retirement plan payout. |
CharityWatch’s “A+” to “F” letter grade ratings and financial efficiency ratios take into account how a nonprofit’s employee salaries and other compensation are allocated among program, management & general, and fundraising functions.
Nonprofits generally allocate compensation based on how each member of staff spends their time. For example, the salary of a doctor who spends 100% of their time on a charity’s program activities, such as providing direct medical care, would generally be allocated 100% to program. A fundraising or development executive’s salary would be allocated 100% to fundraising. An executive director or president of a charity might spent 40% of their time on program activities, 25% of their time managing their nonprofit, and 35% on fundraising, and this person’s compensation would be allocated among program, management & general, and fundraising expenses commensurately.
Due to differences in the way compensation is allocated by charities in their IRS Form(s) 990 and audited financial statements, high salaries do not necessarily indicate inefficiencies just as low salaries are not always beneficial. Rather than perceiving a particular nonprofit executive’s compensation as too high or too low based on its nominal value, appropriate salaries are better determined by considering factors such as special skills needed for the position, relevant education and experience, and the complexity of a charity’s operations. CharityWatch encourages donors to view each nonprofit’s letter grade rating to better understand how efficiently it is operating overall prior to making a giving decision.
The average CEO of a charitable organization makes $300,000 per year. This is less than the average CEO of a for-profit company, but it’s more than the average American household earns in an entire year.
In addition to their salaries, CEOs of charitable organizations can also receive bonuses and other benefits that are not available to most Americans. For example, many charities provide their executives with country club memberships and personal assistants.
It is important to note that these figures do not include bonuses and other perks that are not disclosed publicly.
Conclusion
In reality, a charity CEO normally earns a salary of $112,000 to $351,000. CEOs of larger charities have the potential to earn more.
