Running a nonprofit means making tough decisions about how to allocate your limited resources. When you’re working to maximize every dollar for your mission, it’s natural to wonder: are nonprofit CEO salaries fair? Are they reasonable? And how do they stack up against similar organizations?
The truth about nonprofit CEO compensation is more nuanced than many people realize. While headlines often focus on the highest earners, the reality is that most nonprofit leaders earn modest salaries—and understanding the full picture can help you make smarter decisions for your own organization.
Whether you’re on a nonprofit board setting executive compensation, a CEO evaluating your own salary, or a donor wondering where your contributions go, these five facts will give you the clarity you need.
1. Most Nonprofit CEOs Earn Far Less Than You’d Think
When you hear about nonprofit CEO salaries in the news, it’s usually about the outliers earning six or seven figures. But the reality for most nonprofit leaders is dramatically different.
According to Candid’s 2025 Nonprofit Compensation Report—which analyzed data from over 130,000 nonprofit organizations—the median CEO compensation rose from $97,000 in 2019 to just $110,000 in 2023. That’s a modest increase over five years, especially when you consider inflation during that same period.
For small nonprofits with budgets under $2.5 million, CEO salaries typically range from $50,000 to $80,000 annually. Even at mid-sized organizations with budgets between $2.5 million and $5 million, CEO compensation rarely exceeds $150,000.
These figures reflect a fundamental truth: most nonprofit leaders aren’t in it for the money. They’re driven by mission and impact, accepting lower compensation than they could earn in the for-profit sector because they believe in the work.
Why this matters for you: If you’re setting CEO compensation at your nonprofit, knowing these benchmarks helps you stay competitive enough to attract talent while remaining responsible stewards of donor funds. If you’re a CEO, this data can help you advocate for fair pay that reflects your responsibilities
2. Budget Size and Location Matter More Than You’d Expect
Not all nonprofit CEO positions are created equal. Two organizations with similar missions can have vastly different compensation packages based on factors that have nothing to do with the quality of their work.
Budget size is the single biggest factor affecting CEO compensation. Larger organizations with more complex operations, more staff to manage, and broader regulatory compliance requirements naturally need to offer higher salaries to attract experienced leaders capable of handling that complexity.
According to the 2025 Nonprofit Compensation Report, the data breaks down compensation by organization budget size, revealing significant differences:
- Under $1 million budget: CEO salaries typically $40,000-$70,000
- $2.5-$5 million budget: CEO salaries typically $80,000-$150,000
- $10-$50 million budget: CEO salaries typically $150,000-$300,000
- Over $50 million budget: CEO salaries can exceed $400,000
Geographic location creates equally dramatic variations. A nonprofit CEO in New York City or San Francisco faces a cost of living that’s 2-3 times higher than a CEO in a rural area or small town. Organizations in major metropolitan areas must offer higher salaries simply to provide a living wage.
For example, a youth development CEO in Boston with a $4 million budget might earn $140,000, while a similar position in a smaller Midwest city might pay $95,000—not because one CEO is more qualified, but because housing, transportation, and basic living expenses differ so dramatically.
Why this matters for you: When benchmarking compensation for your organization, you need to compare apples to apples. Look at organizations with similar budgets in similar geographic areas. The IRS Form 990 provides public access to this data for any nonprofit, making it easier to find relevant comparisons.
3. Transparency in CEO Pay Directly Impacts Donor Trust
Here’s a fact that affects every nonprofit: how you communicate about executive compensation matters as much as the compensation itself.
Research consistently shows that when donors perceive CEO salaries as excessive—even if they’re reasonable by industry standards—they’re less likely to contribute. But transparency can bridge that gap.
According to nonprofit governance experts at The Law Firm for Non-Profits, “Even when executive compensation complies with legal requirements, public perception matters. Donors, the media, and the public often have strong opinions about what nonprofit leaders should earn.”
Organizations that proactively share compensation information and explain their decision-making process tend to maintain stronger donor relationships. When you show that your CEO’s salary:
- Is based on comparable data from similar organizations
- Reflects the complexity and responsibilities of the role
- Was approved through an independent process by your board
- Aligns with your organization’s values and mission
…donors are far more likely to understand and support those decisions.
Best practices for transparency:
- Publish your IRS Form 990 prominently on your website (you’re required to make it available anyway)
- Include context in annual reports about how compensation decisions are made
- Share data about how your compensation compares to peer organizations
- Emphasize the connection between strong leadership and mission impact
The nonprofits that face public backlash over CEO compensation are almost always those that try to hide the information or can’t explain the rationale behind their decisions.
Why this matters for you: Building trust with your donors isn’t just about keeping salaries low—it’s about being honest and clear about your compensation philosophy. When you share the “why” behind your decisions, you strengthen your relationship with supporters rather than creating suspicion.
