Preliminary Tax-Exempt Executive Compensation Report
The SalaryExpert® Preliminary Tax-Exempt Executive Compensation Report competitive executive compensation data for United States tax-exempt organizations.
Each report takes into account organization size, industry, geographic location, and the timeliness of executive compensation data, drawing exclusively from a survey analysis of Form 990, Form 990-EZ, and 990-PF filings. Your report also provides compensation and financial data for comparable organizations that you select. This gives a representative peer group comprised of real executives, displaying their actual compensation information.
Executive Compensation Report Features:
The SalaryExpert® Preliminary Tax-Exempt Executive Compensation Report is suitable for use in salary negotiations and the evaluation of job offers. Report features include:
- Executive Compensation Data: Review total compensation data (base pay, bonus, benefits, and allowances) for your position, location, and industry (selecting from 682 NTEE industry sectors). This data comes from direct analyses of over 2 million Form 990, Form 990-EZ, and Form 990-PF returns.
- Comparables Data: Review the financial and executive pay histories for comparable organizations within the NTEE industry sector, size range, and geographic area you select. Raw source data is accessible via PDF copies of Form 990, 990-EZ, and 990-PF returns filed by the tax-exempts with the IRS. The comparable entities should reflect the position, location, and industry you select.
- Position Profile: Examines what is expected in terms of responsibilities, functions, and skill requirements for the selected executive position.
- Overview of Executive Compensation: Provides a behind-the-scenes look at how a compensation committee determines
executive salaries, including analysis of the common variables used in the determination. This section also reports an estimated salary increase for the selected NTEE industry sector.
- Corporate Governance: Provides answers to common questions in regard to data integrity and challenges to the report itself.
This Preliminary Tax-Exempt Executive Compensation Report is suitable for use by the compensation committees and top management of small nonprofit organizations, but only as a preliminary starting point. It provides a "best estimate" of pay based upon like positions in like organizations or highest positions paid.
For more in-depth compensation analyses, please utilize a compensation consultant or a comprehensive salary survey database.
- Nonprofit Comparables Assessor: Research executive pay at tax-exempt organizations. Identify reasonable compensation ranges and pinpoint outliers (organizations that pay well above or below market). Review the executive pay histories (including total cash compensation and benefits), along with the financials (revenue, grants, and assets) of comparable organizations that you can hand pick. Available on an annual subscription basis. More.
- Executive Compensation Assessor Software: Analyze executive pay for over 500 management position titles in for-profit US, Canadian, and European organizations. Choose comparables to review their financial and executive pay histories. Establish executive salary structures and determine competitive salary increase percentages. Available on an annual subscription basis. More.
- Salary Assessor Survey Software: Research competitive salary ranges for more than 5,000 jobs in the US, Canada, and Europe. This reliable salary survey calculator is utilized by over 80% of the US Fortune 500 to set individual employee pay, update salary structures, and set pay increases. Available on an annual subscription basis. More.
- Global Salary Calculator: Calculate overseas salaries for 100,000 jobs in 200 countries. Includes job descriptions and local cost-of-living information. Available on a calendar-year subscription basis (expires 12/31/2013). More.
The advent of intermediate sanctions (IRC § 4958) has brought about renewed interest in executive compensation arrangements within 501(c)(3) and 501(c)(4) organizations.
In his memorandum regarding intermediate sanctions, IRS Commissioner of Exempt Organizations, Steven T. Miller provided a 16-point checklist for purposes of establishing a rebuttable presumption of reasonableness regarding reasonable compensation for applicable charitable and social-welfare organizations. See "Rebuttable Presumption Procedure Is Key To Easy Intermediate Sanctions Compliance." The requirements include, without limitation, the following:
- description of the types of comparability data relied upon
- the reasonable total compensation per the comparability data relied upon
- written documentation evidencing that the board has obtained and relied upon comparability data
This SalaryExpert Preliminary Report is likely NOT sufficient to establish a rebuttable presumption of reasonableness, although a safe harbor exists for organizations with less than $1 million in revenue (in this case it may suffice). This is a starting place for organizations of $1 million or less in annual revenue.
For more comprehensive analyses, please see ERI's Nonprofit Salary Survey Assessor software.
To learn more about intermediate sanctions regulations, see ERI Distance Learning Center Course 18: Intermediate Sanctions.