Nonprofit Workers Paid More Despite Recession

A survey conducted by Robert Morris University and the United Way of Allegheny County reveals employees of local nonprofits recently received the smallest two-year increase in salaries since the survey began in 2002.

However, analysts say the 2008-2010 average salary increase of 2.5% is positive because the economic recession could have kept wages from increasing at all.

Executive Director Peggy Outon of Robert Morris' Bayer Center for Nonprofit Management says the study also shows more women than men in local nonprofit leadership roles. But Outon says these women are getting paid almost 25% less than their male counterparts, who average more than $118,000 per year.

"We are going to be doing three years of detailed research on the lives of women in nonprofits, to try to see that they can become more adept at asking for raises, become more adept at showing their leadership and demonstrating the value of their leadership," says Outon.

The 25 % gender wage gap is slimmer than in the past, though; in 2002, women in local nonprofits earned just 62% of men's wages. However, Outon says more progress must be made: the national rate for women is 80%.

Outon does not anticipate the raise rate increasing over the next couple of years, and neither does United Way President Bob Nelkin.

"I think the greatest challenges are ahead," Nelkin says. "The word out of Harrisburg, although early in the administration, is fiscal discipline and less spending on human services and the safety net."

Study Ranks Cities for Online Philanthropy

Pittsburgh is the 12th most generous city per capita in terms of online giving. For the last 3 years, Convio, which provides technologies to help non-profits raise funds more effectively, has ranked 273 cities with populations of at least 100,000.
Convio's Patrick Hansen says for the second straight year Alexandria, Virginia; Cambridge, Massachusetts; and, Arlington, Virginia have topped the most generous large cities list.
Hansen says Pittsburgh has been in the top 15 in each of the three years of study, and the number of donations online by Pittsburghers has increased 35% from 2009 to 2010 and the dollar amount rose by 42%....
"That's a great trend to see for any city. That's something that everyone in Pittsburgh should feel good about."

Hansen says online in all 273 cities, $389 million was contributed in 2010...up 27% from the previous year. The average gift online went from $62 to $65. "People are definitely getting more comfortable contributing online. So, we are seeing some shift from other channels to the online channel and that's been a long-term trend over the last 10 years."

Hansen says this information can be helpful to non-profits "that they can use to their advantage, can inform the way they're pointing themselves and connecting with their donors and supporters."

While Pittsburgh was 12th nationwide, the next most generous Pennsylvania city is Philadelphia, ranked 139th.

Nonprofits to Voluntarily Give to City

For the first time in two years a cohort of nonprofits will contribute to Pittsburgh's budget. Organizations that are members of the public service fund, run by the Pittsburgh Foundation, will give $2.6 million each year for 2010 and 2011. City Finance Director Scott Kunka says the five year plan also includes the $2.6 million going forward and that amount could increase in the future. But a few council members were irritated that while the agreement would disclose which nonprofits were contributing to the city, it won't reveal how much each organization is giving. But Kunka says the city doesn't have a choice. "We don't really have a whole lot of leverage in this matter. This is not a number we negotiated with them. This is a number that they came to us and said 'this is what we have, do you want it or not?'" But councilwoman Theresa Smith said she was disgusted by the small amount offered up by the nonprofit community, saying the bad economy wasn't an excuse. "I actually think that this is insulting, this amount of money. To hear that they're struggling, well what about our residents? They're struggling." Kunka noted that the mayor and council both want the city's larger nonprofits to contribute more, but says Pittsburgh needs every dollar it can get and they'd be walking away from more than $10 million over five years. Council approved the measure.