Annual Income of CEO of Nonprofit Organizations in the USA

Annual Income of CEO of Nonprofit Organizations in the USA

The annual Income of CEOs of Nonprofit Organizations makes 100,896 to 126,000 dollars on average per year. Keep in mind that the nonprofit CEOs’ salaries may differ from an organization to another according to some key factors. Years of experience are one of the most important criteria determining how much a CEO can make in a nonprofit organization. Veterans CEOs who have worked over 10 years as CEO acquire a higher income due to their accomplishments in their previous experiences.

A well known successful CEO who has operated successful campaigns and has managed to keep a nonprofit organization from bankruptcy is more likely to get paid more than an entry-level CEO  who has just started her/his career.  People have to start somewhere building up their careers to meet their wanted salary goals. Entry-level CEOs have to set realistic standards and understand how nonprofit organizations operate to avoid disappointment in the future.

Annual Income of CEOs of Nonprofit Organizations

Experienced CEOs of regular corporates or organizations have to set realistic expectations as well. If they want to work in non-profit organizations, they will work more hours and gain less money than they used to. In the nonprofit organization’s world, the cause has the utmost priority over everything, even money and the comfort for its employees. A CEO must be invested in the cause itself, not the money.

That can lead us to a critical question, What’s the difference between a CEO who work for corporates and profitable businesses and a nonprofit CEO when it comes to their income? 

The average Chief Executive Officer salary in the United States of America is 768,937USD, which is significantly higher than a nonprofit organization CEO’s income. The salary range can vary depending on some factors, including education, experience, general relations, publicity, and the corporation’s size.

This variation between the two types of CEOs accrues due to the distinction between their organizations’ structure and the means of operation. It’s not peculiar that big corporates and businesses are based on commerce. On the other hand, nonprofit organizations are based on fundraising, communal services, and charities to serve a specific cause. There’s no doubt that commerce is lucrative to the corporate, rendering its CEO with a high salary and lavishing lifestyle. The nonprofit organizations help causes and needs worldwide, which guarantees the CEO a sense of comfort through helping others.

Nonprofit organizations play a critical role in keeping social bondings together. For example, nonprofit organizations like  Big Brother Big Sisters nonprofit organization that “create and support one-to-one mentoring relationships that ignite the power and promise of the youth.” Big Brothers Big Sisters organization was established the year 1904, helping millions of unfortunate youths in America over the course of 117 years. The Big Brothers Big Sisters organization help youngsters who are faced with adversity to overcome life obstacles and be a productive member of society. The current CEO of the organization Arties Stevens makes an astonishing number of 260,078USD per year, which is way higher than average for a nonprofit organization CEO’s income. Another example of an organization that impacts American society is The American YMCA  (Young Men’s Christian Association).

This organization used to be based on Christianity’s fundamentals; however, it has become more inclusive to people from other religions spreading a wider message of peace, justice,  freedom, and dignity for all people in recent years. Kevin Washington has been the CEO of this organization. He is the 14th  and the first African American CEO of the YMCA. Washington makes around 138,000 USD per year working as a CEO of that organization. Washington’s income is higher than average, as well as Arties Steven.

Which raises an important question, why are their incomes are higher and rising among other Nonprofit CEOS? The answer is publicity! Each of them works for a popular nonprofit organization in The United States of America. The formula is simple the more famous the organization is, the more revenue and money they can raise from people. The CEOs obtain higher salaries because of that. 

The cause of the nonprofit organization and its targeted potential beneficial impacts the income and the revenue for every employee, including the CEO. An organization that advocates freedom to the wild animals in captivity within the United States of America is significantly different from an organization that sponsors aspiring artists to pursue their careers. The first example(a nonprofit organization that advocates freedom to the wild animals in captivity in the USA) tend to attract middle-class prospects as they’re more empathetic to captivated wild animals. They contribute to helping the cause by donating a small amount of money, which renders the nonprofit organization with a minuscule profit. Therefore less money will be invested in paying the staff, including the CEO, a decent salary. On the other hand, sponsoring talented aspiring artists usually catch the interest of the upper class – the elite who customarily donate ridiculous amounts of money to the cause, which results in a higher salary to the CEO. 

A nonprofit organization cause may require less money; therefore, more money would be available to pay the employees a decent salary, starting with the CEO.  As in the example of the nonprofit organization that sponsors aspiring artists, the beneficiaries contribute with a generous amount of money, which is more than sufficient to sponsor the artists and support the nonprofit organization’s human resources. In the same way, other causes demand a tremendous amount of money for the cause, therefore, causes a shortage of money to spend on the employee’s salary, including the CEOs themselves. Freeing captivated wild animals alone requires a larger amount of money. The aids from the middle-class contributors in minuscule inconsistent payments can barely cover the projects’ requirements, let alone paying the CEOs decently. 

The annual budget of the nonprofit organization is essential to determine the CEO’s income. Naturally, the more the annual budget, the more money can help the cause and guarantee the CEOs a higher salary. Needless to say, nonprofit organizations with causes that interest the upper class usually have a huge annual budget, as was demonstrated earlier. More humble paychecks will be given to those who work for organizations that have targeted the middle class. 

Location essential criteria to determine the CEOs’ annual income, as we all know the costs of living differ from a state to another. For example, a CEO can make a living out of 70,000 per year in a place like North Carolina or Kentucky, but that’s not the case in places that costs more to live in, like New York or California, where the rents are much higher than the income of average US citizens. Nonprofit organizations gain more attention and help in crowded places and big cities, more people participating and aiding the causes of the organizations resulting in a high annual budget, therefore, a higher salary for the CEOs.

The Aid of people plays a substantial role in the nonprofit organization’s growth, but that doesn’t always mean a higher salary for the employees or the CEO of a nonprofit organization. Public perception is a major factor in how much a CEO can make in a nonprofit organization. As a CEO of a nonprofit organization, one should always keep in mind that people are donating for the cause, not the staff. Honesty and transparency with the donors can get you their trust and financial help; therefore, the organization’s prosperity and success affect the CEO’s income significantly. 

At the end of the day, the people make nonprofit organizations to help the people, so they have every right to object when their aides go to the CEO’s pocket instead of helping the cause of this organization. Public perception influences the amount of salary. 

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No one except to get rich working for a non-profit organization. However, people can make a decent living off it, especially CEOs who rank higher than the rest of the employees. The numbers vary from an organization to another.  To smaller nonprofit organizations with an annual budget of 250,000 USD, a CEO can make 45 to 46,000 on average.

Nonprofit organizations with an annual budget of 340,000 to 500,000 USD, which are considered relatively small and pay their CEOs an average of 70,000 to 97,000 USD per year. Bigger Organization who has wide publicity throughout the country has an annual budget of 6 to 13 million, rendering its CEOs astonished by 1.2 million dollars USD per year. Naturally, reaching this level of publicity and success requires years of hard work and dedication to the cause. Finally, It’s important to distinguish between a nonprofit organization’s CEOs and other CEOs regarding income. Your decision to work for a nonprofit organization shouldn’t be money-driven. The cause must be essential to the CEO to make the organization grow and prosper. 

Also read Questions to ask executives (CEO, CTO, COO)at a company town hall

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