4. Total Compensation Packages Include Much More Than Salary
When you’re evaluating CEO compensation, you can’t just look at base salary. The complete picture includes benefits, bonuses, and other forms of compensation that can add 20-40% to the total package.
According to IRS guidelines, boards must consider the total compensation package when demonstrating reasonableness, which typically includes:
Standard benefits:
- Health, dental, and vision insurance
- Retirement contributions (often 3-8% of salary)
- Life insurance and disability coverage
- Paid time off and sick leave
Performance-based elements:
- Annual bonuses tied to fundraising goals or strategic objectives (typically 10-25% of base salary)
- Deferred compensation arrangements
- Retention incentives for long-term stability
Other considerations:
- Housing or relocation assistance
- Professional development and conference attendance
- Car allowances or mileage reimbursement
- Expense accounts for donor cultivation
For example, a CEO with a $120,000 base salary might have:
- $15,000 in health and retirement benefits
- $18,000 performance bonus (if fundraising goals are met)
- $3,000 in professional development
- Total package: $156,000
These additional elements serve important purposes. Performance bonuses align the CEO’s interests with organizational success. Professional development ensures your leader stays current with nonprofit best practices. Retirement benefits help with long-term retention.
Why this matters for you: When you’re benchmarking compensation or evaluating what’s “reasonable,” make sure you’re comparing total compensation packages, not just salaries. And when communicating with donors, be transparent about these elements and why they matter for attracting and retaining excellent leadership.
5. The Gender Pay Gap in Nonprofit Leadership Persists—But Is Slowly Improving
Here’s an uncomfortable truth that many in the nonprofit sector would prefer to ignore: female nonprofit CEOs still earn significantly less than their male counterparts, even when controlling for organization size and budget.
The 2025 Nonprofit Compensation Report reveals that the gender pay gap has been slowly narrowing—women now earn 73 cents for every dollar a man earns, up from 69 cents in 2013. While this represents progress, it’s still a substantial disparity.
Even more troubling: at organizations with budgets over $50 million, the gap has actually widened, dropping from 82 cents to the dollar to just 75 cents. This suggests that as organizations grow and CEO compensation increases, women are disproportionately left behind.
This isn’t just a fairness issue—it’s a strategic concern for the entire sector. When talented female leaders see unequal pay, they may leave the nonprofit sector entirely or avoid seeking CEO positions, depriving organizations of diverse leadership perspectives.
Contributing factors include:
- Unconscious bias in compensation decisions
- Women being more likely to lead smaller organizations
- Less aggressive negotiation (though this is often a response to documented backlash women face for negotiating)
- Lack of transparency that allows pay disparities to persist unnoticed
What nonprofits can do:
- Conduct regular pay equity audits across all positions
- Use objective, data-driven compensation setting processes
- Ensure your board’s compensation committee includes diverse perspectives
- Be transparent about salary ranges when recruiting
Organizations committed to social justice and equity need to “put their money where their mouth is” by ensuring their compensation practices reflect those values.
Why this matters for you: If you’re setting compensation, actively work to eliminate bias by using standardized benchmarking data and transparent processes. If you’re a female nonprofit leader, know your worth and use the available data to advocate for fair compensation.
Making Smart Compensation Decisions for Your Nonprofit
Understanding nonprofit CEO compensation isn’t just about numbers—it’s about balancing fair pay for talented leaders with your responsibility to maximize mission impact. Here’s what you can do with these insights:
If you’re on a nonprofit board:
- Use reputable benchmarking data like Candid’s Nonprofit Compensation Report or IRS Form 990 data
- Create a compensation committee of independent board members
- Document your decision-making process thoroughly
- Consider total compensation packages, not just salary
- Review compensation annually based on performance and updated data
If you’re a nonprofit CEO:
- Research comparable positions at similar organizations in your region
- Understand your total compensation package, not just base salary
- Connect compensation discussions to measurable outcomes and impact
- Don’t be afraid to advocate for fair pay—attracting quality leadership serves your mission
If you’re a donor:
- Look at compensation in context of organization size, budget, and complexity
- Evaluate whether the organization is transparent about pay decisions
- Focus on the ratio of program spending to overhead, not just CEO salary
- Remember that strong leadership often correlates with greater mission impact
The bottom line: reasonable nonprofit CEO compensation isn’t a luxury—it’s an investment in the leadership that drives your mission forward. By understanding the facts, using reliable data, and maintaining transparency, you can make compensation decisions that serve both your organization and the communities you’re working to help.
Your mission is too important to lose talented leaders over compensation. Use these insights to find the balance that works for your organization while maintaining the trust of your donors and stakeholders.
Need help telling your nonprofit’s impact story to donors? Storly.ai helps you collect and share compelling stories from the people your organization serves—turning what used to take half a day into just 5 minutes. Because when you can demonstrate your impact through authentic stories, conversations about organizational investments (including leadership compensation) become much easier.
