Children Charities: Salaries of the Executives

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Sponsoring a Child

You have often seen the advertisements on television, with photos of childen in dire poverty, requesting you to sponsor a child. The truth is that there are many children around the world that need urgent help and there are many excellent organizations that provide much needed assistance.

But do you realize that the executives of these organizations earn, in many cases 5 or 10 times more than what you earn?

It seems contradictory that charity advertisements pleed for funds while charity executives enjoy large paychecks.

The president of the organization that I had been contributing to wrote a letter to sponsors announcing a 22% increase in monthly contributions saying "We have struggeled to keep up with rapidly rising costs without reducing the services and benefits we provide to the children under our care. Cutting back is something we just dont want to do." Cutting back his salary or his staff's salary is something else he didnt want to do. This letter was from an executive whose pay package is approximately $400,000 per year.

I wrote to the Child Sponsorship Organization that I was donating to and asked how they justified the high salaries. I received a detailed response, which included this:

"We feel that looking just at the salary of one individual or a handful of individuals is to miss the big picture and to get a mistaken impression. We could pay less and require less of our employees in terms of skills, experience and performance, but we feel the resulting inefficiencies would end up costing us more in the aggregate and benefiting the children less."

Two follow-up emails went unanswered.

I contacted several journalists to try to interest them in writing an expose, but I was told that there was little interest in the story. I was told that it was a well known fact that many charity CEOs are making huge bucks at the expense of the children. It simply was not news.

While I believe that many of these organizations fullfill a vital need and deserve your support, I STRONGLY suggest that you research the organization that you contribute to to make sure that its objectives match your requirements. I also ask your help to get journalists to start writing about this topic. To that end, please see the petition at the bottom of this page.

Chief Executive's Salaries 

CEO Salaries

Charitable Organizations are required to submit a Form 990 to the IRS and usually this form is on the charity's website. From the Form 990 you can find the CEO's salary. However, these forms are often 1-2 years old. Since CEOs usually receive hefty pay raises, this means some of the salaries you see below are probably considerably higher today.

World Vision
www.worldvision.org
Richard Stearns, President: $407,799

Children International
www.Children.org
Jim Cook CEO: $365,700

Save The Children
www.savethechildren.org
Charles MacCormack, President: $336,335

Christian's Children's Fund
www.ChristianChildrensFund.org
John Shultz President: $290,799

Compassion International
www.compassion.com
Wess Stafford, CEO: $205,939

Pearl S Buck
www.pearlsbuck.org
Janet L. Mintzer, President: $135,200

Christian Foundation for Children and Aging
www.cfcausa.org
Robert Hentzen, President: $105,378

Children, Incorporated
www.children-inc.org
Marian G. Cummins, President: $90,904
Poor Child

Sources and Resources that monitor charities 

These agencies will give you more information about the salaries of the CEO of your charity.

Give (Sponsored by the BBB)
Charity Navigator

Children Incorporated 

Children Incorporated, www.children-inc.org, is one charity I am considering supporting. Here are my reasons:

  • President Cummings salary is around $100,000. This appears to be one of the lowest salaries in the industry.
  • Charity Navigator gives them 3 (out of 4) stars.
  • Charity Watch gives them an A-
  • Give.org says "Children, Incorporated (CI) meets the Standards for Charity Accountability."


  • Children Incorporated does not seem to be denominational. At least, their site does not appear to be affilated with a particular religion or philosophy other than to help children in need.

    So far, what I see, I like. But at the moment, I am keeping an open mind.

    Resources to Get More Information About Your Charity. 

    Do some reseach before you donate

    The Better Business Bureau Runs a website called Give, which allows you to see an overview of each charity.

    Charity Navigator offers free detailed information about a number of charities.

    Both of these agencies will tell you the salaries of the CEO of your charity.

    Watch A Video About the High Salaries of Charity CEO 

    Before you donate, find out how much YOUR CEO earns.

    CEO Compensation Study

    Runtime: 3:31
    2805 views
    1 Comments:

    curated content from YouTube

    Is there a limit to the salaries that charity CEO's should make? 

    What do you think?

    Some people feel that a charity is like any other business and a good CEO is worth the high salary because they can bring money to the charity and make it run better. Others believe that charities should be managed by people who care about what they are doing and are not in it to become rich.

    What do you think?

    Do You Think That A Charity CEO Should Earn $500,000/year

    Loading Fetching blurbs now... please stand by

    Absolutely, They Are Worth It!

    Ann M says:

    What if they give 50% of their salary away? What if 50% of their time is spent in foreign countries helping people? What if they have tripled the income of their organization and lowered overhead by 5 percentage points (R. Stearns has)? Most times we don't see the whole picture.

    MarkShark says:

    Although I definitely think this is too much, I do agree that it depends on the size of the organization and how much total income they take in. For example, the charity you are thinking about giving to, Children Incorporated, although their CEO only makes $100,000, they only take in a little over $7 million; whereas the CEO for Save the Children makes $400,000 but they take in over $453 million a year. When you look at it that way, the CEO for STC is taking a much smaller percentage of the overall funds for his salary. But also STC has a paid staff of 5,906 and who knows how much each person makes. It's a tough call.

    Lee says:

    Maybe - depends on the size and scope of the business and percentage of admin expenses.

    No, It Just Is Not Right!

