Chief Accounting Officer Average Salary

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Chief Accounting Officer Average Salary Powered By Docstoc
                   By Mark Hrywna
                      The pay gender gap for nonprofit managers, par-        resources, but both working with the board and
                   ticularly at mid-sized organizations, has narrowed.       strategic planning.
                   Men and women heading organizations with $25                 Of the various nonprofits, those identifying them-
                   million or less of revenue are pretty much on equal       selves in the health category had the highest average
                   footing.                                                  salary for executive director in 2005 and 2006, at
                      That’s among the results of The NonProfit Times’       $139,009 and $132,707, respectively, followed by as-
                   2006 Salary Survey.The average salary for female ex-      sociations,at $111,388 in 2005 and $117,696 in 2006.
                   ecutive directors was $84,711, about 75 percent of           “I would surmise that one of the reasons that
                   the average male director’s salary of $113,173 in         there is a great disparity in the $50-plus million organi-
                   2005. In 2006, it’s expected to be $83,692, about 73      zations is that many of the CEOs/executive direc-
                   percent of the male’s $115,330.                           tors/presidents of these organizations were previously
                      But within organizations with budgets less than        with for-profits and were already in those compensa-
                   $25 million, the gap is much smaller, with female ex-     tion levels,” said Paula Lettice,executive director of the
                   ecutives’ average salaries anywhere from 82 percent       Entomological Society of America, based in Lanham,
                   to 96 percent of a male’s average salary.And in orga-     Md. Looking for someone with strong business skills
                   nizations of $25 million to $49.9 million, the average    and who knows a particular industry as an insider
                   woman’s salary was 150 percent of a man’s,although        would clearly be recruiting points.
                   that figure dropped to 39 percent among the $50              “Remember,there is a big difference between pro-
                   million-and-more nonprofits.                              fessional societies and associations, in style and func-
                      Overall among the respondents, the average exec-       tion as well as finances,” said Lettice,who entered the
                   utive director’s salary is expected to crack the          nonprofit sector five years ago.“And then, there is a
                   $100,000 mark in 2006, up to $100,118 from                further difference between charity-type organiza-
                   $98,476 in 2005, an increase of approximately 1.6         tions which are within the same nonprofit category
                   percent, but not enough to keep up with the rate of       as big-name associations. I imagine the compensa-
                   inflation (3.5 percent). It doesn’t get much better for   tion ranges are striking.”
                   the other nine positions included in the salary sur-         A woman did claim the highest overall salary for
                   vey. None of the increases for those positions expect     respondents of the survey for 2005, at $493,000, but
                   to outpace the average rate of inflation and only four    not 2006, which is expected to be $511,000, and
                   expect to increase at all: program director, 2.5 per-     held by a man.
                   cent; planned giving officer and major gifts officer,
                   1.5 percent; and chief financial officer, 1.5 percent.    Almost 50/50
                   Five expect to see some decline in their average             The gender split in executive directors overall is
                   salary: chief of direct marketing, 5 percent; develop-    nearly equal, with 48 percent of respondents indi-
                   ment director, 4.1 percent;Web master, 3.6 percent;       cating a male executive while 52 percent were fe-
                   director of volunteers, 3 percent; and director of        male.
                   human resources, 1 percent.                                  The overall gender split was similar to the break-
                      The second highest paying job in 2005 at the sur-      down within each category,with 48 percent of males
                   veyed organizations was between chief of direct           identifying their nonprofit as social/welfare and 45
                   marketing, with an average salary of $72,585, and         percent among females.
                   chief financial officer, at an average of $72,295.           Among sizes of organizations, the majority of fe-
                      One organization noted that it has co-executive        males, 57 percent, were directors of groups with
                   directors, one overseeing development, marketing          budgets of $1 million to $9.9 million and, followed
                   and programs,and the other over finance and human                                              continued on page 24

         F EBRUARY 1, 2006     T HE N ON P ROFIT T IMES                                                       23
                                                                                                                                                S PECIAL
continued from page 23
by 18 percent of those from $500,000 to $999,999,
and 16 percent of those less than $500,000.
