A tool exists to estimate appropriate executive compensation within the non-profit sector. This instrument analyzes organizational budget size, programmatic scope, geographic location, and other pertinent factors to provide a salary range for the chief executive officer position. For instance, a calculator might suggest a lower salary range for a small, local charity compared to a large, national organization with a significantly larger budget and staff.
The employment of such a tool promotes transparency and accountability in non-profit management. By offering data-driven salary benchmarks, these calculations help to justify compensation decisions to stakeholders, including donors, board members, and the public. Historically, determining executive compensation in this sector relied heavily on subjective judgment, leading to potential discrepancies and concerns about stewardship. These calculators provide a more objective framework.