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by zephharben 3554 days ago
I worked at two technology-focused nonprofits over a stretch of 11 years (mostly in management). At a well-funded nonprofit, you can expect salaries to run around 25 - 30% below market rates.

For organizations that are closely aligned with humanitarian causes (e.g. health projects in the developing world), I've noticed a much higher gap, presumably because these organizations are able to attract talent that's more passionate about the cause/willing to accept lower compensation.

1 comments

Wow that's much lower than I thought.

I've been looking through some 990s to get a rough idea, but that ballpark percentage difference is what I haven't been able to figure out.

Thanks!

There's a few statistics about salary adjustments for work that is perceived as more or less socially responsible in Jeff Schmidt's book "disciplined minds".

What is the "moral reservation premium" in salary expected in return for selling out and working for an employer seen as less socially responsible?

* a typical student would rather work as an advertising copywriter for the american cancer society than an advertising copywriter for camel cigarettes, and would want a salary 50% higher to do it for the cigarette company

* a typical student would want +17% salary to work as an accountant for a petrochemical company instead of doing the same job for an art museum

* "men are more likely than women to sell out, and this accounts for at least part of the gap in average salaries between men and women"

more detail in: R H Frank, "Can Socially Responsible Firms Survive in a Competitive Environment?" 1996