    Of the 10 categories in the survey, including“other
purpose,” five had average salaries of at least $100,000
in 2005 and four expected to in 2006,with the lowest                                             THE NONPROFIT TIMES
average of $81,235 in 2005 and $82,255,both of which
were in the foundation category.
    Executive directors in the Mid-Atlantic and South-
west earned the highest average salaries in 2005,
$107,962 and $126,024, respectively, and that trend
should continue into 2006 at $109,752 and $132,964.        AVERAGES                                     Average Salary By Budget Size
    Joining the $100,000 club will be the average exec-    2005/2006
utive’s salary in the Central and North Central part of                                                       Overall Average     <$500,000            $500K – $
the U.S. Most executive directors’ average salaries are    Executive Director / CEO / President               $98,476/$100,118    $54,916 /$56,500     $73,105 /$
expected to increase in 2006, with the exception of        Chief Financial Officer                            $72,295/$73,413     $49,028 /$50,902     $60,531 /$
the New England and West regions.
    As one might expect, executive directors at the        Program Director                                   $59,094/$60,577     $32,977 / $34,872    $47,203 /$
largest nonprofits (those with budgets of $50 million      Development Director                               $62,455/$65,004     $34,600 / $34,740    $39,250 /$
or more) had the greatest average salary in 2005,          Planned Giving Officer & Major Gifts Officer       $68,912/$70,037     NA / NA              $68,000 /$
$210,896, but it was expected to decline in 2006, to       Chief of Direct Marketing                          $72,585/$68,970     $60,000 /$61,800     $68,919 /$
$207,145. The average salaries corresponded to the
                                                           Director of Volunteers                             $39,626/$38,423     $31,800 /$32,156     $32,646 /$
size of organizations, dropping below $100,000 when
it came to the $1 million to $9.9 million category.        Web Master                                         $51,416/$49,557     NA / NA              $66,962 /$
    Of the more than 300 nonprofits that returned sur-     Director of Human Resources                        $62,698/$62,070     $45,000 /$46,500     $57,942 /$
veys, almost half, about 48.5 percent, have estimated      *Declines anticipate turnover in position
annual gross income of between $1 million and $9.9
million. About 17 percent have gross income of be-                                   Male and Female
tween $500,000 and $999,999 while 13 percent are                                  2005 and 2006 Average
in the less than $500,000 category and 12 percent be-                               CEO Salary Range
tween $10 million and $24.9 million. The smallest                  $120,000
groups were those in the $50 million or more range, 6
percent, and $25 million to $49.9 million, 4 percent.
    The most responses, 46 percent, came from organi-              $100,000
zations identifying themselves as social/welfare fol-                                                                            2005
lowed by health, 13 percent; educational, 9 percent;
foundation, 8 percent; cultural, 7 percent; other pur-               $80,000                                                     2006
poses, 6 percent; association, 5 percent; religious, 4
percent; and civic, 3 percent.
    By region, the most responses came from the Mid-                 $60,000
Atlantic, 29 percent; North Central, 24 percent; and
West, 20 percent.                                                    $40,000
Bonus or no bonus?
    More than three-quarters of the organizations re-                $20,000
sponding do not pay performance-related bonuses to
top executives. Of those that do, they rewarded their
chief executive with an average bonus of almost 11                            0
percent of their salary. Other officers received smaller                                MALE              FEMALE
percentages, ranging from 4 to 9 percent.                                                 CEO                 CEO
                                                                                       2005 & 2006         2005 & 2006
    Responding to the question of whether they would
consider offering a one-time bonus to the right candi-                                                                                  Average Male CEO
date if they had to recruit a new chief executive, 13                                                                                       $113,173
percent said yes, while 45 percent said no, but 42 per-
cent indicated they don’t know.                                                                   Average Female CEO
    More than 82 percent of nonprofits indicated there                                                  $84,711
is no executive succession plan in place,and more than
two-thirds said there is not one in process.
    The biggest trend in nonprofits has been the cu-
riosity of decision makers, asking much more fre-
quently about what compensation packages look like
at comparable organizations, according to Kristin          AVERAGES
Mannion, lead partner for nonprofit sector practice at
Korn/Ferry International in Washington, D.C.
