Two reports on pay and performance in NFPs published

Grant Thornton, a business advisory company, and their partners Strategic Pay have released two reports on the Not for Profit Sector in Australasia – with a heavy slant towards Aotearoa New Zealand. The reports are free of charge.

Passion and Purpose: What drives CEOs in the Not for Profit Sector 

This 24 page document is based on a survey of 33 Chief Execs along with Strategic Pay’s ongoing cross-sector research. One headline is that NFP senior staff are paid an average of 30% less than in the private sector and 10% less than those in similar roles in the public sector. Reasons for accepting the lower pay rates vary but there is consensus that the benefits of doing good and working with like minded people are factors.

There are no surprises when it comes to what is seen as the top challenge in the sector, funding is cited by 1/3. But with Governance and management prioritised by a ¼ each there may be more to consider for the health of the sector than money.

Page 6 contains the research findings and is definitely worth a scan.

Doing good and doing it well 

With a different research methodology this report finds funding the top priority for 3/4 of Kiwi NFPs and 2/3 say it’s the top priority for the whole sector. The priority given decreased across organisations as turnovers increased.

The research delves into 4 topics:

  • funding: 39% of NZ NFPS say they have frozen salaries
  • governance: only 3% of NFPs report they have a responsibility to report to the general public/community
  • social enterprise: 25% of NFPs have considered buying an existing business
  • social media: 79% of NZ NFPS have websites compared to 99% of Australian NFPs

This report doesn’t do quite so well with the images chosen to illustrate the findings. They are mainly male and when a woman does appear on page 32 balance is offered with a corresponding male character. This is despite half of the CEOs interviewed being women. And that’s before we look at the activities depicted.

The 4 page Significant Issues section starting on page 6 gives a handy overview.

You can download PDFs of the documents from the companies’ websites: