pay parity nonprofits

The nonprofit sector has endured its fair share of bad news recently. Perhaps most alarmingly, donor numbers continue to decline in the wake of the Tax Cuts and Jobs Act of 2017. As a result of the nation’s poor fundraising climate, nonprofits face stiffer competition for fewer resources and may have to make tough decisions over the coming year.

New salary statistics, however, offer a glimpse of hope for the sector. Recent numbers indicate that nonprofits offer better average salaries than their private and public sector counterparts. Interestingly, nonprofits also boast better pay parity, meaning that there is a much smaller gulf between the salaries of management and rank-and-file workers.

These revelations come from Quartz, which recently broke down numbers provided by the US Bureau of Labor Statistics.

There are, of course, plenty of positions in the private sector that offer much better compensation than similar jobs in the nonprofit sector. Nonetheless, nonprofit employees who work in healthcare, childcare, retail, and other capacities earn higher salaries and receive better benefits for their labor. Overall, nonprofit workers earn on average $7.86 per hour higher than private sector workers, accounting for both pay and benefits.

This is positive news. Younger workers search for jobs at companies and organizations with value-driven missions. As the nonprofit sector offers strong, stable wages, organizations will attract young talent looking to secure financial wellbeing while satisfying their social consciousness. Furthermore, young adults place greater significance on social and economic equality, which positions nonprofits to utilize the sector’s impressive pay parity as a recruitment tool.

Unfortunately, there is no escaping the bleak fundraising forecast. Whether or not these strong numbers continue hinges on the sector’s ability to adapt to today’s unfavorable economic conditions.


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