                                                           2005                                                             New England          Mid-Atlantic
                                                           Executive Director / CEO / President                                $ 80,729             $107,962
    Nonprofits also are less willing to go in the direc-
tion of a bonus, she said,“again because of scrutiny       Chief Financial Officer                                             $ 60,538             $79,482
that’s been ongoing, whether from Congress or a pri-       Program Director                                                    $ 54,009             $68,888
vate donor…the notion that a nonprofit is a non-           Development Director                                                $ 49,781             $69,916
profit…that (a bonus) takes away from money that           Planned Giving Officer & Major Gifts Officer                        NA                   $95,333
should be going to a program.”                             Chief of Direct Marketing                                           $ 49,433             $92,612
    As for other benefits that executives receive, the
                                                           Director of Volunteers                                              $ 33,900             $53,466
most popular was salary increase, followed closely by
professional development education and life insur-         Web Master                                                          $ 47,237             $56,655
ance. Membership dues and a cell phone were also           Director of Human Resources                                         $ 53,791             $72,744

24                                           F EBRUARY 1, 2006    T HE N ON P ROFIT T IMES
                                                                                                   listed, followed by some who received a car or an ex-
                                                                                                   pense allowance, or tuition reimbursement or extra
                                                                                                       In general, average salary increases are expected to
                                                                                                   remain stable in the coming years,at roughly 3.25 per-

      SALARY SURVEY                                                                                cent. Some organizations reported staff pay increases
                                                                                                   as much as 10 to 12.5 percent while some have frozen
                                                                                                   staff salaries.
                                                                                                       For some nonprofits, just finding the money to pay
                                                                                                   for staff will be difficult. Executive Director Susan
                                                                                                   Moyer is the only full-time employee at the Bayfront
                                                                                                   East Side Task Force (BEST), a community housing de-
                                                                                                   velopment organization in Erie, Pa.The only other em-
$999.9K     $1M – $9.9M        $10M – $24.9M        $25M–$49.9M            $50M+                   ployee is a part-time grants administrator who also
$73,783     $87,970 /$90,413   $146,069 /$149,427   $164,727 /$155,867     $210,896 /$207,145      handles the organization’s accounting. “We’re con-
                                                                                                   stantly looking for new revenue streams,” she said,
$58,096     $54,017 /$56,636   $95,782 /$97,248     $117,200 /$120,025     $128,047 /$123,898      adding that the group has been fortunate to have two
$48,829     $51,892 /$54,435   $78,498 /$80,228     $100,000 /$109,300     $104,714 /$97,665       local major corporate sponsors since its inception to
$47,964     $55,338 /$57,994   $73,317 /$76,770     $96,571 /$110,010      $107,812 /$105,578      pay for salaries and overhead.Although the sponsors
$75,000     $52,690 /$54,650   $71,888 /$73,325     $66,167 /$69,744       $100,852 /$95,338       have committed to a five-year state tax credit program
                                                                                                   to support the nonprofit, only 15 percent of those
$42,500     $46,146 /$51,227   $83,223 /$89,032     $72,250 /$82,755       $154,702 / NA
                                                                                                   funds can be used for administrative costs.
$33,458     $34,161 /$37,241   $41,081 /$41,894     $47,000 /$43,900       $74,287 / NA                Moyer said BEST is looking at other ways to raise
$55,388     $39,590 /$37,139   $54,591 /$57,085     $66,000 /$128,750      $53,605 /$48,127        money, such as development fees for its new home
$48,711     $49,031 /$48,932   $66,395 /$66,755     $74,333 /$79,121       $96,751 /$90,953        construction and federal funds to make up the differ-
                                                                                                   ence.“There’s always competition for funding.”
                                                                                                       Moyer is also keeping a close eye on the federal
                                                                                                   budget for 2006.“We’ll be in a heap of trouble” if cuts
                                                                                                   are made to the Community Development Block
                                                                                                   Grant and other home funding programs.“Most of our
                                                                                                   housing programs are funded through them,” she said,
                                                                                                   including a down payment assistance program that
                                                                                                   has driven its new home construction program.“We’re
                                                                                                   closely looking at that.” On top of that,the local City of
                                                                                                   Erie,which contributes to BEST,is close to becoming a
                                                                                                   distressed city, she said.
