THE CHRONICLE OF
PHIL A NTHROPY®
The Newspaper of the Nonprofit World
Volume XXIII, No. 1 • October 7, 2010 • $5
MARK WILSON/GET TY IMAGES
Risa Lavizzo-Mourey, of the Robert Wood Johnson Foundation,
made $1,041,330 in 2009, of which $409,806 was deferred compensation.
Facebook’s CEO ‘Friends’ Schools
—With a $100-Million Gift
By Maria Di Mento
and Caroline Preston
MARK ZUCKERBERG, the 26-year- old chief executive of Facebook, wasn’t content to finish his degree at Harvard, famously dropping out
to expand the social-networking Web
site he founded. Now, it seems, Mr. Zuckerberg isn’t content to wait to give away
the money he’s been making, either.
Mr. Zuckerberg’s $100-million pledge
to improve Newark, N. J.’s public schools,
which he announced last month on The
Oprah Winfrey Show, instantly made
him one of the country’s biggest donors
and the first member of his generation
to make a huge gift. The money, which
will come from Mr. Zuckerberg’s Facebook stock holdings, will go to a foundation he is creating, Startup: Education,
to support the effort.
Whether Mr. Zuckerberg, whose net
worth Forbes pegs at $6.9-billion, is
representative of his generation is de-
batable, but his decision to support
school-improvement efforts does pro-
vide further evidence that the young
and wealthy are giving earlier than
their affluent predecessors, and to so-
cial problems rather than institutions.
Betting on the Mayor
The gift did not come through any
Continued on Page 27
Nonprofit Executives’ Pay Stalls
as Bad Economy Lingers
As need for talented leaders increases in tough times,
boards could come under pressure to raise salaries
By Ben Gose
SALARIES for nonprofit executives appear to have edged up only slightly in 2009 and may stay
constrained for some time, even if a rebounding economy sends compensation
in the business world flying again.
Compensation experts say the weak
economy and increasing scrutiny of
charity salaries by Congress, attorneys
general, and the public is keeping a lid
on salary increases.
“The nonprofit sector was the last to
experience the pullback in compensation, and it may be the last to emerge
from the downturn,” says Jose Pagoaga,
an executive-compensation consultant
at Mercer.
In a recent spot check of executive
compensation at some of the nation’s
biggest charities and foundations, The
Chronicle found that 55 chief executives were paid more in 2009 than in
2008, 34 were paid less, and 4 saw no
change. (The sampling of nonprofit-ex-ecutive pay from charities and foundations whose 2009 data are now available is included on Page 12.)
Some surveys—including those conducted in Northern California by Non-profit Compensation Associates, in
Oakland, Calif.; in New York City by
the Nonprofit Coordinating Committee
of New York; and in New Jersey, New
York, and Washington by the recruiting firm Professionals for Nonprofits—
suggest that salaries for nonprofit executives are remaining flat or rising by
only a few percentage points.
For the second straight year in 2009,
nonprofit executives appear to have
avoided the deep cuts in compensation
that their for-profit counterparts endured. A survey by Equilar, a Redwood
City, Calif., company that research-
Continued on Page 11
A Seal of Approval for Companies That Do Good
CLEANFISH, IN SAN FRANCISCO, IS DESIGNATED AS A B CORPORATION
CLEANFISH
B Lab, a nonprofit group near Philadelphia, has devised standards for
determining which socially conscious businesses are really serving the
greater good. More than 300 companies from around the country have
earned the “B corporation” credential thus far, and B Lab is now working on
creating criteria for social-purpose investment. To learn more, go to Page 18.
CAMILLUS HOUSE
Special Events
n As gala season rolls around,
charities are working harder to
make their fund-raising benefits
pay off—and are giving extra
attention to what donors really
want. Page 7
Outside Help
n The rapid expansion—and
specialization—of the consulting
field presents an array of
choices and challenges for
nonprofit groups seeking expert
advice. Page M-1
