AND MORE PAY, PERKS 2012 COMPENSATION HIGHLIGHTS OF THE AFP AND BENEFITS STUDY. Salary Survey BY CATHLENE WILLIAMS, PH.D., CAE

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1 PAY, PERKS AND MORE BY CATHLENE WILLIAMS, PH.D., CAE HIGHLIGHTS OF THE AFP 2012 COMPENSATION AND BENEFITS STUDY Alex Williamson/Getty Images 36 Advancing Philanthropy July/August 2012

2 Some things don t change as much as one would expect. Despite the fact that women make up a significant majority of members of AFP (as of January 2012, the association s membership was 74 percent women compared to 26 percent men), men continue to earn more than women in both the United States and Canada. This is not news. With the exception of 2005, in the United States the gap has consistently been approximately $20,000 since In Canada, the gap narrowed significantly in 2007, with only a C$3,353 difference in salaries; however, in , the gap was again significant (approximately C$16,000, on average). On a more encouraging note, results of the AFP 2012 Compensation and Benefits Study show that more than half of the study s respondents reported salary increases in About one-third of respondents in both the United States and Canada indicated no change in their salary, another third reported increases of 1 to 3 percent, about 10 percent reported increases of 4 to 6 percent and about 15 percent reported increases of 7 percent or more over their 2010 compensation. Less than 10 percent reported salary decreases. The overall average salary for U.S. respondents was $75,595 in 2011, and the median salary was $66,000. (See Table 1 for salary trends from ) The top 25 percent of U.S. fundraisers reported being paid $90,000 or more in 2011, while the bottom 25 percent reported salaries of $50,000 or less. The overall average salary for Canadian fundraisers was C$78,067, and the median salary was C$70,000. (See Table 2 for salary trends from ) The salary for the top 25 percent of Canadian fundraisers was C$91,000 or more, and those in the bottom 25 percent earned C$55,000 or less. Factors Relating to Salary What factors affect salary? The survey asked respondents to describe their organizations and the areas in which they operate, as well as personal characteristics such as age, academic background, years of experience and level of responsibility. All of these factors help to explain differences in salaries among fundraising professionals. 1. Age. The 2011 data show a general correlation between age and fundraising salary. In the United States, average salaries showed a steady increase with age, from $34,620 for individuals under the age of 25, to $91,065 for those who are 65 years or older. In Canada, the average salary for those under age 25 was $39,000, and salaries increased to $87,627 in the age range. After age 55, average salaries declined slightly. (See Charts 3 and 4.) In the first quarter of 2012, the Association of Fundraising Professionals (AFP) conducted its ninth annual Compensation and Benefits Study. The study was conducted via a Web-based survey instrument, and respondents were asked to report on their salary, benefits and job satisfaction for the calendar year The AFP 2012 Compensation & Benefits Report is available for download on the AFP website at Detailcfm?ItemNumber=11222 (login required). Nonmembers may purchase the report for $95 through the AFP Professional Advancement Department. For more information, please contact the AFP Professional Advancement Department at profadv@afpnet.org. Chart 1 $120,000 $120,000 $100,000 $100,000 $80,000 $80,000 $60,000 $60,000 $40,000 $40,000 $20,000 $20,000 $0 $0 Chart 2 $100,000 $100,000 $90,000 $90,000 $80,000 $80,000 $70,000 $70,000 $60,000 $60,000 $50,000 $50,000 $40,000 $40,000 $30,000 $30,000 $20,000 $20,000 $10,000 $10,000 $0 $0 Average Fundraising Salaries by Gender, U.S. Respondents Male Male Female Female Average Fundraising Salaries by Gender, Canadian Respondents (in Canadian dollars) Male Male Female Female Advancing Philanthropy 37

3 Demographics of Survey Respondents Seventy-seven percent of respondents were females; 23 percent were males. Ninety-two percent of respondents indicated they are Caucasian. In both the United States and Canada, the top four fields or backgrounds from which fundraisers come to the profession are public relations/marketing (17 percent), school/student (13 percent), business (12 percent) and education (10 percent). The primary reasons cited for choosing one s current position were: the position offered more challenge or scope (26 percent), and the position provided an opportunity to do more meaningful work (25 percent). Twenty percent said they found their current position though an ad on a website, 14 percent said they received a tip from an associate in the field, 13 percent were promoted