Midwest Center for Nonprofit Leadership at UMKC
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1 Leadership at UMKC
2 Trends in Kansas City Nonprofit Compensation and Benefits Leadership at UMKC
3
4 The Executive Service Corps of Greater Kansas City Kansas City Society of Association Executives Nonprofit Connect Support Kansas City
5 Important Financial Support for the past two survey cycles provided by Spencer Fane Britt and Brown LLP We Thank You!!
6 The responsibility for the quality and accuracy of the results are the sole responsibility of the research team of the Leadership at UMKC This team is comprised of Mark Culver, Cindy Laufer, Scott Helm, David Renz, and Leta Reppert
7 Determining agency-wide compensation system, strategy, and approach, including: Where we aspire to fit in the market for talent What it will take to hire desired talent What it will take to retain good performers What it will take to sustain morale Ensuring internal equity Among individuals Among categories of positions Determination of defensible compensation and benefits at time of hire for key positions Establishing financial parameters for coming year s compensation and benefits (budgets)
8 Important salary survey data for compensation strategy: Survey job description Number of position comparisons Compensation range Average salary
9 Developing a salary structure: Identify benchmark positions Determine width of salary ranges Determine dollar amounts for range minimum, maximum, and midpoint Assign positions to respective salary ranges
10 We estimate that Kansas City has more than 11,000 nonprofit organizations, including: About 7,525 public charities (501c3s) About 2,000 congregations Other types include: Associations Business Leagues & Chambers Various Specialized entities There is no accurate estimate of unregistered unincorporated charitable associations
11 The number of charitable organizations with revenue over $25,000: 2,515 or 33% Number of charitable organizations with revenue below $25,000: 5,009 or 67% 77 Budget Size 33 Over $25K Under $25K Leadership at UMKC
12 Data was collected during the first five months of 2014 (February pay cycle) All registered nonprofits in the Greater Kansas City Metro region were solicited to participate through and other communication media Data was received from 247 nonprofits
13 This survey and report focus on the compensation, benefits, and selected other HR practices of 209 public charities (501c3s) and 16 membership associations. It excludes data from grant-making foundations, governmental entities, and religious congregations.
14
15 Scope Local Metro KC 6 State Multi-State National Internatl Other
16 Percentage Under 250K 250K to 1M 1M to 5M 28 >5M 35 No Data
17 Overall, women are CEOs of more KC agencies 41% are male 59% are female However, for CEO/ED roles for very large KC nonprofits (>$25M): 63% are male 37% are female Recent studies place national rates at similar ratios for large national nonprofits: 84% are male 16% are female
18 According to national data: Women are more likely to lead a nonprofit organization than men (64% of small agencies) Men much more likely to be in the top executive roles (84% or CEOs of $50m and more agencies). Women constitute 19% of the cadre of CEOs for the nation s 400 largest charities (COP). (sources: 2013 Nonprofit Almanac, 2013 GuideStar Compensation Report, Sept Chronicle of Philanthropy)
19 The nonprofit workforce continues to be in flux. This is demonstrated by the variation of the job market within our sector. 58% of agencies added full-time positions in 2013 (35% added 2 or more) 46% added part-time positions 35% of the agencies responding eliminated fulltime positions in 2013 (compared to 30% in 2011) 22% eliminated part-time jobs
20 Percentage of Agencies with Rates of 21 None 35 1 to 5 % 6 to 10% to 15% 16 to 25% More than 25%
21 35% eliminated one or more positions Reasons given for staff cuts, ranked in importance (agencies could offer more than one reason): Restructuring (cited by 100% of these agencies) Budget Constraints (cited by 82%) Program/position elimination (cited by 73%) Grant termination or non-renewal (cited by 36%)
22 34% expect to add positions in coming year: 27% report they will add full-time staff More than half of these will add more than one 20% report they will add part-time staff
23 Trends in Compensation and Benefits
24 Compensation has increased, in Kansas City and across nation, but Some reflect salary increases Many reflect bonuses Some include incentives Nationwide, annual salary increases in 2012 averaged about 3% (annual) across nonprofits Median CEO raises were 3.1% (Chronicle of Philanthropy Sept 26, 2013)
25 76% of responding agencies reported providing some salary increase last year (up from 65% in 2011).
