Friday, July 23, 2010

The Salary Of A Nonprofit Executive

Nonprofit executives focus on increasing donations to their organizations.


Nonprofits are organizations that focus on improving the state of communities through volunteer work, civic engagement and charity. However, nonprofits also include educational institutions, universities and hospitals. Executives who work for these organizations -- often referred to as directors, presidents or chief executive officers -- are responsible for overseeing organizational initiatives, interfacing with media and donors, and managing financial resources. It is important that nonprofit executives are effective leaders, since a majority of nonprofits receive their revenue from private contributions. Based on a January 2011 PayScale report, executive directors in nonprofit organizations earned average salaries ranging between $44,328 and $81,245 per year.


Time Frame


PayScale showed that there was nearly a $50,000 spread between executive directors with less than one year of experience compared with executives with more than 20 years of work experience. For example, executive directors working in nonprofits for less than one year only averaged salaries ranging from $33,830 to $55,041 per year. However, professionals with more than 20 years of experience made average salaries that ranged from $59,282 to $100,790 per year. Executive directors with five to less than 20 years of experience reported average salaries of $42,253 to $84,230 per year.


Location


The salaries for nonprofit executives working in California differ from nonprofit executives working in New York or Washington. For example, PayScale showed that California executive directors made average salaries ranging from $53,922 to $93,763 annually. In comparison, professionals averaged salaries of $50,542 to $99,846 in New York and $46,898 to $74,577 in Washington. Workers in Florida received average salaries ranging between $48,011 and $80,549 per year. Texas executive directors averaged salaries similar to their Washington counterparts, reporting annual wages of $41,160 to $75,642 per year.


Gender


Average salaries for male and female executive directors in nonprofit organizations differ significantly. Male executive directors reported average salaries that fell within the $50,528 to $90,085 pay range. However, their female counterparts reported average annual wages that ranged between $41,592 and $74,406 a year.


Type


The type of nonprofit an executive works for can have a substantial impact on her salary potential. PayScale revealed that executive directors working for a foundation or trust organization averaged salaries ranging between $47,956 and $91,925. Local and state government organizations paid executive directors average salaries of $48,956 to $90,016. Nonprofit executive directors working at colleges and universities earned average salaries that fell between $56,686 and $97,625 per year. Executives who were self-employed earned salaries that ranged from $49,264 to $90,982. Hospitals paid nonprofit executives the highest average salaries at $71,017 to $121,578 annually.







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