                                                                                                       It’s not just government that will affect nonprofits
                                                                                                   in 2006, but also private industry.

                                                                                                   Health care rising
                                                                                                      Nonprofits are not immune when it comes to in-
                                                                                                   creasing health care costs.While there were reports
                                                                                                   of health premiums increasing anywhere from 2 to
                                                                                                   30 percent, the average among respondents was
                                                                                                   11.5 percent. More than three-quarters of the non-
                                                                                                   profits that responded expect premiums to in-
                                                                                                   crease, while only 11 percent do not. The
                                                                                                   remainders either do no have health benefits or did
                                                                                                   not know whether they would increase.
                                                                                                      Some nonprofits expect to shop around for
                                                                                                   lower premiums or make changes in benefits lev-
                                                                                                   els, but for the most part the expense will be split
                                                                                                   between employee and organization. How much
                                                                                                   the organization picks up varies, with ranges from 5
                                                                                                   percent to 100 percent, in the cost to be borne by
                                                                                                   employee or organization. The average percentage
                                                                                                   for employees paying for their healthcare increases
                                                                                                   was 47 percent, while for organizations the average
                                                                                                   was 84 percent.
                                                                                                      If it’s not enough worrying about how to pay for
                                                                                                   the rising cost of health care and trying to pay a de-
                                                                                                   cent wage for staff, there’s the most basic practice of
                                                                                                   any nonprofit that’s getting more competitive: rais-
c         South           Central      North Central       Southwest               West            ing money from donors.
          $94,434          $94,171        $99,128            $126,024              $91,200            The economic impact of troubled General Mo-
                                                                                                   tors and Delphi Automotive Systems will have a
          $63,607          $66,432        $73,931            $107,375              $64,565
                                                                                                   wide-ranging effect on the region, said Gary Apsey,
          $54,053          $50,130        $56,930            $54,493               $53,806         foundation director at Covenant Health Care Foun-
          $53,071          $60,268        $64,320            $60,249               $59,886         dation in Saginaw, Mich., about 100 miles north of
          $51,105          $116,000       $62,764            NA                    $54,995         Detroit. “They’ve had a long history of presence
          $58,800          $55,910        $76,141            NA                    $50,800         here,”Apsey said of GM and its spin-off.The possibil-
          $38,820          $36,929        $39,283            $34,780               $26,400         ity of shutting down Delphi would mean the loss of
                                                                                                   3,000 jobs. “If it leaves this part of Michigan, it’s
          $43,737          $70,066        $60,520            NA                    $28,834         going to have a significant impact on what happens
          $62,200          $62,353        $65,125            $51,667               $52,528         here,” he said. NPT

                                           F EBRUARY 1, 2006   T HE N ON P ROFIT T IMES                                                25
                                                                    SPECIAL REPORT
                                                                     PECIAL EPORT

Lure And Keep Workers With Inexpensive, Non-Cash Benefits
By Mark Hrywna                                             show that benefits offered by nonprofits these days      a week or two around the holidays while still paying
                                                           span a wide spectrum.There are groups that offer full    employees.With the increasing costs of health bene-
   Your organization is looking for a new leader.          or discounted health club memberships. Other             fits, another incentive is to allow employees the cash
You’ve made your pitch, offering what you think is a       groups, in lieu of perhaps better wages, provide more    if they are covered by their spouse’s health benefits.
