C-suite executives at not-for-profits need to be smarter and more aware of government guidance and donor sentiment regarding compensation in the not-for-profit sector. Executives should lead and educate their boards about this environment and determine ways to make reasonable and positive decisions within an appropriate and legal framework. Boards and executives both must be aware of public disclosure requirements and be prepared to publicly discuss the reasoning and context behind compensation decisions.
Compensation, Benefits Programs for Not-For-Profit Organizations & Executives
Secure Benefits Northeast has worked with not-for-profit organizations for over 40 years
concentrating in health care, research, education, social service agencies and credit unions. Our team understands that the boards of these organizations need the tools to determine appropriate compensation for their top leaders, as well as the discussions to support their decisions. We offer guidance through this comprehensive fiduciary process, along with extensive knowledge of the compliance and tax requirements of the Internal Revenue Code and regulations as well as state statutes and regulations.
Shortfalls often exist in typical group benefits: life insurance, disability benefits and retirement programs.
Although not-for-profits are unable to offer equity programs such as stock options and stock grants as part of their compensation packages, major organizations in this sector should consider alternative compensation programs to maintain a competitive position in hiring, recruiting and retaining talent. The executives of not-for-profits are not volunteers. They should be compensated according to the organization’s size and challenges, commensurate with similarly situated private sector firms. The bottom line is that in these times, top-caliber, experienced senior management is crucial for successful organizations.