    Jeanne Gemini says:

    Never, if they are leading such an organization, they should be paid a good but definitely not exorbitant salary. Unless, they are committing to donate at least 75% of that salary to the cause.

    tolo says:

    no they shouldn't.

    Lillie Granger says:

    If the CEO of a charity earns more than I do I do not feel the need to give to the charity--from what i see, they all earn more than I do--I think I will keep my money from now on.

    skilly says:

    It is appalling that an executive makes this kind of money while children are starving around the world. The sad reality is that in order for large multi-national NGOs to attract top talent they have to pay close to what the large for-profit corporations are paying. Otherwise, it would be difficult to attract good leaders. Don't get me wrong I still think it is IMPOSSIBLE to justify, but in Richard Stearns would probably command twice as much in the for-profit sector. Personally I live in Africa on a SUPER tight budget serving those starving children. Great Lens. 5*. Check out my lens: http://www.squidoo.com/facesofafrica. I think you will enjoy it. God Bless!!

    jim horne says:

    NO!

     
    view all 14 comments

    What kinds of questions should you ask before you donate your money? 

    Poor Child
  • What services will my child receive?

  • In some cases, the services are minimal. Nothing more than school books and an annual check up. Is that worth it?

  • Will my money go to directly supporting my child?

  • In some cases, your money goes to a 'general fund' which the charity uses as it sees fit. It does not go directly to your child. Personally, I prefer that my child receive services, but this is up to you.

  • What percentage of my money goes to my child?

  • Do not contribute unless at least 80% goes to the fund. No more than 20% should go to administrative costs.

  • How much money does the head of the chairity make?

  • Personally, I believe that the head should receive a reasonable salary, but should not be getting rich. What is reasonable? In my opinion $100,000 is a reasonable salary. I think it is disgusting that some charity heads feel that salaries of $300,000+ are justified. I would NOT recommend donating to any charity where the executives are making such salaries.

  • How can I communicate with my child?

  • Some charities allow you to send emails to your child, which are then translated locally. You will receive your response by regular snail mail. Others require that you send your letters by regular post.

  • Is this charity affilated with a particular religion?

  • Many charities began as missionary work for a particular religion. While there is nothing wrong with this, they may be using the charity to develop their religion abroad. Just be aware of the goal of the organization. Is it to help children? Or is it to convert new members? I want to support an organization whose primary goal is to help children, NOT to create new members for their religion. I want my charity to use my donations to feed and educate poor children, not to build churches.

  • Is the charity approved by watchdog organizations such as Give or Charity Watch?

  • Click the link for Give and see. However, amazing as it seems, many charity watchdogs like Give will approve a charity, even when the chief executive makes $0.5 million annually. Give's evaluation should be just one criteria. Do not base your final judgement on the opinion of the charity watchdogs.

    How To Change This? 

    Poor ChildThe ONLY way to change this is to bring this issue to the public attention. The only way that is going to happen is if not ONE but many journalists write about it, until donors understand what is happening and the situation changes.

    If donors start to realize how their money is being used, they will direct their donations to organizations which use their funds more responsibly. Charity Board Members will fire execs who insist upon earning megabucks and hire people who really want to help the children.

    Let journalist KNOW we are interested in this subject. Let them know it IS news. Let journalist know that we want them to investigate and publish this story until the situation has significantly improved.

    If you know a journalist, forward this page to them and ask them to write about it. If you do not know a journalist, sign the petition below.

    What do you think about CEO's of Children's Charities receiving salaries above $300,000? 

    Would you prefer to donate to a children's charity where the CEO did not receive a high salary? Or do you think that it is necessary to pay a high salary in order to recruit a talented CEO?

    Lensmaster

    Nel wrote

    I really focus on what the top dogs make. Non Profits are big money makers including churches. When you are at the Grocery store and they ask you to donate, ask what the top dog draws in as a salary. Wait to see the reaction as they are puzzled. I noticed one employee saying that she will not solicit that anymore until her manager can answer that question. www.nelsonmoyle.com

    Reply Posted March 24, 2009

    Quirina wrote...

    Well, I just made a lens on 'African Angel'. what a great idea! ;) It is my favorite charity, like I mentioned below, and absolutely efficient!
    For the lens, please see: http://www.squidoo.com/African-Angel ;)

    ReplyPosted March 06, 2009

    Quirina wrote...

    This is an issue I am absolutely concerned about. I used to donate to Plan International, but cancelled the commitment because I felt unhappy with it. I do not know what their CEO is making, but I felt uncomfortable because of the glossy surface of their printed matters and advertisements, and also in my particular case they did not keep their promises on personal communication between my foster child and me.

    However, I have a new favorite charity, which is based in Germany (like me) and supports children in Ghana. A very small organisation, and very convincing. All work done by normal people in their leisure time, I think. It is called 'African Angel'. http://www.african-angel.de/en/index.html

    ReplyPosted March 06, 2009

    Lensmaster

    Brenda wrote

    I appreciate this article - it is very informative. It will make my decision of who to sponser a lot easier!

    Reply Posted October 27, 2008

    Lensmaster

    Rudy wrote

    I use to donate to Children International, once I found out the CEO was taking almost half a million dollar salary a year, I did cancel, help is needed everywhere, even in USA, so.. I am helping now from single mothers to elderly people abandoned in nursing homes, and yes I feel better.
    Rudy H, California.

    Reply Posted September 05, 2008

    view all 19 comments

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