TENNESSEE NONPROFIT COMPENSATION SURVEY

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1 2014 TENNESSEE NONPROFIT COMPENSATION SURVEY Supported by:

2 WATKINS UIBERALL FIRM PROFILE Watkins Uiberall has been providing reputable accounting and business consulting services in the MidSouth since Today it stands as the largest locallyowned certified public accounting firm in Memphis. Through its affiliated company, Plan Administration Consulting, LLC, the Firm goes beyond the traditional services of tax, accounting and auditing by offering clients extended services such as retirement plan administration and healthcarefocused business advisory and consulting services. For over four decades, we have been providing reliable service to the nonprofit community in Memphis and the MidSouth. This is a result of our commitment as a firm to specialize through niches to increase quality and productivity in serving our clients. We consider the nonprofit industry to be one of those niches due to the wealth of knowledge and experience we have gained in serving that industry. Our clients include educational institutions, healthcare and medical, human services, arts and recreation, religious, and business and civic organizations. We have made significant investments in the training of our staff in this area. We also invest in the nonprofit community of Memphis by periodically hosting seminars for board members and executives which focus on topics that affect nonprofit organizations. Community Involvement At Watkins Uiberall, we are proud of the communities in which we operate and the places our employees and clients call home. We believe that, as a member of the business community, we have a responsibility to make a meaningful difference in the improvement of our region. With a commitment to actively give back to the community, we serve as a resource for various MidSouth nonprofit and charitable organizations. We encourage our employees to provide volunteer hours, financial support and other means of assistance to those organizations whose purpose is communitydriven. Our dedicated team of nonprofit specialists can assist with the following: Attestation Services Tax Services Consulting Services Retirement Plan Services The next time your organization goes out to bid for accounting services, please consider Watkins Uiberall in your RFP process. We would appreciate the opportunity to serve you. For questions or more information, please contact Daniel Moore, CPA at or dmoore@wucpas.com. Memphis 1661 Aaron Brenner Drive Suite 300 Memphis, TN fax Tupelo 417 West Main Street Suite 100 Tupelo, MS fax

3 2014 Tennessee nprofit Compensation Survey 1 Dear Survey Participant, Thank you for your participation in Watkins Uiberall s 2014 Tennessee nprofit Compensation Survey. We have enclosed the results of the surveys received from nonprofit organizations across the State of Tennessee. In an effort to present the information in a manner that can be easily interpreted and utilized, we have provided the following: A description of the survey respondents, including geography, field of work, and budget size. Summaries and graphical presentation of the reported data, including the areas of staff, boards and volunteers, and compensation and benefits. Crosstabulated data to compare many of the graphs to organization budget size. Excerpts of compensation data comparing the Memphis, Nashville, Chattanooga and Knoxville Metro Statistical Areas (MSAs) with national averages from the 2013 GuideStar Compensation Report, based on 2011 data. We would like to extend a special thanks to our supporting organizations: Alliance for nprofit Excellence in Memphis, Center for nprofit Management in Nashville, the United Way of Greater Chattanooga s Center for nprofits, and the East Tennessee Foundation in Knoxville. Without their input and cooperation, we would not have been able to gather the volume of data necessary to produce a meaningful survey. If you are not a member of one of these supporting organizations, we invite you to learn more about their services and offerings as described in the organizational profiles following the survey results. We hope you find this information useful to your organization and appreciate your participation in our survey. If you have any suggestions regarding the content for future surveys or any questions regarding the information presented, please contact Daniel Moore, CPA, Director of nprofit Services, at or dmoore@wucpas.com. For more information about Watkins Uiberall, please see our Firm Profile on the opposite page. You can also visit our website at Thanks again for your participation,

4 Tennessee nprofit Compensation Survey Introduction This is the fifth annual Tennessee nprofit Compensation Survey conducted by Memphisbased Certified Public Accounting firm Watkins Uiberall, PLLC, the Alliance for nprofit Excellence in Memphis, the Center for nprofit Management in Nashville, The United Way of Greater Chattanooga Center for nprofits in Chattanooga and the East Tennessee Foundation in Knoxville. The chief purpose of this report is to provide nonprofit leaders with comparability data that can be utilized in the process of determining reasonable compensation. This report is the only analysis of its kind in Tennessee and can be used in conjunction with national compensation studies to compare regional compensation figures with those in other parts of the U.S. In this report, we provide key national data from GuideStar s nprofit Compensation Report to aid in comparative analysis. In addition, it can be used by funders in reviewing organizational budgets and by public officials who make important decisions about public investment in nonprofits. Methodology The survey was distributed electronically in early 2015 and included 71 multiplechoice questions. This report is based on data collected from the 384 organizations that responded to the survey. Survey respondents are grouped and compared by size throughout the study as follows: Small organizations are those with gross annual revenues of less than $1 million. Mediumsized organizations are those with gross annual revenues of at least $1 million and less than $10 million. Large organizations are those with gross annual revenues of at least $10 million. National data was collected from the 2014 GuideStar Compensation Report. In addition to salary data for 39 nonprofit positions, this report includes information on hiring and compensation practices; use of parttime and contract staff; provision of insurance, retirement and other benefits; gender and ethnic composition of nonprofit executives; board and volunteer roles; and other aspects of nonprofit staffing and structure. It also details how compensation levels and staffing practices vary based on organizational size, as measured by annual revenues. Survey participants represent a broad crosssection of the nonprofit sector, with budgets ranging from less than to more than. They play diverse roles in their communities as providers of human services, education, medical care, housing, arts programming, and many other kinds of services. They are urban and rural and suburban. They represent many different fields of work, constituents, and funding models with more than half operating for at least 25 years.

5 2014 Tennessee nprofit Compensation Survey 3 Key Findings Employment 86% of respondents have fewer than 50 fulltime employees. 79% have at least one parttime employee; 22% have more than ten. 75% have hourly workers. 82% use contractors to perform some services, with the most common contracted services being bookkeeping, payroll, and marketing. 86% use volunteers, and 30% say that volunteers provide more than 20% of their labor. 33% expected their number of employees would increase this year. Executive and board leadership More than 63% of organizations have a female executive director. 73% of small organizations, 57% of mediumsized organizations, and 25% of large organizations have a female executive director. Only 13% of executive directors are of a racial or ethnic minority. More than 60% of executive directors have a graduate degree. Salaries 65% of participants say they use national or local salary surveys to help determine salaries. Some say they use IRS 990 forms, talk to peer organizations about salary, or use consultants, though many say they pay essentially as much as we can. 11% give automatic salary increases, 39% give costofliving salary increases, and 64% give meritbased salary increases to employees. 74% said salary increases would be issued this year, and 41% of this group said that raises would average 34%. Health benefits 64% offer an employerprovided health insurance plan. Only 39% of small organizations offer a health plan, compared to 92% of mediumsized and of large organizations. 36% of employers pay of premiums for their employee health insurance plan. 80% of those who offer health insurance coverage to employees also offer coverage to family members. However, only 40% pay more than 50% of premiums for family members. 65% said their health insurance plan premiums increased in Of these, 41% said the increase was more than 10%. 60% of respondents say their organizations offer employerprovided dental insurance coverage. Of these, 62% pay for at least 50% of the plan premium. 53% of respondents offer employerprovided vision insurance coverage. Of these, 56% pay for at least 50% of the plan premium. Retirement benefits 24% of respondents offer employee 401(k) plans, 22% offer 403(b) plans, and 9% offer simple IRAs. 46% say employees qualify for retirement benefits after one year; 46% offer benefits after an employee works between three months and one year. Paid leave Combined paidtime off (PTO): For those organizations that offer PTO, the most common range of PTO provided is 11 to 20 days per year for employees who have worked less than ten years. Paid vacation time: For those organizations that offer paid vacation time, the most common range of vacation time provided is six to ten days for employees who have worked up to five years and 11 to 20 for those who have worked five years or more. Paid sick leave: For those organizations that offer paid sick leave, the most common range of sick leave provided is six to ten days for those that have worked up to five years and 11 to 20 for those who have worked at least five years.

