The survey is especially useful to larger nonprofits because of extensive changes that the Internal Revenue Service has made to the annual form 990 information tax return.
Since 2001 the IRS has encouraged charities to go through a set of steps to ensure that executive compensation is set appropriately. On the revised form 990, the IRS has standardized reporting to make comparing salaries easier and requires charities to provide information about the process they use to set the salaries of employees who receive $150,000 or more in total compensation.
The survey will help you navigate through this new process and will be a primary tool to help you document the rationale you use to set the salaries you pay your executives.
Conducting your agency’s own compensation and benefits survey to satisfy IRS requirements would cost you a small fortune, maybe as much as $5,000 - $10,000 to have a consultant to get you some usable comparables. A much better alternative would be for you to acquire Fair Pay for Northern California Nonprofits: The Compensation & Benefits Survey Report for a fraction of this amount. It’s a no brainer!