26 Type of Increase 47% awarded at least partly on merit 19% based increase on cost of living increases 4% awarded employees for length of service 31% awarded across the board increases Leadership at UMKC
27 79% of agencies responded that they anticipate giving salary increases this fiscal year. 16% expect to award 5% or more 9% expect to award 4% 50% expect to award 3.0% to 3.9% 20% expect to award 2.0 to 2.5% 5% expect to award less than 2%
28 The decision to award salary increases is being affected by, ranked in order of importance (agencies could offer more than one answer): Budget restrictions (86%) Employee retention (64%) Information from other agencies (42%) Survey data from formal surveys (41%) Consumer Price Index/Inflation (32%)
29 Generally speaking, Kansas City salaries will be less than those of salaries in many other metro regions due to cost of living as well as organizational and community influences. Kansas City cost of living, for example, is nearly: 20% less than that of Chicago 13% less than that of Minneapolis/St. Paul 44% less than that of Washington DC
30 Vice President Development Chief Executive (Executive Director, President, etc.)
31 Manages fundraising activities including: Individual, corporate events Foundation fundraising Direct mail Grant proposals Donor research/record keeping/recognition May include all Marketing responsibilities.
32 Who is in the job? 73% of incumbents are female, 27% male.
33 Compensation Kansas City average (mean) salary is $75,444 (over 7% more than the $70,107 level of 2011) Kansas City median salary for VP of Development is $68,581 (6% over 2011 median of $65,000); average (mean) salary is $102,789 (about 5% lower than the 2011 average of $107,726). National average salary for VP/Director of Development is 107,741 (about 7% greater than the 2011 average of $100,600; [source NP Times 2014]) Of course, this varies substantially based on agency size and budget!
34 Position Levels: 66% Executive Director/President 30% Executive Director 4% Agency Executive Administrator 59% are female, 41% are male
35 Compensation Kansas City median CEO salary is $86,557 (3% over 2011 median of $83,675); average (mean) salary is $102,789 (about 5% lower than the 2011 average of $107,726). National average salary for CEO/executive directors is $118,630 (up over 4% from the 2011 average of $113,440 [NP Times 2014]) Of course, this also varies substantially based on agency size and budget!
36
37 Only three over 50% Paid attendance at job-relevant conferences / seminars (74%) Cell Phone (57%) Professional association dues (54%) Significant Change From 9% to 30%
38 Medical insurance: 64% Dental insurance: 57% Basic life insurance: 54% Retiree medical insurance (under age 65): 2% Retiree medical insurance (over 65): 4% Long term care plan: 7% Defined benefit plan: 8% Offered Most: Offered Least
39 Full Time Employees Average Median Mode Maximum Number of Leave Days Earned per Year Maximum Number of Sick Days Earned Per Year
40 Bereavement: 64% Court Service: 55% Job Related Training: 49% Important note: Only 24% of agencies reporting provide for maternity leave
41 46% of nonprofit employers report that only full-time employees are eligible for these benefits. 20% of nonprofit employers report that all employees are eligible. 11% provide no response regarding such benefits coverage 28% extended benefits to unmarried partners
42 29% report ACA will impact benefits 6% report ACA requires them to provide benefits not previously provided 2% report sending employees to the Marketplace 3% report they will cut staff or move FTEs to PTEs because of ACA 17% report other negative impacts of ACA
43 A couple final notes The Leadership will present a half-day workshop in the fall on compensation, benefits, and the Total Rewards Approach to compensation. The 2014 Salary Survey Report may be ordered by contacting Mark Culver at the Center: or culverm@umkc.edu. David Renz is available at renzd@umkc.edu Scott Helm is available at helmst@umkc.edu
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