Login Form

Business News: High Spending Nonprofits: Charities that Offer the Most Compensation

AddThis Social Bookmark Button

Ted Eytan / Flickr

When you picture a nonprofit, perhaps you think of a small charity, complete with selfless employees, minuscule wages and a fierce commitment to “the greater good.” It’s about morals over money, human decency over competitive salaries.

Expand beyond the local level, however, and nonprofits quickly become bigger, wealthier and more corporate — in some cases, practically indistinguishable from their for-profit counterparts. A few nonprofits can be downright lucrative for employees. Even if these organizations don’t turn a profit on paper, much of the extra earnings wind up on the employee payroll.

At FindTheCompany, we pored over IRS Form 990s from 2013 (latest available) to find the 25 nonprofits that spend the most on compensation. Note that “compensation” is more than just salary. The IRS also includes contributions to retirement accounts, housing and car allowances, club memberships for individuals, and other benefits. We’ll start with a chart of raw totals, then look at a second based on compensation per employee.

The top 25 organizations by raw totals include a mix of health and educational organizations. Kaiser Foundation Hospitals tops the list, a nonprofit with over $50 billion in annual revenue, as well as 9.6 million members nationwide. While Kaiser Foundation spends about 10 percent of its annual revenue on compensation, the organization also re-invests billions in “technology and facilities to support member care now and in the future,” according to a Kaiser press release. New facilities in Oakland, Redwood City and San Leandro stand as recent examples, each constructed to comply with modern health and even earthquake safety standards.

Similar to Kaiser Foundation, the next four organizations on the chart are also national health firms, each operating facilities across multiple states. This trend speaks to the high costs associated with healthcare and healthcare professionals — as well as the talent needed to run a competitive health organization. Anesthesiologists, surgeons and general practitioners routinely rank among the highest-paid careers, and each of these nonprofits must pay market rates to hire the right people.

On the education front, John Hopkins University ranks first, with just over $2 billion in compensation costs. As one of the nation’s premiere medical schools, Johns Hopkins must pay some of the same high salaries as the health organizations just above it.

In fact, every university on this list runs a nationally ranked medical school, further confirming the overall health trend. The lone exception to health and education is Battelle Memorial Institute, a science and technology development company. The organization helps scientists, researchers and healthcare professionals by supporting laboratories and developing technology.

While health and science professionals tend to be more costly than those in other industries, another factor here is organization size — each nonprofit on the list employs over 20,000 people. It’s no surprise that the Cleveland Clinic Foundation (32,575 employees), Johns Hopkins University (39,673 employees) and Dignity Health (51,991 employees) spend billions in total compensation. For this reason, it can be helpful to look at compensation per employee as well.

It might seem counterintuitive for nonprofits to lay out so much money in compensation, but the high figures result mostly from the nature of the health industry and the high number of employee — for the most part, average compensation sits just a cut above the national average salary, $50,500.

So next time you picture a nonprofit, keep in mind that the local dog shelter or clothing charity only comprise a small piece of the philanthropic landscape. Some of America’s biggest organizations also do charitable, compassionate work. And they pay pretty well, too.

Compare Millions of Nonprofit Organizations on FindTheCompany

 

Haute Tease

  • The Santorum Surge - The Road to the White House - Election 2012 - Week Seven

    AddThis Social Bookmark Button

    Rick Santorum, the former junior senator from Pennsylvania, has surged over the past week leading the once GOP front runner, former Massachusetts Governor, Mitt Romney by a little over 6.5%.

     
  • Joan Severance, Supermodel, Actress, Author, Releases Her First Book

    AddThis Social Bookmark Button

    Joan Severance, the former Supermodel and actress, is adding author to her list of accomplishments with the recent release of her first book "Manifest Your Mate: A Journey for Attraction" proving that a classic never goes out of style.

     
  • HL Real Estate: Skyline Views, Luxury Amenities: 1065 Midtown, The Only Midtown Address

    AddThis Social Bookmark Button

    It’s getting Haute in Hot-Lanta! Atlanta’s sizzling Real Estate Market skyrocketed this week when the National Football League announced the Mercedes Benz stadium home to the NFL’s Atlanta Falcons had won the bid for Super Bowl 2019.

     
  • OSCAR Trivia: 25 Facts on Lead Actor Nominee Leonardo DiCaprio

    AddThis Social Bookmark Button

    Since entering the international stage with his portrayal of a downtrodden artist in "Titanic," Leonardo DiCaprio has helmed the majority of the films he's appeared in. From the con artist in "Catch Me If You Can" to the revenge-seeking explorer in "The Revenant," DiCaprio manages time and time again to artfully portray iconic characters with cross-generational appeal.  

  • Ashland Oregon Day Trips Review - Stunning Beauty from Mountain to Sea

    AddThis Social Bookmark Button

    Ashland Oregon Day Trips, from author Barbara Tricarico, presents a beautiful collection of photographs that capture her home state in all its majesty and splendor as she travels from the golden coastline to the mountain peaks.

     
  • Tom Ridge, former Homeland Security Secretary, Headlines Espionage Expert Panel

    AddThis Social Bookmark Button

    The National Spy Museum in Washington, D.C.,  during the 2010 SALT film junket, hosted a panel of espionage experts featuring Director of Homeland Security Secretary Tom Ridge, former U.S. Intelligence officer and Middle East Counterterrorism Expert, Melissa Mahle, Kirk Whitworth, Director of Communications and Analysis under the Bush Administration and Operative and former KGB General Oleg Kalugin.

     
  • 90TH OSCARS® Performers Announced

    AddThis Social Bookmark Button

    Gael García Bernal, Mary J. Blige, Andra Day, Natalia LaFourcade, Miguel, Keala Settle, Sufjan Stevens and Oscar® winner Common will perform this year's nominated songs at the 90th Oscars® ceremony, show producers Michael De Luca and Jennifer Todd announced.