Every Tuesday, The Chronicle of Philanthropy has a great online discussion on various topics impacting the nonprofit sector. Today’s topic was on compensation.  Here is a portion of the transcript that features Susan Egmont,  president of an executive search firm in Boston. You can read the full discussion by clicking here:

Question from Peter Panepento:
How do you see the current economic picture affecting executive compensation in the nonprofit world? Do recessions tend to have much of an impact on salaries in this sector?

Susan Egmont:
Nonprofit organizations are nervous right now (as are we all!). For organizations funded by government, tax collections are less than projected, and State budgets are being revised downward. Some of those cutbacks will be made in funding to human services, environment, arts and education and healthcare nonprofits. At the same time, employees may be seeing increases in food, housing, child care and other necessities. I expect most organizations will try to keep up with the cost of living, but larger merit increases may wait until there is a sense of more predictability. On the flip side, an executive who is “rainmaker” and can assure the board of the ability to meet the budget will be highly valued and may be able to ask for a salary that will insure s/he isn’t looking elsewhere.