Young idealists might jump into the nonprofit sector to make a difference in the world, but many believe the need for a difference in their paycheck will prevent them from taking top jobs, according to a new study.
A survey of nearly 6,000 nonprofit employees who do not hold executive director jobs found that 69 percent feel underpaid in their current positions, and 64 percent have financial concerns about committing to a nonprofit career.
Baltimore-based Annie E. Casey Foundation produced the report in partnership with CompassPoint Nonprofit Services, the Meyer Foundation and Idealist.org. The study provides some of the first statistics on a widely discussed issue among nonprofit professionals, said Patrick Corvington, one of the report?s authors and a senior associate with the Casey Foundation.
“There were some things that were startling ? the financial barriers, for example,” he said. “It?s not about, ?I?m not going to take this job.? It?s, ?I?m not going to enter this sector? because of the financial issues.”
According to the study, one-third of respondents said they had aspirations to become executive directors. Corvington said a perceived lower earning potential is partially to blame, but he added the private sector might not be more lucrative.
“If you?re working at a nonprofit with a budget less than $1 million versus a similar-size company in the private sector, I?m not sure the pay differential would be that much,” he said.
The report also cited a lack of mentoring and development to usher young nonprofit workers into an executive director?s chair, with only 4 percent of respondents saying they are explicitly being groomed to lead their organization.
Some young nonprofit professional are also leery of taking a top slot and spending all their time on fundraising and business concerns, rather than the work of the organization, said Tim Almaguer, executive director of the Friends of Patterson Park.
“It?s draining,” he said. “They started in a hands-on position like I did, then moved up, and now find they have to deal with fundraising.”
