Occasionally, I find myself watching the wise and wealthy Suze Orman on one of her various, televised programs for PBS. Her “People first, then money, then things” mantra is one of her positive affirmations that I take to heart. Of course, Suze is laughing all the way to the bank.

But another of her quotations is more of what I’ve been wanting to tell candidates who have greatly inflated ideas about their future compensation – “Denied!”

When I entered the nonprofit sector back in the 1980s, my first job was in a large, Ivy League development office. I knew I was not going to be making anything near what my friends were earning in banking, accounting, engineering and nursing. Earning a bonus? I don’t think so. But, I was thrilled to get education benefits and exposure to people whom I would not otherwise meet if I were an entry-level auditor at PriceWaterhouse.

While I worked hard and was committed to my job beyond the 9 to 5, I also wasn’t working 15-hour days. That was the trade-off. As I progressed up the ladder, raises came. And when I was at another large university and finances weren’t doing so well, I sacrificed a raise in return for more vacation time. I was dedicated to the mission of the school and felt I was not only contributing to its long-term health, but I also felt very fulfilled. However, if my life situation were different (say, I had small children and needed more money), then I would have needed to make the decision to leave the sector and find a different type of career.

During the past 30 years, the nonprofit world has grown tremendously, and it is now also considered a much more “glamorous” career path than when I began in it. I, along with many others, just “fell” into it. Now, it is more of a chosen and planned career path, and the sector is attracting more people who have put thought and study into ideas, philosophies and missions through post-graduate programs in nonprofit and public sector studies.

But, I, and many hiring and recruiting professionals, feel the interest explosion and rapid onset of attraction to the sector has also given people an unrealistic expectation about the compensation to expect within it. A position in the nonprofit sector never was and, for the post part, never will be as lucrative as the same position in the for-profit sector. And, just like the for-profit sector, an organization with a larger budget allows for higher pay more than one with a smaller budget. Just like in the private sector, there are economies of scale.

To help understand what to expect, a number of professional associations and publications produce salary surveys. Two of the better ones are the Association of Fundraising Professionals and one from The Non Profit Times. The most recent Compensation and Benefits Survey by the Association of Fundraising Professionals (AFP) revealed the average fundraising salary in the US has actually fallen a bit since 2009 and is now $76,193. Of course, such factors as location and type of organization make a difference. Unfortunately, gender also make a difference; while the average salary for male fundraisers totals $92,540, the average for females is $70,614 (now, that’s an issue for another blog post).

The Non Profit Times also has done a good salary survey for CEOs. The average head of a $1 million to $2.5 million sized organization earns around $96,500; at a $10 million to $25 million organization, it goes up to $173,000. And, at the very highest level of $50 million and above, the salary is around $300,000. The survey also reports that for those $50 million and above organizations, a Development Director averages a salary around $97,500. Yet, recently, I’ve had many candidates for positions think that compensation should be much higher. In the Northeast, candidates seem to believe that $175,000 to $200,000 is what a senior staff person should be making. And, that isn’t even for the top development position; that’s for the top major gifts person!

While there is no set compensation formula to follow, the IRS has attempted to set out some rules. It directs compensation packages be reasonable – but they don’t exactly spell out a definition for reasonable!

My colleague Nancy Racette, the COO of Development Resources, Inc., gives the following advice to candidates attempting to determine a fair salary:

1) Do your homework – Often, people “hear” what a colleague earns or about an organization that offers great compensation. First, people often exaggerate about their own salaries. Second, just because the incumbent has a certain salary doesn’t mean a new person will earn the same. One must take into consideration personal salary history and what the organization has in its budget to pay. Consider that organizations undergo reorganizations to rid of overpaid staff; the high salary may be the very reason the position is open!

2) Organizations can check your current salary, so don’t fib. If you are high enough on the ladder, your salary may appear in the organization’s IRS 990 form.

3) Don’t start talking salary until you are really, really a candidate. A great way to turn off a recruiter or a hiring manager is for your first question to be, “What’s the salary?”

4) Should you really make as much as the CEO? As I mentioned above, if the organization has a budget between $10 million and $25 million, and the CEO makes around $173,000, should the Vice President for Development really make $160,000? A reasonable starting salary might be more like $125,000.

5) And, finally, what are your accomplishments thus far in your career? If you have a strong, quantifiable track record, then you will be in a good position to negotiate. If you don’t, then your bargaining position will not be a strong one.

What do you think? What has been your experience in negotiating salary? What has worked for you in getting a raise from a current employer? What has worked when you have taken a new job?

With over 20 years of experience, Carmel started her career in higher education fundraising, She has an exceptional track record of placing senior staff at local, regional, national, and global organizations.

Last updated on July 29th, 2017 at 04:07 pm