Nonprofit Compensation Studies
Competitive nonprofit compensation, regulatory compliance, and informed decision-making start with objective market data and experienced insight from CRI CapinCrouse.
Nonprofit organizations compete with both nonprofit and for-profit employers for talented employees. At the same time, they must steward limited resources responsibly, maintain donor and stakeholder trust, and demonstrate that compensation decisions align with their mission. For senior executive roles, nonprofit compensation also carries significant compliance considerations.
The nonprofit compensation studies from CRI CapinCrouse provide objective, documented analysis that helps leaders and boards make informed, defensible compensation decisions that demonstrate responsible stewardship.
WHAT IS A NONPROFIT COMPENSATION STUDY?
A nonprofit compensation study from CRI CapinCrouse is a structured analysis that evaluates whether an organization’s compensation levels are competitive, reasonable, and aligned with the requirements of the Internal Revenue Code and nonprofit best practices.
Unlike general nonprofit compensation reports and salary surveys, each of our studies is tailored to your organization and prepared by experienced specialists with a deep understanding of the complexities of nonprofit compensation.
We offer two nonprofit compensation study options designed to meet different organizational needs.
Nonprofit Executive Compensation Study: This service focuses on executive-level positions and helps boards and leadership teams evaluate executive compensation effectively and responsibly.
In addition to market benchmarking, the study helps organizations address the Internal Revenue Code requirements for reasonable compensation and provides documentation that can support compliance and governance best practices.
Nonprofit Employee Compensation Market Study: This service equips organizations to make informed compensation decisions for non-executive roles. It includes analysis of each unique position and compensation, plus development of job matches and market benchmarks to help organizations remain competitive while managing resources responsibly.
Both studies include a detailed report and compensation comparison analysis based on:
- The most current nonprofit compensation salary data available
- Comprehensive peer comparisons
- Job-specific benchmarking and market evaluation
Frequently Asked Questions
A compensation study provides objective data and insight that helps nonprofits establish reasonable, competitive compensation and make strategic workforce decisions.
The Internal Revenue Code requires nonprofit executive compensation to be “reasonable” and supported by appropriate data and documentation. Broadly, reasonable nonprofit compensation is the value that would be paid to an individual of similar skill, knowledge, and experience, in a similar position, at a similarly sized organization (which does not need to be tax-exempt), and in a similar geographic region.
The burden of proving that executive compensation is reasonable is on the organization, and failure to do so can result in substantial penalties for the executives and, in some circumstances, for those who approved the compensation. Proper documentation helps organizations and boards show that compensation decisions were informed, objective, and based on appropriate market data.
A study can help nonprofits evaluate whether compensation is competitive and aligned with market conditions. It can also help determine whether executive compensation packages comply with rules set forth in the Internal Revenue Code.
Nonprofits of all sizes and mission areas can benefit from compensation data and benchmarking tailored to their organization and workforce.
To reflect current data, we generally recommend updating compensation studies every two to three years, or sooner if there are significant organizational changes or market shifts.
Please use the form below to get started. We’ll discuss your organization’s goals and how we can help you make informed compensation decisions that support your mission, employees, and ongoing success.
