Nonprofit Salaries Summary:

IRS Compliance and Review:

• The IRS requires that salaries at the upper end of nonprofits must be reasonable and not excessive.
• Hiring an independent compensation consultant every 2-4 years is recommended to review and ensure salaries are competitive and not excessive.

Nonprofit Salary Examples:

• Big foundations, hospitals, and colleges often pay their executives high salaries.
• National Football League's director was reportedly paid $45 million a year.

Salary Thresholds and Tax Implications:

• If a nonprofit staff member makes over $1 million in compensation, the nonprofit has tax obligations.
• The TCJA imposes a steep excise tax on salaries of certain employees over $1 million.

Constraints on Salary:

• A salary cap for nonprofits is not legally mandated, but salaries must be considered reasonable based on the market.
• Donors may cap salary coverage with their donations, leading to funding challenges if there are insufficient unrestricted funds.

Nonprofit Compensation Opinions:

• Nonprofit CEOs may receive varying compensation based on the organization's budget and complexity.
• Concerns about fair market compensation for nonprofit employees were raised, considering the challenges faced in the sector.

Nonprofit Leadership Pay:

• Nonprofit CEO salaries were compared, with varying compensation levels based on organizational size and revenue.

Challenges in Nonprofit Funding:

• Nonprofits often struggle with funding sources leading to lower employee salaries due to constraints in financing.

Personal Stories and Recommendations:

• Individuals shared experiences about working in nonprofits, the challenges, and the importance of fair compensation.
• Recommendations included exploring alternative career options like philanthropy for better pay while still making a positive impact.

Volunteering vs. Employment:

• Volunteers typically don't get paid at non-profits, while employees need to be compensated according to labor laws.

Overall, the discussion highlighted the complexities, challenges, and varying perspectives on nonprofit salaries, emphasizing the importance of fair compensation and financial stability for employees in the sector.