Nonprofit Compensation: Highlights from MANP's Newest Report

Nonprofits employ 1 in 7 Maine workers and are essential partners in our state’s workforce development efforts, so understanding nonprofit compensation trends is a critical element of attracting and retaining talent. What compensation trends stand out from MANP’s recently released Report on Nonprofit Wages + Benefits in Maine?

1. Nonprofits are more confident in the continuing economic recovery.

• 90% of organizations expect employment to stay the same or increase in the coming 12 months, and an impressive 37% expect to increase staffing in 2017, up from 30% in 2014.
• 82% of full-time jobs  included in the Benchmark (those that have been tracked since our inaugural survey) saw increases since 2014, though only 63% increased in excess of inflation.

2. Nonprofits at the largest nonprofits have the most work to do on gender disparities in hiring and compensation.

• Women hold 65% of executive director positions in organizations with budgets under $1 million, and the wage gap for organizations of this size has closed completely.
• Meanwhile, men are twice as likely to hold the top leadership position in organizations with budgets over $10 million, and are paid considerably more; women in this size organization make just 73 cents on the dollar as compared to their male counterparts.

3. Nonprofit employees feel the pinch of rising insurance costs and shrinking government support.

• While the same percentage (48%) of nonprofits in this survey relied on state funding as compared to two years ago, the amount of state funding slipped considerably; on average organizations report receiving 30% of their funding from state sources down from 37% in 2014.
• Benefits as a percentage of wages dropped for all budget sizes above $250,000.
• Almost half (47%) of reporting organizations leave it to their employees to find a way to fund their own retirement.

How Can You Use This Tool?

Nonprofits are complex and strategic organizations that provide essential community infrastructure, and rely on their human resources. Market comparison studies are a starting point for developing compensation strategies to recruit and retain talented employees. Objective salary data is essential to nonprofits, which must justify organization compensation levels to their boards, the IRS and the general public.

This report is not a definitive answer on what nonprofits should pay their employees, but provides a frame of reference for what organizations are paying, and should be used to inform thoughtful conversations about compensation.

A free snapshot of the report is available on our website, along with ordering details for the full report. MANP members receive a 50% discount on this essential tool!