6 Tennessee nprofit Compensation Survey Participant Profile Geographic Location Of the 384 organizations that participated in the survey: 58.3% are located in the Nashville region 26.3% are located in the Memphis region 11.5% are located in the Knoxville region 3.6% are located in the Chattanooga region Field of Work Survey participants represent many fields of work. Top primary fields of work include: human services (39%), children and youth (35%), advocacy (29%), education (28%), and youth services (15%). Lowincome/Disadvantaged Populations Nearly 58% primarily serve lowincome and/or disadvantaged populations. Years in Operation Most participants are wellestablished organizations: 20% have been operating more than 50 years 31% have been operating between 25 and 50 years 38% have been operating between five and 25 years More than 10% have been operating less than five years Annual Budget in Gross Revenues Organizations of all budget sizes participated, with the greatest number being mediumsized organizations with gross annual revenues between $1 and $10 million. 20% have gross annual revenues of no more than $250,000 33% have gross annual revenues between $250,000 and $1 million 39% have gross annual revenues between $1 million and $10 million More than 7% have gross annual revenues of more than $10 million Percentage of Budget from Government Funding 38% of organizations say they receive no funding from government grants or contracts 26% say that up to 20% of their budget comes from government grants or contracts 20% say that between 20% and 60% of their budget comes from government grants or contracts 16% say that more than 60% of their funding comes from government grants or contracts

7 % ls 57.4% venues.1% Participant Profile 29.4% Years in Operation 27.7% 27.2% 34.5% 39.2% FPO Nashville 25.0% Memphis 27.1% 23.3% 42.8% 24.0% FPO Field of Work 33.2% 32.4% 29.8% Animal services Arts & culture Athletics & recreation Children & youth Early childhood Economic development Education & training Higher education Adult education Elementary & secondary education Environment & conservation Healthcare & medical Housing Human services & social welfare Literacy Mental health Research & development Senior services Supporting organization(s) Veteran affairs Youth services Other 28.4% 48.8% $999, $4,9 50million Years in Operation Less Annual than 3 4.2% Gross Revenues % % $100,00 $249,999 $9.9 50million 7.0% 20.3% 4.7% Organization Budget 2.3% Size 0.2 Fiscal $250,000 Year 9.6% 11.6% 12.7% Serve 12.3% 13.7% LowIncome Individuals Gross Revenues 14.0% 20.9% 12.3% 14.4% 6.8% Advocacy 29.4% 8.2% 6.5% 1.7% Years in Operation 6.5% 6.8% 12.6% 4.5% 6.8% 57.4% $100,00 $249, % $999, % Less than 3 4.2% 6.7% $4,9 million 27.7% 21.3% % 3.4% $5 29.9% million 5.9% 6.4% 42.6% Chattanooga 6 10 $10 million 9.1% 5.9% 15.1% 10.9% 6.7% 12.3% 3.1% 9.0% 8.4% 2.0% 15.4% 9.1% 11.1% 27.2% 28.8% 31.4% Serve LowIncome Individuals Serve LowIncome/Disadvantaged Individuals Nashville Memphis 39.2% 24.0% 2014 Tennessee Veteran affairsnprofit Compensation Survey % 32.5% FPO % 50 Senior services Supporting organization(s) 19.5% Youth services Other Advocacy 29.4% Animal services 1.7% Public Funding Arts & culture 12.6% Athletics & recreation 4.5% Children & youth Public Funding 34.5% Early childhood 9.8% Less than 3 4.2% Economic development 6.7% Education & training Fiscal Year 0% 27.7% % Higher education 6.2% 3.4% Adult education 5.9% January 31 Elementary & secondary education 6.4% 1 1.5% 10% 20.7% % Environment & conservation February 5.9% % Healthcare & medical March % 1.8% 20% 5.7% Housing 10.9% Human services & social welfare April % 39.2% Literacy May 6.7% % 40% 10.7% Mental health 12.3% 33.2% June % Research & development 3.1% 41 60% 9.1% 50 Senior services July 9.0% % 32.4% Supporting organization(s) August 8.4% % Veteran affairs 2.0% 61 80% 7.0% Youth services September % 2.6% Other October % 27.2% 8.9% vember % Annual Gross Revenue December % Annual Gross Revenues 9.1% January % 57.4% $100,00 $249,999 February % 11.1% March % $999,999 April % $4,9 million May % June % 7.0% July % 42.6% 4.7% August % September 30 $25 2.6% million 2.3% October % 0.2 vember % December % FPO 2.3% 28.8% % 3.1% 9.0% 8.4% 2.0% 33.2% 32.4% 31.4% 27.1% 23.3% 42.8% 15.4% 29.8% 27.2% 28.4% Annual Gross Revenues 7.0% 4.7% 9.1% 11.1% January 31 February 28 March 31 April 30 May 31 June 30 July 31 August 31 September 30 October 31 vember 30 December % 6.8% 6.8% Years in Operation Fiscal Year 1.5% 0.3% 1.8% 1.3% 1.8% 1.5% 1.0% 2.6% 0.5% 0.5% 33.2% 32.4% 14.0% 13.7% 20.3% 11.6% 12.7% 20.9% 14.4% 28.8% 12.3% 31.4% 38.7% January February March Apri May June July Augus Septembe Octobe vembe Decembe 48.5% Contractor Services Annual Gross Revenue Bookkeeping 58.9% Organization Budget Size Fundraising Grant $24.9 writing million Marketing 19.8% 21.8% 31.7% Increased Decreased Remained t

