Compensation decreases in 2021 for non-profit senior managers

Results of Charity Village’s annual Canadian Nonprofit Sector Salary and Benefits Study are in, showing an increase in cash compensation across all positions in the charitable sector with the notable exception of senior management.

“This group saw a decrease in compensation of 1.4 per cent,” the report notes in the executive summary of the report, released this week . “Looking at the sector in general, compensation is growing slowly. Over the nine-year period from 2011 to 2020, sector-wide compensation has grown at an average rate of 0.6 per cent to 1.8 per cent per year depending on the level.”

Given that non-profit work is so predominantly female, it’s a disappointment to see that male CEOs of non-profits are earning an average 26 per cent more than their female colleagues. The report notes that partly that’s because the biggest non-profits are more likely to be headed by men, while smaller non-profits tend to be led by women.

The gap between compensation for men and women in the nonprofit sector continues to show men earning more than women at the most senior management level. Although the wage gap is relatively small (5% or less) for most levels, there remains a significant wage gap at the Chief Executive level, where average compensation is 26% higher among men than women. Consistent with past studies, the data continues to suggest that men working in the nonprofit sector are more likely than women to work in larger organizations, which tend to compensate at higher rates than smaller organizations.

The lack of retirement benefits for the non-profit sector remains an issue. The Charity Village report notes that just half of the participating organizations offer retirement benefits to at least some of their employees.

“Chief Executives continue to be the least likely level to receive retirement benefits (only 46% receive).”

The full report is available for purchase online at a discounted rate through Feb. 5. Take part in a free webinar Jan. 28 looking at highlights from the report and how organizations can put the findings to work.