By Ruth Masterson, Exponent Philanthropy 

There is a disparity between what men and women earn in philanthropy, at least as indicated by responses to our member survey in the area of foundation CEO/executive director salaries.

According to our most recent report, women who are CEOs or executive directors of small-staffed foundations earn, on average, 87¢ for every $1 paid to men in 2014:

• 39% of foundations are male led, with an average salary of $143,589
• 61% of foundations are female led, with an average salary of $125,092

In the same year, male CEOs received 6% pay raises, on average, while women received 5% pay raises.

The discrepancies in salaries are not due to the CEO/executive director’s years of experience, and they are not due to the foundation’s asset size, with one exception. When the foundation’s assets are $50-99.9 million, women’s average earnings jump to $1.09 for every $1 paid to men. In all other categories by asset size or experience level, the ratio ranges from 81¢ to 92¢ per $1.

You can find a deeper discussion, along with CEO/executive director median salaries by gender since 2004, in our 2016 Foundation Operations and Management Report. (Updated data collected this summer will be available at the beginning of 2017.)

How Does the Philanthropic Sector Compare to Others?

Women are almost half the workforce, holding more college and graduate degrees than men. Yet, on average, women earn an average of only 79¢ for every dollar earned by men.

In studies that look at 119 occupations in the United States, women earned 95% or less than men in 108 occupations. In only 2 occupations did men earn 95% or less than women (‘data entry keyers’ and ‘wholesale and retail buyers, except farm products’). Women earn a comparable salary to men in only 3 occupations.

The good news is that, at 87¢ per $1, we are above average. On the other hand, we have not yet achieved equality in our field.

What Can You Do?

Foundation boards want to invest in talent and to compensate appropriately; most foundation’s missions are, after all, related to improving fairness or opportunity.

At first glance, though, it may seem tricky for any one small-staffed foundation to create pay equity. There are still steps you can take, whether a board member or staff person, and even if the foundation only has one staff person.

• Awareness is a critical first step to change. Learn more about the value of women on staff and the critical role women play on high-performing teams. These and similar articles can be shared among your board members, whether for board discussion or to elevate individual awareness.
• Look to benchmark reports to find the median value paid to a similarly qualified person doing similar work in a similar position. Exponent Philanthropy, the Council on Foundations, some regional associations and community foundations, and other entities survey and publish relevant salary data. It makes sense to make adjustments based on factors such as region or years of experience.
• If you are a woman, know your value. Do your own research on what comparably experienced individuals earn for similar work. One colleague in the field says she always makes it a practice to ask for a little bit more than she is initially offered, and this has worked well for her. If you find you are earning less than the median, bring the data to your board or manager and let the data speak for you.

The exciting news is that, although our field isn’t where it ought to be, it’s already above average. This suggests a willingness to do better. Our field is also small enough that we can reasonably work to shift the needle at a faster rate than the rest of society.

Be aware, be fair, and benchmark scrupulously.

We can get this right!

Senior Program Director Ruth Masterson works closely with members to create written materials and training curricula, and answers member questions on foundation administration, governance, boards, and tax and legal topics. Prior to joining Exponent Philanthropy, Ruth served nonprofits in her work at Adler & Colvin, the Council on Foundations, Build Community Arts Center, and San Francisco BayKeeper.