8 Tennessee nprofit Compensation Survey Staffing and Salaries Fulltime employees 55% have 10 or fewer fulltime employees 31% have between 10 and 50 fulltime employees 8% have between 50 and 100 fulltime employees Less than 6% have more than 100 fulltime employees Number of Employees (fulltime equivalents) Parttime employees 21% have no parttime employees 58% have between 1 and 10 parttime employees 21% have Number more than of Employees 10 parttime (fulltime employees equivalents) Hourly workers % 28% have no hourly 10 workers % say that no more than 20% of their workers are hourly More than 25% 500 say 0.8% that between 20% and 60% of their workers are hourly % Less than 21% say that more than 60% of their workers are hourly % Contractors We asked respondents if they use external contractors (nonemployees) to perform services. Hourly 18% do not use contractors to perform services 71% use between 1 and 10 contractors to perform services 11% use more than 10 contractors Hourly to perform services Contractors 11 20% perform a 6.3% variety of services, with the most common services including: Bookkeeping 41 60% (59%) Payroll 61 (42%) 80% % % % 11 20% 500 Marketing (32%) 40% Grant writing 41 60% (22%) Fundraising 61 80% (20%) % 11.1% 3.2% 0.8% 11.1% 19.6% 55.8% 21 40% 0% 11.9% 28.5% 6.3% 11.6% 8.9% 19.6% 0% 28.5% 8.9% 13.9% 11.9% 11.6% 18.9% 13.9% 18.9% 55.8% Respondents described using contractors for many other services, including information technology support, public relations, custodial/maintenance services, event management, graphic design, strategic planning, and numerous programrelated services (e.g., teachers, counselors, physicians, artists, etc.) Nearly 32% of organizations say they have increased the number of contractors used in the last five years, 8% have decreased the use of contractors, and 60% say contractor use has remained the same. Number of Employees (fulltime equivalents) Number of Fulltime Employees Organization Budget Size Number of Employees (fulltime equivalents) 0% 28.5% % 1 10% % 55.8% 11 20% % 19.6% 21 40% % Change Status 11.9% of Employment Within the last $1 million five years, 51 has 100your organization changed 41 60% 7.9% the status of any employees from full 13.9% $4.9 to parttime? million 61 80% % 11.6% % $10 81 million 8.9% Change Status of 500 $24.9 Employment million 0.8% 56.3% Percentage of Staff Paid on Hourly Basis % % % % % % Hourly Annual Gross % Revenue 1 10% 11 20% 21 40% 41 60% 61 80% % 19.6% 51 Number 100 of 7.9% Parttime Employees 3.2% 1.6% 0.8% Number of Parttime Employees 6 10 Number of Parttime Employees % Hourly Annual Gross Revenue 0% 28.5% 6.3% 11.9% 8.9% 21.0% 11.6% 13.9% 56.3% 43.7% 43.7% 18.9% 45.7% Organization Budget Size $100,0 $5 mil $9.9 m Organization Budget Size

9 % 10.7% 41 60% 9.1% 61 80% 7.0% % 1 10% 20.7% % 11 20% 5.7% % 21 40% 10.7% 2014 Tennessee nprofit Compensation Survey 7 More than % 9.1% 18.0% salary surveys organizations izations' 990's input obtained Staffing and Salaries Salary Determination Public Funding Volunteers Nearly 14% of organizations 64.6% do not use volunteers Automatic Annual 11.4% 56% say that volunteers provide between 1 and 20% of their 0% 46.2% 37.9% labor Cost of Living 1 10% 20.7% 19% 15.3% say that volunteers provide between 20% and 60% of their 11 20% labor 5.7% Merit Based 20.7% 21 40% 10.7% 12% say that volunteers provide more than 60% of their labor N/A 41 60% 9.1% 44% say they have increased the use of volunteers in the last year, and 6% say they 61 80% have decreased 7.0% the use of volunteers % Basis for Salary Increases Number of Independent Contractors Number of Independent Number of Contractors Board Members % More than 15 ne 17.5% 35% of small 81 organizations 8.9% say that more than 40% of their 18.0% labor is provided by volunteers, compared to 5% of large and ses (last 5 years) 5% mediumsized organizations Anticipated Staff Increases $5 for million 2014 $10 Contractor Services Change Number in $24.9 Contracted millionof Independent $100 Services million Contractors Changes in staff size 86.1% Organization Budget Size 33% said their organization s number of employees would Increase 33.5% raises will be issued in % increase this year Contractor neservices17.5% Bookkeeping 58.9% 1 2% 31.9% 24.6% 3% said their number of employees would decrease this year Contractor Services 1 5 Fundraising Decrease 8.3% 19.8% 3 4% 40.8% More than 63% said their number of employees would stay the 5 Increased 6% 6.8% Bookkeeping same 58.9% Grant this writing year 21.8% % Remain the same 58.2% 7 Decreased 10% 1.4% 63% say their staff size has increased over the last five years Fundraising 19.8% Marketing 31.7% Remained 10% 0.8% the same 3.1% 56% say that at least one parttime employee has been increased Grant writing 21.8% Payroll 41.6% 6 to fulltime status in the last five years 8.1% More than % Marketing Volunteer 31.7% Labor Hours Anticipated Other changes in staff size correspond 85.1% slightly with organizational size: 38% of large organizations, 37% of mediumsized Payroll 41.6% organizations, and 31% of small organizations said they Other anticipated increasing their number of employees this year. 0% 13.4% 85.1% ffered Contractor Services Change in Staff Staff Eligible for Bonuses 1 10% Change in Contracted Services 2013 Staff Size Change Expectations 18.1% 39.3% 61 80% % % % % 25 More than % 61.1% 14.8% Change in Contracted 11 Services 20% within the last five years 17.2% 20.6% Organization Budget Size 25.0% 19.3% Annual Gross Revenue 61.1% 38.8% $100,0 $5 mil $9.9 m Increased Decreased Remained Bookkeeping 58.9% Increase 33.4% CEO/Executive Director Only Fundraising 19.8% Grant Decrease writing3.4% 21.8% Senior Management 68.9% Marketing 31.7% Remain the Same 63.2% All Employees Payroll 41.6% Other Volunteer Labor Hours Labor Hours Provided by Volunteers 85.1% 21 40% 29.6% 31.9% 41 60% Increased 61 80% 18.3% Decreased 81 Remained the same 60.9% 8.1% Change in Volunteer Involvement 11.0% 7.9% 6.2% 5.4% 6 Change in Volunteers 0% 13.4% 1 10% 11 20% 21 40% 41 60% 17.2% 11.0% 7.9% 38.8% 43.7% Increased Decreased Remained the same 50.1% 61 80% % 5.4% 6.2%