competitive salary and benefits package. What’s it         lucrative or comprehensive benefits, such as 100 per-        Jennifer Dunlap, president and chief executive of-
going to take to close the deal?                           cent health benefits or substantial pensions. Some re-   ficer of Development Resources, Arlington,Va.,
   Some nonprofits have gone beyond salaries and           ported offering as much as $600 in flexible spending     which does executive recruitment and strategic de-
benefits to entice executives, as well as employees, to    accounts for supplemental health policies.               velopment planning for nonprofits, said flex time is
work for them. In some cases, it’s because they can-          Many nonprofits are flexible when it comes to em-     something that’s been around for a long time, but
not afford to offer more in salary, while in others it’s   ployees’ work schedules, and a number of survey re-      nonprofits are embracing it more in recent years to
been a gradual evolution in employee needs.                spondents indicated they move to a four-day work         keep employees motivated and engaged. Some orga-
   Results of The NonProfit Times Salary Survey 2006       week during the slower summer months or close for        nizations have moved to four-day workweeks year-
                                                                                                                               round, giving employees every other Friday
                                                                                                                               off, or promoting telecommuting in a much
                                                                                                                               stronger way.“It’s always been around, now
                                                                                                                               it’s being accepted and encouraged,” she
                                                                                                                                   Retention in the nonprofit field is chal-
                                                                                                                               lenging, Dunlap said, which is one reason
                                                                                                                               she’s seeing more attractive benefits, such
                                                                                                                               as retirement fund matches and retention
                                                                                                                               bonuses. Some organizations match 100
                                                                                                                               percent the employee’s pension contribu-
                                                                                                                               tion, while others offer bonuses to employ-
                                                                                                                               ees who stay at an organization for a certain
                                                                                                                               period of time. Performance bonuses also
                                                                                                                               are becoming more popular, not only for
                                                                                                                               fundraising professionals but also more
                                                                                                                               broadly, she said.

                                                                                                                             A team effort
                                                                                                                                At Chattanooga Christian School in Ten-
                                                                                                                             nessee,funding benefits is a team effort.The
                                                                                                                             approximately 120 employees contribute
                                                                                                                             to a self-funded adoption fund, President
                                                                                                                             Don Holwerda said.The school uses a pay-
                                                                                                                             roll deduction to the group health insur-
                                                                                                                             ance plan and reimburses an employee up
                                                                                                                             to $3,000 for all adoption-related bills. A
                                                                                                                             payroll deduction of $3 per month would
                                                                                                                             generate that within a year, he said.
                                                                                                                                “It’s a very little payment for what we
                                                                                                                             think is a considerable benefit,” Holwerda
                                                                                                                             said. Employees voted on the deduction be-
                                                                                                                             fore it gained approval from the school’s ad-
                                                                                                                             ministration and board. The payroll
                                                                                                                             deductions stop once the fund reaches
                                                                                                                             $18,000,enough for up to six adoptions per
                                                                                                                             year. If no one dips into the fund, it simply
                                                                                                                             earns interest.
                                                                                                                                The school had a teacher return in Janu-
                                                                                                                             ary from adopting a child in China, Holw-
                                                                                                                             erda said. The adoption fund probably
                                                                                                                             won’t cover the whole thing, but neither
                                                                                                                             does a group health plan.“It may help with
                                                                                                                             the plane ticket,” he said.
                                                                                                                                This is the fourth time a teacher has
                                                                                                                             taken advantage of the benefit since the
                                                                                                                             school implemented it about five years ago.
                                                                                                                             There have been recent discussions about
                                                                                                                             increasing the benefit to $5,000, he said,
                                                                                                                             simply because the adoption process costs
                                                                                                                             so much now.
                                                                                                                                “It’s a great benefit that helps people,”
                                                                                                                             Holwerda said.“It makes a strong statement
                                                                                                                             that if you’re starting a family, no matter
                                                                                                                             how you go about it, we’re happy to help
                                                                                                                             and step in.”
                                                                                                                                Incentives that support the family are
                                                                                                                             most appreciated, Dunlap said. For in-
                                                                                                                             stance, one organization she has dealt with
                                                                                                                                                        continued on page 34

26                                             F EBRUARY 1, 2006        T HE N ON P ROFIT T IMES
Lure And Keep Workers With Inexpensive, Non-Cash Benefits
continued from page 26                                      jority of the almost two dozen employees take the          in Souderton, Pa., about 40 miles north of Philadel-
allows five hours per month for a parent to visit a         opportunity, Executive Director Lynae Giseke said. In      phia, employees are allowed one day per year specifi-
child’s school.                                             her eight years, she’s brought home eight cats. The        cally for a personal retreat. Case managers spend
   Other nonprofits allow employees to pool their va-       shelter has a range of animals, from dogs and cats to      their days hearing unfortunate stories from clients
cation or sick time for those who might need it. Dun-       chinchillas, guinea pigs, birds and more.                  who are in need of housing, which can be stressful.
