Donations Are Down, But Nonprofit CEO Pay Goes Up

Despite donations to nonprofits dropping amid the American recession, salaries for nonprofit CEOs are on the rise, and expected to rise even more in 2011.

The Chronicle of Philanthropy reports that 31 percent of nonprofit organizations gave a pay increase to their executive staff in 2010. (Note: the full article can only be read by subscribers to the Chronicle of Philanthropy.)

Nearly every nonprofit (in every cause), however, has reported a decline in the amount of donations they receive. The Seattle Post-Intelligencer reports that while many frequent donors continue to give money, it's often in lesser amounts than in previous years.

From The Seattle Post-Intelligencer:

"Donors are still donating, but the amount of the donations are lower," said Janet Trinkaus, executive director of Rise n' Shine. "People are still caring, which is wonderful, but I think the economy has affected individuals and grantors."

Funding isn't the only problem nonprofits have seen in recent years. Food banks and locations that accept donated clothing are feeling the pinch as well.

Food banks are seeing fewer donations, a problem that grows in summer when children are out of school.

From The Cullman Times:

"Deposits every week have been thousands, and the other day our deposit was just over $400," Bryant said. "We operate on donations."



Non-Profit CEO Pay: Fascinating! Thanks for reporting.

That's pretty amazing!

I ended my contributions to United Way in the early nineties, when the CEO fund misuse scandal broke out and encouraged my coworkers to do the same. I now only support charities (when I can) directly, rather than through a Byzantine organization that eats it up with a high overhead.

You'd think the ethical thing for large non-profits to do would be to make bonuses and raises for executive officers dependent on increasing (or stabilizing, respective of the economy) donations, but maybe that's just me...

Thanks for passing that along. I hadn't seen it.


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