10 Tennessee nprofit Compensation Survey Executive Characteristics Gender More than 63% of organizations have a female executive director. Smaller organizations are the most likely to have a female executive director (73%), compared to mediumsized organizations (57%) and large organizations (25%). Race/ethnicity 87% of organizations have a Caucasian executive director 12% are AfricanAmerican Less than 1% are Hispanic, Asian, or of another race/ethnicity 12% of small organizations, 14% of mediumsized organizations, and 10% of large organizations have a noncaucasian executive director. Public Funding Education level More than 96% of executive directors have at least a bachelor s degree More than 61% have at least a graduate degree 1 10% More than 18% have a postgraduate degree 11 20% 21 40% 41 60% 61 80% 81 0% 37.9% 5.7% 10.7% 9.1% 7.0% 8.9% 20.7% Boards Board of Directors 19% have more than 25 Board members 34% have between 16 and 25 Board members More than 47% have 15 or fewer Board members Chief Executive Officer/Executive Director Number of Board Members Number of Board Members % $150K % % More than % 19.3% 18.0% CEO/Executive Director Chief Executive Salary $30K $49K $50K $75K $76K $100K $101K $150K Gender of Executive Director/CEO Chief Information Officer Male 36.6% Bookkeeping Female Fundraising Grant writing Marketing $150K Organization Budget Size $150K $ million $25 million number of respondents Payroll Other Contractor Services 19.8% 21.8% 58.9% Annual Gross Revenue 63.4% 31.7% number 41.6% of respondents 85.1% $30K $49K $50K $75K $76K $100K $101K $150K $150K Education Number of Independent Contractors Chief Financial Officer Chief Human Resources Officer Chief Executive Salary and Education Level High school 3.4% graduate degree 1 5 Graduate degree 6 10 Post graduate More 15than % Salary Range by Grad Degree $30K $49K$101K $150K 0 $10 million 31.9% $50K $75K $150K Annual Gross Revenue $76K $100K Increased $101K $150K Decreased $1 million $150K $10 million $50K $75K $150K Remained the same Organization Budget Size $76K 15 $100K % ne 17.5% 3.1% 10.3% 35.4% $30K $49K $50K $75K 42.7% $76K $100K 18.5% $101K $150K $150K graduate Graduate Post Salary Ranges High School Degree Degree Graduate Chief Development Officer Chief Medical Officer Change in Contracted Services 61.1% $30K $49K $50K $75K $76K $100K

11 s o Salaries and Benefits Determining salaries How do nonprofit organizations determine employee salaries? 65% review national or local salary Salary surveys Determination 46% talk to other organizations about their salary levels 15% review other organizations IRS 990 forms Nearly 21% say Salary they obtain Determination no outside input to determine salaries Respondents cited many other methods for determining salaries, including using consultants, Review of other soliciting organizations' 990's Board input, 15.3% and simply paying as much as is determined that annual budget and 64.6% income allow. Salary Determination Basis for salary increases 11% of organizations give automatic annual salary increases 39% give costofliving salary increases 64% Talk outside to other give input organizations meritbased obtained salary 20.7% 46.2% increases Staff Salary Decreases (last 5 years) All sizes of organizations were equally likely to give automatic 15.3% salary Organization increases Annual Gross Budget Size Review national or local salary surveys Talk to other organizations outside input obtained Revenue 86.1% 52% outside of large input obtained organizations, 20.7% 53% of mediumsized organizations, and 44% of small organizations give meritbased raises Staff Salary Decreases (last 5 years) Decrease 8.3% Average salary increases $250, % We asked how much, on average, organizations anticipate increasing salaries this year: Remain the same Review national or local salary surveys Talk to other organizations Review of national other organizations' local salary 990's surveys Review of other organizations' 990's 86.1% 15.3% 46.2% Staff Salary Decreases (last 5 years) Increase 33.5% Nearly 26% said no raises would $5 be million issued in their organization this year 13.9% 86.1% Decrease 8.3% 25% said average raises of 12% would be given this year 41% said $100 raises million would average 34% this year 64% say that all staff are eligible for bonuses 20.7% 46.2% 19% say that only senior management 68.9% Bonus Program Offered receives Change bonuses in Staff 64.6% 31% say that only executive directors/ceos $1 million receive bonuses One respondent said all staff other than the executive Organization Budget director Size are Increase 33.4% Bonus eligible Program for 31.1% raises. Offered Other respondents said bonuses are Change provided in Staff to staff in certain programs or departments or staff involved directly in income generation. Several said bonuses are based on longevity. Some noted Decrease 3.4% that bonuses take the form of a holiday gift when budget allows Tennessee nprofit Compensation Survey 9 Increase 33.5% Salary Determination Staff Salary Basis Decreases for Salary (last Increases 5 years) Anticipated Staff 13.9% Increases for % 6.8% 2014 Bonus Salary Program Change Offered Expectations Review national or local salary surveys Talk to other organizations Review of other organizations' 990's outside input obtained 31.1% Automatic Annual Cost of Living Merit Based 86.1% 11.4% Salary Determination 7 110% 2% 68.9% 1.4% 15.3% 46.2% 64.6% 20.7% Review national or local salary surveys Basis for Salary Increases Remain the same Increase 33.5% Staff Salary Decreases (last 5 years) 18.1% 39.3% 86.1% Anticipated Staff Increases for % Increase 25.6% Decrease Change in Staff Remain the same 58.2% 24.6% 9% said $100 raises millionwould average at least 5% this year Bonus Program Offered Decrease 8.3% Remain the Same the last five years, 86% of respondents say they have increased salaries. 310% 4% 0.8% 40.8% 13.9% Bonus Program Offered Change in Staff Staff Eligible for Bonuses 5 6% Bonus 6.8% Program Offered Remain the same 58.2% Salary Bonuses Bonus Program Offered7 10% 1.4% 31.1% More than 31% of organizations give salary bonuses to staff. Of Increase those 33.4% CEO/Executive Director Only 29.6% 31.1% 10% 0.8% that do give bonuses: 31.1% 68.9% 64.6% $25 Increase million 33.5% Increase Remain $250,000 the Same Decrease Annual Gross Revenue Decrease 3.4% Remain the Same 33.4% 3.4% Salary Increases Automatic Annual Cost of Living N/A 58.2% 63.2% Staff Eligible for Bonuses N/A raises will be issued in 2014 raises will be issued 5 in 6% % Review Talk of to other other organizations' 990's 39.3% Review of other organizations' outside input 990's obtained 64.1% raises will be issued in % 13.9% 1 2% 1 2% 3 4% CEO/Executive Director Only Senior Management All Employees Senior Management 3 4% 7 10% 10% Senior Management 64.1% outside input obtained 18.1% Cost of Living 39.3% Decrease 8.3% 13.9% Staff Salary Decreases (last 5 years) Within Automatic Merit the Based Annual last five years, 11.4% has your organization 64.1% increased salaries? 63.2% Basis for Salary Increases Merit Based N/A $100 million Review national or Talk local to salary other surveys organizations 6.8% 1.4% 0.8% 25.6% Staff Eligible for Bonuses All Employees 18.3% 31.1% 29.6% Staff Eligible for Bonuses 86.1% Anticipated Staff Increases for 2014 CEO/Executive Director Only 18.3% 29.6% 18.3% Salary Determination 60.9% Salary Determination 25.6% 24.6% 40.8% 3.4% 68.9% 15.3% 68.9% 20.7% 60.9% 15.3% 20.7% 33.4% 46.2% 58.2% Automa Cos M 46.2% 64.6% Increase Decrease 40.8% Decrease 8. Remain the same Remain the same Increase 63.2% In Increase De Decrease Remain th Remain the Same 68.9% Organization Budget Remain Size the Same 63.2% Annual All Employees Gross Revenue 60.9%

