Competing Views on Compensation – Do you/should you sacrifice to work for a non-profit?

No question that the furor over bonuses and high salaries on Wall Street is creating attention for the subject in the nonprofit world – without any clear reason for it. Over at the blog Createquity, Ian David Moss, a recent Yale B-school grad, has some interesting posts about compensation in non-profits. As we see it, he may have gone overboard with what seems to be a suggestion that the fix for excessive salaries (a problem which will be news to the executives of many non-profits) is that all organizations should unite to offer lower salaries. Indeed, to pick one example, having been deeply involved with hospital CEO compensation for many years, we’d argue that these are some of the world’s hardest jobs, juggling limited resources, community and local political demands, and criticism from the press and politicians each year when the Form 990 reveals the CEO’s compensation which someone will claim is too much for a “charity.” But Ian is generating some interesting discussions, and so we’ve listed his blog in our Blog List on the right hand column of this page.

And for a contrary view, also check out Dan Pallotta’s post at Harvard Publishing where he argues that “charity” shouldn’t mean “deprivation” for those who work for charities, and that people should be compensated for the value they produce – and must be, by any organization that wants the best person for the job.

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