Nonprofit Executive Compensation Levels and their Relationship to Relevant Accounting Based Performance Metrics.

• In Event: Monitoring, Executive Compensation, and CEO Turnover

Abstract

The effect of nonprofit executive compensation on nonprofit operations in achieving their mission of maximizing contributions and minimizing expenses was investigated using forty-eight charities for the five years from 2015 through 2010 comprising 236 cases. Accounting based performance measures included two measures of income; public donations and government grants, and three measures of expense; program spending, fundraising and information technology. Results suggest more highly compensated executives are likely to utilize professional fundraising and increased technology. In the case of fundraising, these efforts seemed productive as higher levels of contributions were directly related to fundraising expenses.

Author

• Janet F Phillips, Southern Connecticut State University