12 Tennessee nprofit Compensation Survey Salaries and Benefits Change in benefits In the last five years, 18% of respondents say they have decreased or eliminated employee benefits. Larger organizations were slightly more likely to have decreased benefits (22%) than mediumsized (21%) or small (15% organizations). Benefits for parttime employees 21% of respondents say they offer benefits to parttime employees. Many commented that these are prorated; that they offer benefits to employees who work more than a certain percentage of time, such as those above 50% FTE. Some say parttime employees are eligible for some but not other benefits, e.g. retirement but not health care benefits. Employerprovided health insurance 64% of respondents offer employerprovided health insurance coverage to employees. Large and mediumsized organizations were much more likely to offer employerprovided health insurance coverage, at and 92% respectively, compared to 39% of small organizations. 18% offer health insurance coverage to all employees 30% offer health insurance coverage to all fulltime, salaried employees 50% offer health insurance to all fulltime employees (salaried and hourly) 2% offer health insurance to all fulltime and parttime salaried employees Some respondents said they provide health insurance coverage to other subsets of employees such as managerial staff, and several said they provide coverage to all staff who work more than 30 hours a week. Premium portion paid by employers Employers may pay all or just a portion of their health insurance coverage plan premiums. Of survey participants who provide health insurance to employees: 36% pay of premiums, 29% of mediumsized organizations pay of premiums, compared to 14% of small organizations and 11% of large organizations 37% pay between 76% and 99% of premiums 21% pay between 50% and 75% of premiums More than 6% pay less than 50% of premiums Family medical coverage 80% of respondents who provide health insurance coverage to employees also offer coverage to employees family members: 49% do not cover any of the premium cost for employees family members 8% pay of premiums for employees family members 9% pay between 75% and 99% of premiums for family members 23% pay between 50% and 74% of premiums for family members 11% pay between 1% and 50% of premiums for family members 50% of large organizations, 23% of mediumsized organizations, and 8% of small organizations pay at least 50% of premiums for family members. Defined contribution health plans 14% of respondents provide employees a defined contribution health plan instead of employerpaid health insurance. these plans, the employer gives employees a fixed contribution to purchase health insurance coverage independently. Healthcare.gov Fewer than 8% of respondents said they dropped their health insurance coverage to send employees to the Federal health insurance exchange at healthcare.gov 26% said that all employees obtained insurance through the Federal exchange 10% said that between 50% and 99% obtained insurance through the exchange 32% said that between 31% and 50% obtained insurance through the exchange 32% said that 30% or fewer obtained insurance through the exchange Health insurance cooperatives 3% said they obtained their organization s health insurance coverage from a health insurance cooperative established as part of the Affordable Care Act Of this small group, 62% said the costs were not lower than other plans they reviewed 83% said that costs were no more than 25% higher than other plans they reviewed, and most of these said that costs were less than 10% higher than other plans Cost of health insurance 65% said that their health insurance plan premiums increased in the last year. Of these: 30% say the increase was between 1% and 5% 29% said the increase was between 6% and 10% 21% said the increase was between 11% and 15% 15% said the increase was between 16% and 25% 5% said the increase was more than 25% 59% said that despite the increased cost of health insurance premiums, their employees are not paying more of their share of the cost than before premiums were increased. Of the 41% that are paying more: 45% said that employees are paying less than 5% more than before 40% said their employees are paying 6 to 15% more than before 7% said their employees are paying 16% to 30% more than before Less than 8% said their employees are paying 30% more than before