within the organization and 14 percent cited a personal ask by the CEO of the organization. The types of organizations most represented by respondents were health services, health problems and higher education. Affiliation with these three organizational types was reported by 59 percent of survey respondents. Fifty-five percent of respondents reported they are 45 or older, and an additional 24 percent reported they are between the ages of 35 and 44. Twenty percent of practitioners said they are in the age range, and only 1 percent are under the age of 25. More than half of respondents in both the United States and Canada indicated they are responsible for overall management of multiple fundraising functions. Twenty-one percent of all respondents hold the CFRE certification (20 percent of U.S. and 23 percent of Canadian respondents). Sixty percent hold other professional certifications, and 18 percent hold no professional certifications. Forty-one percent of U.S. and 43 percent of Canadians have taken continuing education programs or graduate courses (certificate, master s, Ph.D.) related to fundraising, nonprofit management or philanthropy at a college or university. Seven percent of all respondents plan to take courses in the future. Table 1 U.S. Salaries by Year Mean (Average) 2002 $65,751 $60, $71,740 $62, $80,685 $72, $67,181 $58, $71,305 $60, $72,683 $63, $71,199 $63, $76,482 $66, $76,193 $65, $75,595 $66,000 Table 2 Canadian Salaries by Year (in Canadian dollars) Mean (Average) 2002 $63,334 $56, $64,316 $60, $65,183 $60, $65,767 $60, $71,827 $65, $74,376 $68, $71,511 $65, $79,554 $70, $78,388 $70, $78,067 $70,000 Alex Williamson/Getty Images 38 Advancing Philanthropy July/August 2012

4 Alex Williamson/Getty Images 2. Education. There was a strong positive correlation between average compensation and level of education. In the United States, those who reported holding a doctoral degree had the highest average compensation at $97,223. Only 200 individuals of the 2,742 U.S. respondents reported having less than a baccalaureate degree. In Canada, individuals with MBAs were the highest earners, with an average salary of C$91,032. (See Table 3.) 3. Years of professional experience. U.S. fundraisers earnings ranged from an average of $51,438 for those with less than four years of fundraising experience to $118,096 for those with 30-plus years of experience. In Canada, there was a similar pattern. Those with less than four years of experience reported an average salary of C$51,621. Those who have 20 to 24 years of experience reported the highest salaries, with an average salary of C$107,295. (See Table 4.) 65+ years old Chart years old 65+ years old years old Chart 4 4. Certification. Having a certification years old credential correlates positively with salary. In the U.S. sample, Certified Fund years old years old Raising Executives (CFREs) reported Under Age 25 average salaries more than $23, years old higher than the average for respondents with no certification. Individuals with Under Age 25 an Advanced Certified Fundraising Executive (ACFRE) certification reported salaries nearly $50,000 higher, and those with a Fellow of the Association for Healthcare Philanthropy (FAHP) earned $76,000 more on average than those with no certification. In Canada, CFREs reported average salaries more than C$31,000 higher than the average for respondents with no certification. The four Canadians respondents who hold an ACFRE or FAHP also reported significantly higher salaries than individuals with no certification, although the sample is too small to be generalizable. (See Table 5.) 5. Position. The Compensation and Benefits Study breaks out organizational and personal variables by position. Since responsibilities of any given job title may vary by organization, the survey asked respondents to identify their position according to general level of responsibility. The positions examined include: CEOs with fundraising responsibilities; Chief development officers (including vice president or director of development, fundraising or institutional relations the top paid position with responsibility for managing fundraising); years old years old years old years old years old Under Age years old $0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90, ,000 Under Age years old years old 65+ years old years old years old years old Average U.S. Salary, by Age $0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90, ,000 Average Canadian Salary, by Age (in Canadian dollars) $0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90, ,000 Who Was Surveyed? $0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90, ,000 The sampling frame for the study was AFP membership in the United States and Canada as of Jan. 1, At that time there were 26,221 active