News about the economy and the nonprofit sector usually focuses on: 

  1. decreased revenue (from individuals, foundations, corporations, and investment earnings),
  2. increased demands for services, and
  3. organizational decisions to shut-down or merge. 

There is a story being left out!  The current economic recession has impacted nonprofit organizations’ human resource policies – specifically employee compensation and benefits packages.

Compdata Surveysrecent research explains the effects.  Some findings include: 

  1. Nonprofits have decreased budgets for pay increases; salaries, then, are not keeping up with inflation and cost of living.
  2. Increasing health insurance costs have caused nonprofit executives to make tough decisions about employee coverage.  Less employees are covered, and, for those who are, their coverage is more limited.
  3. It is increasingly difficult to offer competitive compensation packages both to attract and retain high-performing staff.
Access:  You can get the report for free; view/download the pdf.  How great!  (Other reports from the same study come at a cost.)

Methodology:  The findings come from a national survey of 4,500 nonprofit organizations – covering 2,100,000 employees.  (Please note that the data probably includes large-sized organizations that may have “overly” influenced summary findings.)