lap saw that occur in the aftermath of Hurricane                It’s not uncommon for a company to defray the          That’s why Executive Director Karen Kispert wants
Katrina, when people were trying to volunteer their         cost of continuing education, or pay for it entirely.      her staff to take advantage of the retreat day, which is
time to help the devastated region.                         One nonprofit responding to the survey provides a          offered in addition to three personal days.
   Some nonprofit volunteer organizations allow em-         free master’s degree, to managers who only have an            The clients served by Indian Valley are typically
ployees a certain amount of time per month or per           undergraduate degree, and will use the degree to as-       under-employed and receive little, if any, sick time,
year to volunteer while others allow time off for em-       sist the agency. Other groups offer various reimburse-     Kispert said. If they do get sick or need time off, their
ployees to serve on boards of other organizations.          ments toward continuing education or paying the            income usually suffers, prompting the need for help
                                                            cost of obtaining certain licenses.                        with housing. Other situations might have women
It’s the little things                                          For nonprofits that present classes as part of their   leaving abusive relationships or family or friends who
   Benefits don’t always have to be expensive or            mission, some provide the classes to employees at a        can no longer have people living with them.
complex to draw interest.                                   reduced cost, or free.                                        The housing agency began offering the annual re-
   “It’s the smaller things that just keep folks happy,”        At the National Outdoor Leadership School              treat day about four years ago and about two of its
Dunlap said, such as bringing in lunch on Fridays.          (NOLS),employees who have been with the organiza-          three full-time employees use it each year, according
These things don’t cost an organization a lot, she          tion at least one year can take climbing, kayaking or      to Kispert. As executive director, she can get out of
added, but nonprofits need to find things to motivate       sailing instruction.The wilderness organization,based      the office to conferences and such, and she encour-
and reward employees.                                       in Lander,Wyo., about 200 miles southeast of Yellow-       ages her program staff to take the retreat day.
   Dr.Bob Zlotnick,executive director of Atlantic Pre-      stone National Park,teaches outdoor skills and leader-        “It’s not just about going to a spa,” Kispert said,but
vention Resources in Pleasantville, N.J., a substance       ship.                                                      to make that person refreshed psychologically, emo-
abuse prevention group, said his 15 or so employees             John Gans, president and executive director at         tionally and spiritually. For Kispert, it was attending a
love that they can obtain a membership to the local         NOLS, said the benefit allows employees taking the         music festival. For another employee, the retreat was
Sam’s Club through their employer. To shop at Sam’s         wilderness classes to learn more about the program,        taking part in a church outing.
Club, a division of Wal-Mart, customers must pay a          whether they work on the finance end of things or             The retreat day grew out of a request by the shel-
membership fee of approximately $30.                        outdoors, but also “gives them something of value.”        ter director to attend a three-day weekend women’s
   Some benefits don’t have to cost any money at all.       Many of the 600 employees worldwide often take ad-         retreat through her church. Kispert made the re-
One organization allows parents to bring their chil-        vantage of the courses at some point in their career,      quest to her board’s personnel committee, which ap-
dren, up to 1 year old, to work.                            he said.                                                   proved of it.
   At the Minnesota Valley Humane Society in                    Some nonprofits have begun to give employees ac-          Nonprofits, just like for-profit corporations, likely
Burnsville, Minn., outside Minneapolis-St. Paul, em-        crued time off, not specifying for personal, sick or va-   will see benefits continue to evolve as they continue
ployees are allowed one free animal per year. A ma-         cation time. But at Indian Valley Housing Corporation      to seek ways to attract and retain their employees. NPT

On Volunteers                                                                                                          Nonprofit Tax Reform
continued from page 29                                     youth groups, sororities and fraternities, etc.             continued from page 20
nated? What special expertise will be donated vs.          Would it be so very hard to agree on a few basic            and it cannot transfer assets to a donor advised
skills expected to be provided by paid staff?              pieces of information that all these groups would           fund.