13 Health Insurance Offered Health Insurance Offered Salaries and Benefits Health Insurance Offered 64.1% 64.1% Health Insurance Coverage for Employees 64.1% 35.9% 35.9% 35.9% 1 49% 1 49% Insurance Paid Company Insurance Paid Company 0% 0% 2014 Tennessee 76 99% nprofit Compensation 35.5% 76 Survey 99% 8.9% 11 Insurance Paid Company Health Insurance Offered Insurance Eligibility Empoyees 5.9% Eligible for Health Insurance 5.9% % 75% 0% All 24.1% employees 24.1% 17.6% 50 75% 50 75% 0% 23.1% 0% 23.1% 49.7% 64.1% 64.3% 76 99% 1 49% Fulltime, 5.9% salaried employees 35.5% 35.5% 29.2% 76 99% 76 99% 8.9% 1 49% 1 49% 8.9% 10.7% 5.9% Fulltime salaried and hourly employees 50 75% 34.5% 24.1% 34.5% Fulltime and parttime salaried employees 1.9% 76 99% Other subset of employees 3.7% 35.9% If, What % Insurance Paid Company Insurance FamilyEligibility Premium Increase If, What % Family % Paid by Organization Insurance Eligibility Premium Increase Premium This YearIncrease Premium Increase by % 1 5% 30.3% 6 10% 29.1% 0% All employees 49.7% 17.6% Insurance 11 Eligibility 15% 1 5% 20.3% If, Premium What % Increase 30.3% 16 20% 6 10% 64.3% 8.7% 29.1% If, Fulltime, salaried All employees employees Insurance 17.6% If How, If, Much How How Much Much Eligibility Premium Increase 21 25% 11 15% 6.1% 20.3% 1 49% 10.7% 29.2% Employee Employee Employee Share Share Cost Share Cost Cost 64.3% 26 30% % 20% Drop Coverage Drop Drop 8.7% Coverage Coverage All employees 17.6% 31 35% Fulltime Fulltime, 50 salaried 75% salaried and hourly employees 23.1% 29.2% 21 25% 1 5% 6.1% 47.6% 30.3% 1 5% 1 5% 1 5% 45.0% 45.0% 45.0% 36 40% 0.7% 26 30% 6 10% 3.4% Health 29.1% Insurance Offered 64.3% Prio 41 45% All employees 17.6% 6 10% 5% Fulltime and 76 parttime 99% salaried employees 1.9% Fulltime, salaried 35.7% employees 29.2% 31 35% 11 Fulltime salaried and hourly employees 8.9% 6 10% 6 10% Tax Credit 26.1% Tax Credit Insurance If, How Much 26.1% 26.1% 15% 20.3% 47.6% 11 15% If, How Much 46 50% 0.7% 11 15% 11 15% 13.8% If, 13.8% How 13.8% Much 64.3% 36 40% 16 20% 0.7% 8.7% 50% 0.7% Share Cost Other Fulltime, subset of salaried employees employees 3.7% 29.2% Fulltime salaried and hourly employees 47.6% 21 Drop 25% % Employee Share Cost 16 20% 7.6% 41 45% 6.1% Fulltime and parttime salaried employees Employee Share 40.2% 40.2% Cost 40.2% % 20% 16 20% 1.2% 1.2% If, How Much 35.7% 7.8% Drop 7.8% Drop Coverage 7.8% Coverage 1.9% 21 25% 21 25% % 6.6% 25% 2.5% 2.5% 46 50% 26 30% 0.7% 3.4% If, How Much Fulltime and parttime salaried employees 1.9% 31 35% 35.7% Fulltime salaried Employee and hourly employees Share Cost % 5% 1 5% 45.0% 45.0% 20.2% % 130% % 5% 30% 3.8% 3.8% 45.0% 50% Drop 0.7% Coverage Other subset of employees Employee 3.7% Share Cost % 35% 6 10% If, How 26.1% 26.1% Much 36 40% Drop 0.7% Coverage % 31 10% 35% 26.1% Employees 41 45% Fulltime and parttime Share salaried Cost 1 15% 5% 13.8% Other subset of employees 45.0% 3.7% employees % Shared 11 40% 15% Employee Share 1.9% Cost by Employee 13.8% % Dropped EmployerProvided 6 10% 20% 1.2% Drop CoverageHealth Insurance 40.2% 40.2% 16 20% 1 40% 36 15% 40% 5% 13.8% 43.9% 41 45% 1.2% 26.1% 467.8% 50% 0.7% 40.2% % 25% 2.5% If, What % 21 25% 6 45% 41 10% 20% 45% 45.0% 59.8% 1.2% 13.8% 50% 0.7% Other subset of employees 3.7% 40.2% % 30% 1 1.2% 5% 2.5% 26.1% 7.8% 39.2% 59.8% 59.8% 46 50% 21 25% 3.8% 45.0% 92.2% 92.2% 92.2% 46 50% 46 50% 2.5% 3.8% 79.8% Don't 26 50% know 30% 11 15% rease 7.8% % 35% 6 10% 3.8% 13.8% 26 50% 30% 3.8% 50% 3.8% 3.8% 49.5% 40.2% 26.1% % % 40% 11 35% 16 20% 15% 1.2% 7.8% 31 35% 13.8% 1 5% 30.3% % % 45% 16 40% 21 25% 20% 2.5% 40.2% 36 40% 1.2% 7.8% 6 10% 59.8% 29.1% 41 45% 26 30% 3.8% 59.8% 92.2% 11 15% 20.3% % 50% % 45% 3.8% 2.5% 59.8% 46 50% 31 35% 3.8% 92.2% 92.2% 64.3% 16 20% 8.7% 41 50% 26 30% 45% 3.8% 3.8% 50% % 50% 3.8% 3.8% 21 25% Used Marketplace 6.1% 59.8% 31 35% 50% 3.8% Used Used Marketplace Marketplace 41 45% Marketplace 92.2% 46 50% 3.8% Marketplace Marketplace Subsidy Subsidy Subsidy Insurance Insurance Insurance Cooperative Cooperative Cooperative 59.8% 26 30% 3.4% 36 40% Health Insurance Offered Prior 92.2% 46 50% 3.8% 31 35% Tax Credit Tax 50% Credit Insurance 3.8% 41 45% 50% % 3.8% 40% 92.2% 0.7% 46 50% 3.8% 1 10% % 45% 1 10% Organization 25.8% 25.8% 25.8% 1 10% Annual Gross 50% 1 10% 1 10% 23.2% 3.8% 23.2% 23.2% 35.7% 11 20% 46 50% 0.7% Budget Size 11 Revenue 20% 11 20% 11 Used 20% Used % 20% 11 20% Marketplace Marketplace 1.8% 1.8% Subsidy Healt 6.6% 50% 0.7% Used Marketplace Marketplace Subsidy Tax Credit Subsidy Health Insurance 3.2% Insurance Insurance Tax Offered Credit 60.8% Cooperative Insurance Cooperative Prior 21 30% 6.5% 21 30% 3.2% 3.2% 21 Used Marketplace Tax 30% 21 30% Credit 6.5% 6.5% for Insurance 20.2% Marketplace Tax 21 30% 21 30% Credit Insurance 31 40% 31 40% 19.4% 1.8% Government Subsidy Health Insurance Cooperative 31 40% 31 40% 31 40% 31 40% Used Marketplace 19.4% 19.4% 1.8% 1.8% 41 50% Marketplace Subsidy Insurance Cooperative 41 50% Used 12.8% Marketplace 41 50% 50% Marketplace Subsidy Insurance Cooperative 1 10% 41 50% 41 50% 12.8% 12.8% 1 10% 43.9% 25.8% 25.8% 1 10% 1 10% 23.2% 1 10% 51 60% 23.2% 51 60% 25.8% % 60% 51 10% 60% 1.8% 1.8% Health Insurance Offered Prior 6.6% % 51 20% 60% 51 60% 23.2% 11 20% 1.8% Tax Used Credit Marketplace % Tax 20% Credit 1.8% Marketplace Insurance Subsidy Insurance Cooperative 11 20% % % 20% 70% 1.8% 3.5% 3.5% 39.2% 20.2% % 30% 6.5% % 1 10% 3.2% 61 70% 6.6% 61 70% 61 70% 6.5% 6.5% $250, % 30% 23.2% 3.2% 60.8% 21 30% 6.5% 71 $250, % 30% 3.2% % 30% 6.5% % 79.8% Don't know % 40% 49.5% 19.4% % 40% 20.2% 1.8% 1.8% 31 40% 31 40% 19.4% 1 80% 71 10% 30% 80% 1.8% 23.2% 96.8% 96.8% 96.8% 71 80% 71 80% % 80% 3.2% 3.2% 81 90% % 40% 31 90% 81 40% 90% 19.4% 1.8% 81 90% 43.9% 3.2% % 50% 81 90% 81 90% 6.5% 12.8% % 50% 50% 11 20% 41 50% $1 million 1 10% 12.8% 25.8% 1.8% % 60% 6.6% % 60% % 10% 50% 1.8% 1.8% 19.4% 1.8% 1.8% 23.2% 3.2% % 50% 6.5% 12.8% $ million 60% 21 30% 25.8% 1.8% % 60.8% 11 60% 25.8% 25.8% Don t know Don t 20% % 70% 1151 Don t 20% know 60% know 66.1% 3.5% 1.8% 1.8% 66.1% 66.1% % 60% 19.4% $5 61 million 20.2% % 70% 6.5% 12.8% 21 30% 79.8% 6.5% % 80% 21 70% 31 40% 30% 3.5% 1.8% 3.2% 61 70% 6.5% 61 70% 3.5% % 70% 6.5% $ % 71 million 1.8% Don't know 49.5% 39.2% 96.8% % 80% 31 80% 40% 3.2% 3.2% 19.4% % 90% 31 80% 41 50% 40% 71 80% 96.8% 1.8% % 80% % 79.8% % 90% Don't know % 50% 6.5% 49.5% 12.8% 43.9% 71 80% 41 90% 51 60% 3.2% 50% 1.8% 96.8% $10 million 1.8% 1.8% 61 70% 6.5% % 90% 3.5% 81 90% 96.8% 71 80% 51 60% 3.2% 25.8% Don t 81 know 51 60% 1.8% 1.8% 25.8% Don t 90% know 71 80% 66.1% 66.1% 96.8% 71 80% 3.2% 25.8% $25 million 39.2% 81 Health 90% 61 70% Offered 6.5% Prior 61 Don t 81 70% know 90% 3.5% 66.1% Insurance 71 80% 1.8% 81 90% Insurance Insurance Cooperative Cooperative Cooperative Lower Lower Lower If, If How, If, Much 1.8% How How Much Lower Much 79.8% Lower Lower 2016 ACA Penalty ACA ACA Penalty Penalty 96.8% 25.8% Don t know 66.1% Don't know71 80% Insurance Cooperative 3.2% Lower than Other 49.5% Plans25.8% Lower By 81 Don t % 90% know 66.1% 2016 ACA Penalty 81 90% 1.8% 25.8% 1 10% Don t know 66.1% 1 10% 1 10% 66.6% 66.6% 66.6% 60.8% 11 20% 0.4% 16.7% Insurance Insurance Cooperative Cooperative 38.5% Lower Lower 11 Lower If, 20% 11 20% 0.4% 0.4% If, How If, How Much 16.7% 16.7% How Much Lower Much Lower Lower ACA 2016 ACA Penalty 38.5% 38.5% ACA Penalty 21 30% 16.7% Penalty 21 30% 21 30% 16.7% 16.7% 31 40% Insurance Cooperative Lower 31 If, 40% 31 40% How Much Lower 2016 ACA Penalty Insurance Cooperative Lower 41 50% If, How Much Lower 2016 ACA Penalty 97.2% 1 10% 41 50% 41 50% 1 10% 66.6% 97.2% 97.2% 66.6% 39.2% 51 60% 1 10% 66.6% 11 20% 0.4% Insurance Cooperative Lower $250, % 60% 51 60% If $1, 16.7% million 16.7% How Much $5 million Lower $25 million 0.4% 2016 ACA Penalty 38.5% 38.5% 11 20% 0.4% 16.7% 38.5% 61 70% 61.5% % 30% 61 70% 61 70% 61.5% 61.5% 30% 16.7% % 66.6% 71 80% 1 10% 30% 16.7% 66.6% % 40% 71 80% 71 80% 0.4% 31 40% 16.7% Annual Gross Revenue Don't know Don't Don't know 2.4% know 38.5% 81 90% % 40% 2.4% 2.4% 0.4% 16.7% 38.5% % 50% 81 50% 1 90% 81 90% 10% 16.7% 66.6% 97.2% 97.2% % 50% 16.7% 97.2% % 60% 11 60% 20% 0.4% 16.7% 38.5% % 60% % 70% 97.2% 61.5% 21 70% 30% 16.7% 61.5% $250, % 70% $1 million $25 million 61.5% 97.2% % 80% 31 80% 40% % 80% Don't Don't know$100 know2.4% million 2.4% % 90% 41 90% Don't know 2.4% 50% 61.5% 97.2% % 90% Organization Budget Size 61.5% 71 80% 51 60% 71 80% Don't know 2.4% 81 90% Don't know 2.4% 35.9% 35.5% 34.5% 50 75% 24.1% Insurance Paid Company Family Insurance Paid Company Family 0% 49.7% 0% 49.7% 1 49% 47.6% Insurance Insurance Paid Company Paid Company Family Premium Increase Individual 10.7% % Paid by Organization 1 49% 10.7% 7.6% 50 75% 50 75% 7.6% 76 99% 76 99% 8.9% 7.6% 34.5% 23.1% 35.7% 24.1% 50 75% 23.1% 1 5% 6 10% 11 15% 16 20% 21 25% 26 30% 31 35% 36 40% 41 45% 35.5% 46 50% 50% 34.5% 7.6% If, Wha Ins 0% 8.7% 6.1% 1 49% 3.4% 0.7% 0.7% 0.7% 50 75% 76 99%

