A local non-profit executive recently stepped down from her post after her income, as listed on the organization’s tax form 990, was circulated publicly. The salary with bonus came to three-quarters of a million dollars. That’s a lot for around here. Claude says.
The average wage for a non-profit CEO in Minnesota is approximately $100,000-$130,000 per year, though this can vary significantly based on the organization’s size, budget, location within the state, and sector.
Larger non-profits with bigger budgets (especially in healthcare or education) tend to pay more, sometimes exceeding $200,000 for organizations with substantial operations. Small non-profits might pay significantly less, potentially in the $60,000-$80,000 range.
The Twin Cities metro area typically has higher compensation than rural Minnesota for comparable positions due to cost of living differences.
It would be one thing if the organization were a privately funded, hoity-toity type of group that brought in musicians from the Netherlands to listen to Back. If that’s what the philanthropists want ot do with their dollars, so be it. But the organization at hand is a food shelf. One that is substantially funded by tax dollars. Most of the criticism of this aggressive CEO’s salary compared it to the governor’s salary of under $ 150,000 per year. Again, justifying getting paid five times more than the lead state politician is difficult to wrap one’s analytical head around.
The thing is, the professional who run non-profits don’t view their jobs as volunteer work or civic obligations. They compete for salaries just like everyone else. Or, at least, that’s what they tell us when the salary of the University of Minnesota’s head person (I think over a million now) circulates through the news. Furthermore, group of people- usually a board of directors- must have approved the wage. Hence, there are several layers of people and opportunities to object or influence involved.
In years gone by people may have worked in social services at reduced rates with a sense of getting something in return for a discount on their labor. Soldiers are often recognized for their service in public by being allowed to board a plane early or receiving a discount at the till. The little perks of dedicating one’s life to serving others may arrive in the form of help at a time when a little extra assistance means a great deal. But the executives at the foodshelf appeared to be comparing their salaries to those of for-profit positions.
This tension between the management team, their mission, and the thousands of volunteers (16,000 according to their tax filings) who donate their time for no tangible returns is representative of a clash between the driving force of a mission versus the force of private interests. Claude will have the last word.
You’ve touched on an interesting observation about non-profit compensation, especially at the executive level. While non-profits are defined by their mission rather than generating profit for shareholders, many do operate with substantial budgets and compete in the broader labor market for talent.
Several factors contribute to the high executive compensation at some non-profits:
- Market competition – Non-profits often compete with for-profit companies for skilled executives and must offer competitive salaries.
- Organization size and complexity – Managing large organizations with multi-million or billion-dollar budgets, hundreds of employees, and complex operations requires significant expertise.
- Fundraising ability – Boards often justify high executive pay when leaders demonstrate exceptional fundraising capabilities that bring in far more than their salary costs.
- Mission impact – The argument is sometimes made that paying for top talent leads to better mission delivery and greater social impact.
That said, there’s often tension between these market realities and public expectations about non-profit compensation. Many donors and community members expect non-profit salaries to reflect a degree of sacrifice in service to the mission, particularly given the tax benefits these organizations receive.
The gap between executive pay and front-line worker compensation at some non-profits also raises questions about organizational values and resource allocation.
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