members in the member database. All active members in the United States and Canada with addresses were polled. A total of 21,572 members in the U.S. and 3,030 members in Canada successfully received the ed survey. (Note: There is some chance of bias in that those with no address were not surveyed. The decision to limit the survey to those with addresses was based on cost effectiveness and efficiency in data collection.) A total of 3,204 AFP members (2,742 in the United States and 462 in Canada) submitted usable responses by the time the survey closed, a response rate of 12.7 percent for the United States and 15.2 percent for Canada. An analysis of the demographic characteristics of both groups of respondents indicates that they are fully representative of the AFP members in the United States and Canada. Advancing Philanthropy 39

5 Table Fundraising Salaries by Highest Education United States Canada (in Canadian dollars) Mean (Average) Mean (Average) High school diploma/ged $70,932 $65,000 $61,333 $59,000 Some college (no degree) $61,266 $56,000 $67,113 $60,000 Associate degree $63,064 $60,000 $77,858 $70,000 Baccalaureate degree $73,773 $65,000 $80,181 $70,000 Post-graduate (no degree) $76,288 $68,000 $68,560 $62,000 MNA $76,643 $70,000 $84,000 $84,000 MBA $84,993 $75,500 $91,032 $80,000 Master s degree (Other) $75,363 $65,000 $82,414 $80,000 Professional degree $92,107 $79,500 $90,000 $83,000 Doctoral degree $97,223 $85,000 $80,000 $80,000 Deputy development officer (including deputy director/associate director or equivalent the No. 2 person with responsibility for managing fundraising); Program manager (program director or manager with responsibility for managing a particular program or programs, e.g., annual fund or planned giving); Other staff (including coordinator, assistant, researcher, writer); Consultant/principal (including principal, senior staff member, campaign director in a full-service firm that handles surveys, planning, organization, campaign direction, etc.); and Consultant/others (including other positions in a full-service firm, including specialists). CEOs and senior-level consultants had the largest average salaries. CEOs in the United States earned an average of $83,874; CEOs in Canada earned C$102,072. Senior-level consultants had average salaries of $83,904 in the United States and C$90,566 in Canada. (See Table 6.) 6. Organizational differences. Salaries also varied by subsector. In the United States, fundraisers working for consulting firms enjoyed the highest average salary of $98,140, followed by Note: All data are reported, even when there is a low number of respondents in a table cell (thus some apparent anomalies). The reader should be cautious about any data with a cell frequency of less than 20 respondents. Please see the full study for more detailed information. That Darn Glass Ceiling Is Global To read more about women in the nonprofit sector in the United Kingdom, see Close to Parity: Challenging the Voluntary Sector to Smash the Glass Ceiling by Rowena Lewis, 2010 Clore Social Fellow, at uk/userfiles/documents/resources/ fellows/rowena_lewis/close_to_ Parity_Jan_2012.pdf. individuals employed by government agencies ($88,537), organizations focused on health problems ($87,687) and public broadcasting ($87,597). (See Table 7.) In Canada, fundraisers working for government agencies enjoyed the highest average salary of C$100,861, followed by individuals employed by higher education institutions (C$83,459) and organizations focused on health problems (C$93,880). (See Table 8.) 7. Geographical location. Within the six regions of the United States, average salaries for all respondents ranged from $70,454 in the North Central area to $82,059 in the Northeast region. Within the three regions of Canada, average salaries ranged from C$56,040 in the Eastern provinces to C$83,138 in the Central provinces. As may be expected, fundraisers employed in larger metropolitan areas reported higher salaries than those working in less populated areas. In addition, fundraisers working in international and national organizations reported average salaries higher than those affiliated with local or state/provincial/regional entities. 8. Organizational budget. Larger organizational budgets and funds raised correlate with higher salaries as well. Alex Williamson/Getty Images 40 Advancing Philanthropy July/August 2012