14 Tennessee nprofit Compensation Survey Salaries and Benefits Dental Insurance Offered Dental Insurance Coverage for Employees Dental Insurance Offered 59.1% Health insurance penalties As part of the health care reform law, beginning in 2015, employers with 100 or more fulltime employees who do not provide affordable health care coverage may be assessed a penalty. In 2016, penalties will be assessed for employers with 50 or more fulltime employees who do not provide affordable health care coverage. We asked respondents if they expect their organization to have to pay a penalty beginning in 2015 or Only one respondent indicated they expected to pay a penalty, though another 7% were not sure whether they would or not. Employerprovided dental insurance Nearly 60% of respondents say their organizations offer employerprovided dental insurance coverage to employees. Of those that do: Dental Insurance Offered 36% pay of dental premiums 26% pay between 50% and of dental premiums 8% pay up to 50% of dental premiums 30% do not cover any portion of dental premiums 59.1% 59.1% 1 49% 8.2% 0% 30.3% Vision Insurance Organization Budget Size 40.9% Individual Insurance Paid 59.1% 1 49% 50 75% 40.9% 76 99% 13.3% Individual Insurance Paid Vision Insurance Family Insurance Paid 36.4% Vision Insurance Coverage for Employees Individual Insurance Paid Family Insurance Paid 50 75% 8.2% 76 99% Annual 11.8% Gross Revenue Vision Insurance 0% 30.3% 11.8% 13.3% 48% of mediumsized organizations, 39% of large organizations, and 18% of small organizations pay at least 50% of employees dental premiums. Several respondents say they offer a stipend for dental insurance to employees. Dental Insurance Offered Individual Insurance Family dental insurance Of those that offer dental insurance coverage to employees, 78% also 0% offer this benefit to employees family members: 59.1% 40.9% 76 99% 10% pay Individual of premiums Insurance for Paid family members 36.4% Family Insurance Paid 1 49% 50 75% 0% 64.5% 52.8% 1 49% 7.9% 0% 64.5% 1 49% 8.2% 11.8% 50 75% 7.9% 76 99% 13.8% 3.9% 13.8% 9.9% 47.2% Individual Insurance Paid 40.9% 76 99% 13.3% 76 99% 3.9% Dental Insurance Individual % Paid by Organization Vision Insurance Individual % Paid by Organization 36.4% 9.9% 0% 30.3% 0% 0% 64.5% 34.9% 52.8% 1 49% 8.2% 1 49% 1 49% 7.9% 8.9% 50 75% 11.8% 50 75% 13.8% Vision Insurance Individual Insurance Paid 50 75% 11.8% Familiy Insurance Paid 76 99% 47.2% 13.3% 76 99% 3.9% 76 99% 13.6% 36.4% 0% 9.9% 34.9% 0% 30.8% 65.5% 52.8% Family Insurance Paid Individual $100 1 Insurance million 49% Paid 8.9% Familiy 1 49% Insurance 8.6% Paid Dental Insurance Family % $100 Paid million by Organization Vision Insurance Family % Paid by Organization $ million 75% 11.8% 50 75% 12.2% 50 75% 1 49% 64% do not pay any portion of dental insurance premiums for 50 75% family members 8% pay up to 50% of premiums for family members 18% pay 0% more than 50% but less 30.3% than of premiums 0% for family members 1 49% 50 75% 76 99% 8.2% 11.8% 13.3% Individual Insurance 76 99% 3.9% 9.9% 0% 0% 1 49% 50 75% 76 99% 1 49% 50 75% Family Insur 8.9% 7.9% 11.8% 13.8% 13.6% Familiy Insurance 8.6% 3.6% 12.2% 10.1% 0% 47.2% 64.5% 0% 76 99% 13.6% 34.9% 52.8% 1 49% 7.9% 1 49% 8.9% 0% 76 99% 3.6% 65.5% 30.8% 1 49% 8.6% 10.1% % 2.8% 50 75% 76 99% 1 49% 50 75% 13.8% Individual Insurance Paid 3.9% 47.2% 9.9% 0% 34.9% 8.9% 11.8% 50 75% 76 99% 11.8% 13.6% 1 49% 50 75% Familiy Insurance Paid 30.8% 0% 65.5% $ % million Annual Gross Revenue Organization Budget Size 12.2% 50 75% 12.2% 76 99% 3.6% 10.1%

