Nonprofit Salaries See Marginal Movement in 2023

Nonprofit salaries remained relatively stagnant from 2022 to 2023, according to a new report that analyzed sector compensation in both the U.S. and Canada. 

More than 3,500 nonprofit professionals participated in the “2024 AFP Compensation and Benefits Report.” In the U.S., the average salary increased by almost 1%, rising to $96,126 in the U.S. Meanwhile, the average salary in Canada fell slightly more than 1% to $98,487.

Changes in Mean and Median Salaries from 2022 to 2023 | Credit: "2024 AFP Compensation and Benefits Report" by AFP

When surveyed in early 2024, 77% of U.S. respondents anticipated remaining with the same organization that employed them in late-2023 through this year. Another 15% planned to remain in fundraising, but at a different nonprofit. In the previous survey, 55% anticipated leaving their current position.

Here’s a look at compensation and benefits for U.S. nonprofits. 

Compensation

Though compensation rose 6.7% in 2022, that was barely enough to keep pace with inflation. Last year’s uptick is more on pace with 2021’s 1.5% increase

Regardless of year, there are four factors that are the main drivers affecting compensation, according to a 2019 AFP report that analyzed the variables statistically linked to compensation.

1. Organizational Size

For this comparison, nonprofit budgets represent the organizations’ size. Overall, large organizations paid up to 54% more, per the 2019 analysis. 

For this year’s data set, average compensation ranged from approximately $62,000 at an organization with a budget less than $250,000 to a peak of about $150,000 for nonprofit with budgets that are $100 million or larger. Nonprofits whose budgets exceeded $5 million also had average salaries above the sector average. 

2. Job Title

A nonprofit professional’s job title also plays a strong role in compensation level. Nonprofit professionals who lead fundraising efforts, such as CEOs, executive directors and directors of advancements, earn up to 25% more than other fundraising positions, according to the 2019 analysis. 

In this year’s data set, the exception to this is for organizations with budgets less than $250,000, as these nonprofits are more likely to have founders who take little to no compensation.

3. Educational Level

The 2019 analysis found a doctoral degree can result in a 15% pay bump, but incrementally each level of education tends to cause an increase in compensation. For this year’s data set, those with master’s degrees and higher made above the sector’s average salary.

Compensation by Education Level in the U.S. | Credit: "2024 AFP Compensation and Benefits Report" by AFP

4. Gender

A salary discrepancy by gender still exists in the nonprofit sector with men earning 10% more than women. The 2019 analysis even considered other factors influencing compensation, including taking time off to raise children. 

In this year’s study, women averaged $92,882 in compensation compared with men’s pay of $114,938 — a 21% gap.

Benefits

A solid 98% of U.S. respondents indicated that they received health benefits, with a majority having dental, vision and/or prescription coverage. About half of respondents indicated their nonprofit employers offered a 401(k) and/or 403(b) retirement plans. Other popular benefits included short-term disability (85%), a work-supplied computer (82%), life insurance (81%), professional dues (74%), accident insurance (50%) and paid parental leave (47%).

When it came to paid time off, U.S. respondents averaged 17 days per year. Organizations also offered, on average, 14.6 paid holidays, including “bridge days,” such as the Friday after Thanksgiving or weekdays between Christmas and New Year’s Day.