Not-for-Profit Compensation Consulting

Not-for-profit organizations provide valuable services to the communities and constituents they serve. Strong missions, values, and the desire to address fundamental issues are key business drivers. While tax-exempt organizations need to focus their funds on operations, there is still a significant human capital need. Not-for-profit organizations often compete for talent across both the not-for-profit and for-profit sectors.

With rising expenses, uncertainty over government funding, and a widening gap between program service revenue and expenses, not-for-profits must adapt and seek out new sources of funding, especially through private donations.

Not-for-Profit Compensation & Intermediate Sanctions Rules

Executive compensation matters in not-for-profit organizations require additional attention relative to the requirements of Intermediate Sanctions rules (IRC Section 4958). The importance of conducting thorough, independent research is critical in developing executive compensation programs for not-for-profits that address both regulatory requirements and good governance practices.

As compensation consultants, we work with our not-for-profit clients with the focus on pay programs that are:

Competitive and informed by market data.
Attract talent and retain key positions.
Promote a “pay-for-performance” philosophy, as appropriate.
Maintain compliance with the IRS’ rules and guidelines on executive compensation.