15 Tennessee nprofit Compensation Survey 13 Salaries and Benefits Employerprovided vision insurance 53% of survey participants say their organizations offer employerprovided vision insurance coverage to employees. 91% of large organizations, 80% of mediumsized organizations, and 25% of small organizations offer employerprovided vision insurance coverage. Of those that do offer vision insurance: 35% do not pay any portion of employee vision insurance premiums 31% pay of vision insurance premiums 25% pay between 50% and of premiums Less than 9% pay up to 50% of premiums More than 82% of those that offer employerprovided vision insurance also offer vision insurance coverage to employees family members: 65% do not pay any portion of vision insurance premiums for employees family members 11% pay of vision insurance premiums for family members 16% pay between 50% and of vision insurance premiums for family members More than 8% pay up to 50% of vision insurance premiums for Cafeteria Plan 19.6% family members Taxadvantage Programs Offered to Employees Flexible Spending Account (FSA) Health Reimbursement Account (HRA) Health Savings Account (HSA) Medical Savings Account (MSA) Health Reimbursement Account (HRA) Cafeteria PlanMedical Savings 19.6% Account (MSA) N/A Flexible Spending Account (FSA) Health Savings Account (HSA) 1.3% 10.8% 19.0% 15.7% N/A 1.3% 10.8% 57.8% 19.0% 15.7% Defined Contribution Tax advantage programs Tax advantage programs provide benefits to employees in the form of taxfree, taxreduced, or taxdeferred accounts. We asked respondents which tax advantage programs they offered: Profit Sharing Simple IRA 19% offer flexible spending accounts (FSAs) 16% offer health savings accounts (HSAs) 11% offer health reimbursement accounts (HRAs) Just over 1% offer medical savings accounts (MSAs) Retirement plans We asked participants which retirement plans or benefits they offer to employees: Cafeteria Plan 19.6% 24% offer 401(k) plans to employees Flexible Spending Account (FSA) 19.0% 22% offer 403(b) plans to employees Health Reimbursement Account (HRA) 10.8% 9% offer simple IRAs to employees Health Savings Account (HSA) 15.7% 5% offer defined benefit/pension plans Medical Savings Account (MSA) 1.3% 2% offer defined contribution N/A plans Defined Contribution 2.4% benefits after one year 3 months of employment 32.5% Profit Sharing 0.9% 401(k) 23.5% Simple IRA 6 months 9.2% 13.0% 403(b) retirement benefits 22.3% 57.8% N/A 9 months 42.8% Defined Benefit/Pension 4.9% N/A 401(k) 23.5% 403(b) 2.4% 1 year 46.1% and one year in order to qualify for retirement benefits 0.9% 2 years 8.4% 9.2% 42.8% 22.3% 57.8% 3 respondents said they offer employees a retirement benefit in the form of profit sharing When do employees qualify for retirement benefits? Defined Benefit/Pension 4.9% 46% of respondents say that employees qualify for retirement 8% say employees must work two years before qualifying for 14% say they require employees to work between six months 32% said retirement benefits are available to employees after three months of employment 401(k) 403(b) Defined Benefit/Pension Defined Contribution Profit Sharing Simple IRA N/A 1 year 2 years 3 years 4 years 5 years 6 years 7 years 8 years 9 years 10 years % Retirement Plans Offered to Employees 57.8% Medical Savings Defined Account Benefit/Pension (MSA) 1.3% 4.9% 1 year 3 months 32.5% Defined Contribution N/A 2.4% 57.8% 2 years Profit 6 Sharing months 0.9% 13.0% 8.4% Simple 9 months IRA N/A 1 year 9.2% Required Time to Qualify 2 years for Retirement 8.4% Benefits 46.1% Cafeteria Plan 19.6% Flexible Spending Account (FSA) 19.0% 6 months Health Reimbursement Account (HRA) 401(k) 10.8% 23.5% Health Savings Account (HSA) 403(b) 15.7% 9 months 22.3% 3 months 32.5% 6 months 3 months 32.5% 20.7% 13.0% 13.0% 42.8% 46.1% 9 months 1 year 46.5% 2 years 7.8% 1 year 3 years 10.9% 46.1% 4 years 2.3% 2 years 5 years 6 years 20.7% 8.4% 5.4% N/A 20.9% 17.8% 7 years 3.9% 8 years 61.5% 401(k) 23.5% 403(b) Parttime Employee Benefits 22.3% Defined Benefit/Pension 4.9% 4 years 2.3% 5 years 20.9% Defined Contribution 2.4% 6 years 20.7% 5.4% Profit Sharing 0.9% 7 years 3.9% 1 year 46.5% Simple 46.1% IRA 9.2% 8 years 2 years 7.8% 9 years N/A 3 years 10.9% 42.8% 10 years 2.3% 4 years 2.3% 61.5% 1 year 46.5% 2 years 3 years 7.8% 10.9% 5 years 20.9% N/A 17.8% 6 years 5.4% 7 years 3.9% 8 years 9 years 10 Fringe years 2.3% Benefits Eliminated or Decreased (within the last five years) 1 year 46.5% 2 years 7.8% 18.2% 3 years 10.9% 4 years 2.3% 5 years 20.9% 6 years 5.4% 7 years 3.9% 8 years 9 years 18.2% 10 years 2.3% 81.8% 61.5%