How to Calculate a Non Profit Salary
Nonprofit, corporate, and government salaries for the same type of positions can vary. They can also differ between geographic areas. Salaries may be different from city to city as well as state to state. That is why it is important to know what the average salary is for the area in which the nonprofit organization is located as well as the average salary for similar jobs in other nonprofits around the country.
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Instructions
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Identify the exact responsibilities of the job within the nonprofit for which you are trying to establish a salary. An administrative assistant is not the same as an office manager. Consult the Occupational Outlook Handbook publication available on the Internet from the Bureau of Labor Statistics. It lists jobs by title and gives job responsibilities and salary information for each. Look up the general type of position, then narrow it down according to the job responsibilities listed.
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Compare regional salary data for similar job descriptions. Look first at the national average salary range for similar positions, and then focus on the specific state or city where the job is. This will give you a good idea of the salary range. Compare both corporate and nonprofit data to develop an idea of where the job's salary fits in. Download the 2009 CEO Compensation Study from Charity Navigator for more information on salaries for CEOs of nonprofit organizations.
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Contact your state's nonprofit association for a copy of its most recent wage and salary survey. In it, you will find more precise, detailed salary information from nonprofit organizations across your state. There is usually a small fee to obtain a copy of this document. Search for your state's nonprofit association on the National Council of Nonprofits' website.
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Consider the non-monetary related benefits you will offer with the position. Some of the perks of working for a nonprofit include holidays off, more paid vacation time and personal days, flexible working hours and locations. In addition, consider any health, dental, vision, insurance, or retirement benefits your organization offers. Even though nonprofit salaries are usually less than those of other sectors, they often offer more benefits to employees.
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Tips & Warnings
According to the National Council of Nonprofits, "During the process of board approval of the compensation of the executive director/CEO, it is essential to have comparable data in order to comply with the expectations for good governance reflected on the Form 990, which is the annual filing form that most nonprofits use to report annually to the IRS."
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