6 Average salaries in the United States ranged from $56,372 in organizations with budgets less than $250,000, to $107,187 in organizations with budgets of $75 million or more. In Canada, the range was C$55,267 to C$93,593. Salaries ranged from $47,642 in U.S. organizations that raised less than $100,000, to $112,787 in organizations that raised $100 million or more. The salary range in Canada was C$50,700 to C$92,209. Job Satisfaction Are fundraising professionals happy in their chosen careers? Forty-two percent of respondents overall are very satisfied with their fundraising careers and 41 percent are somewhat satisfied. Less than 7 percent are somewhat dissatisfied or very dissatisfied about their chosen profession. What pleases fundraisers most about their work? Study results show that respondents are very satisfied with their relations Table Fundraising Salaries by Years of Professional Experience United States Canada (in Canadian dollars) Mean (Average) Mean (Average) Less than 4 years $51,438 $45,000 $51,621 $45, years $63,064 $56,750 $63,041 $60, years $66,309 $62,000 $69,618 $65, years $73,839 $68,000 $78,836 $71, years $84,536 $78,000 $102,854 $92, years $95,001 $85,000 $107,295 $91, years $110,234 $93,000 $104,947 $100, or more years $118,096 $100,000 $102,800 $105,000 Table Fundraising Salaries by Professional Certification United States Canada (in Canadian dollars) Mean (Average) Mean (Average) CFRE $94,033 $82,000 $99,357 $89,000 ACFRE $120,238 $125,000 $107,650 $100,000 FAHP $146,688 $160,000 $250,000 $250,000 Other $70,289 $62,000 $72,468 $65,000 None $70,523 $61,500 $68,145 $63,000 Table Fundraising Salaries by Fundraising Position Mean (Average) United States No. of Respondents Mean (Average) Canada (in Canadian dollars) No. of Respondents Chief executive $83,874 $75, $102,072 $90, officer Chief development $82,722 $71,000 1,330 $82,503 $75, officer Deputy $71,272 $65, $78,876 $75, development officer Program manager $64,902 $60, $68,434 $65, Other staff position $41,699 $40, $47,705 $48, Consultant/ $83,904 $80, $90,566 $82, principal Consultant/other $66,144 $50, $43,500 $46, Advancing Philanthropy 41

7 Table Fundraising Salaries by Organizational Type, U.S. Respondents Mean (Average) No. of Respondents Arts/cultural $66,672 $60, Higher education $82,597 $70, Primary/secondary education $70,806 $66, Religion-related $68,564 $60, Civic/public affairs $75,099 $68, Health problems $87,687 $75, Health services $66,228 $61, Social service $70,669 $63, Environmental $67,634 $61, Public broadcasting $87,597 $80, Scientific or research $69,019 $63, Trade/professional association $74,464 $65, Federated appeals $59,979 $52, Government $88,537 $80, Consulting agency $98,140 $79, International/emergency relief $67,730 $60, Community development $60,026 $53, Table Fundraising Salaries by Organizational Type, Canadian Respondents (in Canadian dollars) Mean (Average) No. of Respondents Arts/cultural $61,999 $60, Higher education $83,459 $73, Primary/secondary education $59,840 $50,000 5 Religion-related $100,000 $100,000 1 Civic/public affairs $73,016 $69, Health problems $93,880 $84, Health services $66,915 $64, Social service $59,975 $55, Environmental $57,200 $57,200 2 Public broadcasting $60,357 $57,500 7 Scientific or research $72,333 $75,000 3 Trade/professional association $73,375 $67,500 8 Federated appeals $143,250 $143,250 2 Government $100,861 $90, Consulting agency $74,257 $69, International/emergency relief $58,882 $55, Community development $77,313 $78, with colleagues and feel that their interests are a good fit with their organizations. The variety of their work is very satisfying, and they feel they have ample opportunities to apply their skills and experience (see Table 9). Eighty-four percent of respondents agreed or strongly agreed with the statement, I feel very committed to the sector in which I am currently employed. Eighty-three percent of U.S. and 34 percent of Canadian respondents agreed or strongly agreed with the statement, To stay in my sector I am willing to work for less pay than I could receive elsewhere. About one-third (37 percent) of U.S. and two-thirds (62 percent) of Canadian respondents agreed or strongly agreed that their chances for career advancement in their current work sector are good. Turnover Fifty-two percent of United States and 51 percent of Canadian respondents plan to serve in their present position indefinitely. Seventeen percent of United States and 18 percent of Canadian respondents would like to move into a higher management level at work. Fifteen percent of United States and 13 percent of Canadian respondents would like to move to a different fundraising organization. Only 3 percent of U.S. and 4 percent of Canadian respondents want to leave fundraising for a different field. Their reasons included insufficient staff personnel, leadership s lack of appreciation of fundraising and competition from other assigned duties. Asked whether they had looked for a job with another employer in the last 12 months, 43 percent of U.S. respondents and 47 percent of Canadian respondents said yes. In addition, 9 percent of U.S. and 10 percent of Canadian respondents indicated they had made plans for self-employment in the last 12 months. Sixty-one percent of all respondents said they had thought about leaving their job in the last 12 months, primarily to earn a higher salary (39 percent) have more responsibility and authority (31 percent) find a less frustrating work environment (29 percent) engage in more interesting or challenging work (24 percent) have greater opportunities for career advancement (20 percent) 42 Advancing Philanthropy July/August 2012