    Final report: How many volunteers were in-             collect and report?                                             Finally, in what may prove to be a difficult rule
volved (as compared to expectations) and how did              All of the above speaks purely to counting               for some Type III SOs, the excess business holding
they participate? What did they add to the project         heads. Unfortunately, most assessments of volun-            rules will become applicable. This will limit the
to complement the work of paid staff? How will             teer engagement focus on tallying the number of             SO’s holdings to 20 percent of any one business
community engagement be maintained after the               hours served, though this is relatively meaningless         enterprise.There will certainly be transition rules
funding ends?                                              as a measure of quality of service.The older Inde-          for existing situations.
    If a funder thinks it’s important to ask for such      pendent Sector reports reveal that the number of                The Act contains a number of other reforms.
information, wouldn’t it make a difference?                volunteers has gone up but the average number of            Among them is a requirement that small organi-
    There are other sources of a wealth of additional      hours served has gone down. How should this find-           zations that do not file Form 990 will have to file
information about what is being done by members of         ing be interpreted?                                         a notification of their continued existence with
the community in unpaid support of social causes.             Rather than some sort of warning sign, perhaps           the IRS. If they fail to do so, they can lose their
    Where are reports about community service or-          it means that volunteers have grown so effective in         tax-exempt status. Organizations that participate
ganized by schools? Given the official nature of           their service (or are so well managed by staff who          in tax shelter transactions will face severe penal-
school settings and the type of data gathering that        understand volunteer administration principles)             ties. The value of contributions of household
is done there routinely on other subjects, why             that they can accomplish more in less time.                 goods and clothing will have to be based on a
can’t we expect to learn what students are doing              This discussion of statistics is critically con-         listing issued by the IRS each year.The IRS will be
in the community, how many hours they are doing            nected to the debate about the vocabulary of ser-           allowed to share information with state regula-
it, whether or not they stay active beyond mini-           vice. If we are going to count volunteers, whom do          tors (e.g., state attorneys general) about actions
mum requirements, and what impact they may                 we mean? Do we count board members? Stipended               taken with respect to tax-exempt organizations.
have had?                                                  AmeriCorps participants? Student “interns”? Now                 All of these provisions and more are in-
    All-volunteer associations are equally liable for      add faith-based service into the mix and you can            cluded in the Act as passed by the Senate. If
lack of reporting. We have heard a great deal              see why getting a handle on the true scope of the           these provisions are included in a final bill as it
about the reduced level of membership in civic             field is so hard.                                           comes out of Conference Committee, we will
clubs, fraternal groups, and other membership or-             Any community in the world where there is a              let you know. In the meantime, if you will be
ganizations. But what about the members they               volunteer center or similar body, or where there is a       affected by any of these provisions, you should
still have? The real question here is distinguishing       DOVIA or other professional network of volunteer            be planning for how you will comply. NPT
between people who join a group and those who              program managers, can decide -- on its own -- to col-
actually do volunteer work for and through it!             lect and report “The State of Volunteering Here.” It        Harvey J. Berger, CPA, is a partner and national
Some honest disclosure, while potentially embar-           simply takes will. NPT                                      director of not-for-profit tax services in Vienna,
rassing, might actually help these organizations to                                                                    Va., for the accounting and management con-
improve their recruitment of new members.                  Susan J. Ellis is president of Energize, a Philadel-        sulting firm Grant Thornton LLP. His email ad-
    Why can’t youth-involving organizations re-            phia-based training, publishing and consulting              dress is: D. Greg Goller, CPA, is
port on the accomplishments of their partici-              firm specializing in volunteerism. She can be               the partner-in-charge, Not-For-Profit Solutions
pants? It is more than folklore that Boy and Girl          reached via email at Her             Group in Grant Thornton LLP’s Washington,
Scouts do community service, as do faith-based             Web site is                             D.C. office. His email is

34                                             F EBRUARY 1, 2006          T HE N ON P ROFIT T IMES

Description: Chief Accounting Officer Average Salary document sample