The Connecticut Association of Nonprofits (CT Nonprofits), in partnership with the Connecticut Business & Industry Association (CBIA), has released the second edition of The Connecticut Nonprofit Compensation Study. The document summarizes information submitted by 266 nonprofit companies on pay administration and the wages and salaries paid for 96 positions within the nonprofit sector.
The study debunks some myths about nonprofit compensation, especially regarding executive director pay, said CT Nonprofits COO Karen Maciorowski. In county-by-county comparisons, the study reveals salaries for executive directors statewide were reported as the lowest weighted average in Hartford County ($88,368) and highest in Litchfield County ($122,181).
The study also reveals that the economic climate is continuing to impact nonprofits statewide, with 76.5 percent of responding nonprofits not offering cost-of-living adjustments last year and 52.1 percent not planning to offer one this year to their employees.
Additionally, 57.9 percent of nonprofit respondents did not offer merit increases or bonuses in 2010 and about 30 percent not planning to offer them in 2011.
"It is important for nonprofits to have a guide against which to benchmark their own compensation practices," said Maciorowski. "This statewide snapshot is a great tool for helping nonprofits to outline how they determine and document compensation levels, in compliance with IRS regulations. In addition, nonprofits that have seen the need and value in utilizing market comparison studies and other resources to establish compensation levels for their key employees are in the best position to recruit and retain talented staff."
A copy of the report is available to CBIA and CT Nonprofits members for $100 and to nonmembers for $150. The report is available at CT Nonprofits (ctnonprofits.org/resources/publications, 860-525-5080) and CBIA (cbia.com, 860-244-1977).