CARES magazine June 2014

Page 21

nonprofit education

fundraising & nonprofit support

Salaries

To study nonprofit compensation, we used data from a study conducted by our center in 2013.

Health Care

$158,655

Community Improvement & Capacity Building Crime & Legal Related

0

$126,260 $112,322

Philanthropy, Grant Making Foundations

$100,136

Diseases, Disorders Mental Disciplines

$100,000

50000

We found that the average salary for a Springfield nonprofit CEO/Executive Director is $88,828.The highest paying category is Health Care, averaging $158,655. The data showed a direct correlation between organizational size and compensation — especially at the top level. Small organizations typically pay the least. For organizations with budgets under $250,000, the average salary is $38,339.

100000

Revenue

The lowest paying CEO/Executive Director categories were Recreation & Sports, Animal-Related, and Environment. In a comparison with salary data from 2006, we found that there has been a substantial increase in the executive compensation. The average pay for a Springfield CEO/Executive Director has increased by 44 percent in the last 7 years. When compared to results of national nonprofit salary reports, Springfield organizations tend to pay lower average salaries, even after a cost-of-living adjustment.

150000

3.5

A 2013 report by the Springfield Regional Economic Partnership lists the gross metro product (GMP) for the Springfield metro statistical area at $16.2 billion. In our study, we found that Springfield nonprofit organizations produce $3.8 billion annually, or about 23.6 percent of the total revenue.

3.0

Tempe, AZ (.66)

Vancouver, WA (.92)

Springfield, MO (1.25)

Once again, Health Care organizations were the top revenue earners. The two largest hospitals, Cox and Mercy, accounted for more than 45 percent of all revenue. Other large nonprofits with large revenue included Convoy of Hope, Burrell Behavioral Health, Drury University, and Evangel University.

0.5 0.0 Population # Nonprofits

161,719 1,070

161,791 1,495

159,498 2,009

Interestingly, most nonprofits operate on a very small budget. More than half of Springfield nonprofits operate on less than $150,000 each year. And within this group, more than one-fourth of the organizations operate on an annual budget of less than $50,000.

Density

Cities with similar populations (National)

The study examined nonprofit density, or how many nonprofit groups exist per capita.

2.5 2.0 Group Average 1.44

1.5 1.0

Cape Coral, FL Sioux Falls, SD (3.31) (.82) 154,305 5,111

153,888 1,277

Nonprofit Organizations per 1,000 people 5

Cities with similar populations (Midwest)

4 3 2

Group Average 1.66

1 0 Population # Nonprofits

Wichita, KS (.64)

382,268 2,457

Tulsa, OK (1.02) 391,906 4,028

Lincoln, NE (1.14) 258,379 2,948

Topeka, KS (1.21) 127,939 1,557

Springfield, MO Des Moines, IA (1.25) (4.44) 159,498 203,433 2,009 8,953

We conducted several analyses to determine if Springfield's number of nonprofit groups is too high or too low. In other words, do we have too many nonprofit organizations? In a comparison of U.S. cities with a similar 2010 population, we found Springfield is actually below the average. In a comparison of similarly-sized Midwestern cities, Springfield is below average. In every comparison, Springfield's nonprofit density was below average. This helps answer the question about having too many organizations.

Nonprofit Organizations per 1,000 people

Conclusions It is clear to see that Springfield nonprofit organizations are pivotal to the economic and social well being of the city. When nonprofits thrive, it has a positive ripple effect on the entire region. To adequately serve the needs of the area, nonprofits must receive strong support from local for-profit businesses and the public sector. Support is needed in the form of financial con-

To receive copy of The 2014 Nonprofit Impact Study: 1. Download the PDF copy from www.drury.edu/nonprofit, 2. Request a printed version by emailing Dan Prater at dprater@drury.edu

tributions and volunteers to serve on boards and in program delivery. We encourage you to secure a copy of the full report, and use it to help educate yourself and others on the significance of the nonprofit industry.

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