The list below includes the top three compensation packages of $1 million or more at each nonprofit rated by CharityWatch. The Compensation column includes total of base compensation, bonus and incentive compensation, retirement and deferred compensation, nontaxable benefits, and other reportable compensation as reported to the IRS (Form W-2, 1099-MISC, and/or 1099-NEC), excluding any amounts already reported by the organization in a prior year IRS Form 990. Retirement payouts, deferred compensation, severance, and bonuses that (a) comprise 75% or more of total annual compensation, or (b) total to $1 million or more are footnoted. Footnotes with additional detail are provided below certain individuals on the list.

NOTE: Due to differences in the way compensation might be allocated, high salaries do not necessarily indicate inefficiencies just as low salaries are not always beneficial. A more detailed explanation is provided below the chart.

Nonprofits generally allocate compensation based on how each member of staff spends their time. For example, the salary of a doctor who spends 100% of their time on a charity’s program activities, such as providing direct medical care, would generally be allocated 100% to program. A fundraising or development executive’s salary would be allocated 100% to fundraising. An executive director or president of a charity might spent 40% of their time on program activities, 25% of their time managing their nonprofit, and 35% on fundraising, and this person’s compensation would be allocated among program, management & general, and fundraising expenses commensurately.

Due to differences in the way compensation is allocated by charities in their IRS Form(s) 990 and audited financial statements, high salaries do not necessarily indicate inefficiencies just as low salaries are not always beneficial. Rather than perceiving a particular nonprofit executive’s compensation as too high or too low based on its nominal value, appropriate salaries are better determined by considering factors such as special skills needed for the position, relevant education and experience, and the complexity of a charity’s operations. CharityWatch encourages donors to view each nonprofit’s letter grade rating to better understand how efficiently it is operating overall prior to making a giving decision.

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