8 Table 9 Average Ratings of Factors Affecting Job Satisfaction, All Respondents (Scale: 1 is very dissatisfied; 5 is very satisfied) Alignment of my interests with the mission of the organization Relations with co-workers Variety of work Alignment of the job with my work skills and expertise The schedule of my working hours Opportunities to apply my skills and expertise Respect from community members Autonomy in doing my work Relations with other volunteers Relations with supervisors Fairness of employer s rules and regulations Relations with board members Ability to balance work with my personal and family life Realistic expectations for my work performance Ability to meet my career goals and aspirations Training opportunities available to me Job security Amount of recognition received for work Clear directives from supervisors Adequate support services to do my job My current workload Opportunity for advancement The average U.S. respondent has held 3.3 fundraising positions in his or her career; in Canada, the average is 3.4 positions. When asked about the longest period of time employed in the same fundraising position within the same organization, the average for U.S. respondents was 6.2 years, and the average for Canadian respondents was 5.5 years. About a quarter of participants in both the United States and Canada indicated they have worked in a position that was terminated. The average number of years in the position when the termination occurred was 3.7 years for U.S. respondents and three years for Canadians. The mean turnover rate (number of years in fundraising divided by the number of fundraising jobs held) for all respondents to the survey was 4.4 years per job. For U.S. respondents the rate was 4.5 years per job, and for Canadian respondents the rate was four years per job. Benefits The survey also asked respondents to describe medical/ health, retirement and other benefits. 1. Medical/health benefits. Ninety-two percent of U.S. and 89 percent of Canadians reported their organization provides medical insurance or other medical payment plans. In addition to basic medical coverage, dental insurance and prescription drug coverage were provided to more than 65 percent of U.S. respondents and more than 85 percent of Canadians. Approximately 60 percent of respondents in both countries were offered vision insurance. Nearly 70 percent of respondents in both countries said that 50 percent or more of their medical insurance costs were paid by their employer. Seven percent of U.S. and 11 percent of Canadians reported their employer pays no health insurance premiums. 2. Retirement and other benefits. In the U.S., 85 percent of respondents indicated their organization offers a retirement plan. Sixty-eight percent of Canadian respondents reported having one. Other benefits reported include professional dues, group life insurance, disability insurance, cell phones, parking subsidies and tuition reimbursement. 3. Leave policies. Ninety-three percent of U.S. respondents said they receive annual leave, 85 percent receive medical leave, 67 percent receive bereavement leave, 26 percent receive professional development leave, 26 percent receive unpaid parental leave, 21 percent receive paid parental leave, 6 percent receive sabbatical leave, and 7 percent receive other leave. Ninety-four percent of Canadian respondents said they receive annual leave, 87 percent receive medical leave, 73 percent receive professional development leave, 45 percent receive bereavement leave, 38 percent receive paid parental leave, 31 percent receive unpaid parental leave, 12 percent receive sabbatical leave, and 4 percent receive other leave. 4. Teleworking. Approximate 63 percent of U.S respondents and 68 percent of Canadians telework at least occasionally. Eighty-four percent of U.S. respondents and 75 percent of Canadians consider teleworking a desirable benefit. We would like to thank the AFP members who took the time to complete the survey to make the AFP 2012 Compensation and Benefits Study possible. Cathlene Williams, Ph.D., CAE, is a consultant specializing in curriculum development, project management and business writing. She is a former AFP staff member and is currently a consultant to AFP for ACFRE and research programs and other professional advancement projects. Advancing Philanthropy 43