Silicon Valley is one of the nation’s most expensive locales and home to dozens of nonprofit organizations, which need to keep up with costs of living.
Last year, San José Spotlight examined the most recent Form 990 public tax filings for some of Silicon Valley’s biggest direct service nonprofits. After receiving feedback from readers, we reviewed dozens more nonprofits headquartered locally.
This list includes a broader group of nonprofits headquartered in Santa Clara County and shows the 15 highest executive salaries. Some of these nonprofits provide services beyond the county.
Pacific Clinics, which merged with Uplift Family Services, had the highest paid top executive, Darrell Evora, who received a salary of $635,035 in fiscal year 2021-22. The nonprofit operates clinics across California and runs on a $147 million budget.
Experts emphasized the importance of providing fair and competitive wages to nonprofit employees, which can be over scrutinized.
“It goes to this notion that we all have in the back of our heads, that when you’re doing nonprofit work, you shouldn’t be paid for that,” CalNonprofit CEO Geoff Green previously told San José Spotlight. “That’s a really toxic, dangerous notion in my opinion.”
In Santa Clara County, the nonprofit sector plays a critical role in addressing social, health, and economic issues. From providing services to underprivileged communities to advocating for environmental sustainability, nonprofit organizations are a backbone of the local economy. However, like in any sector, the compensation of top executives often sparks debate, especially in service-focused organizations that rely heavily on donations, grants, and government funding.
In this article, we take a closer look at the highest-paid service nonprofit executives in Santa Clara County. These leaders are guiding organizations that work tirelessly to support marginalized communities, but they also hold significant salaries that have raised questions about the balance between executive compensation and the mission of the nonprofit.
Who Are the Highest-Paid Nonprofit Executives?
The highest-paid nonprofit executives in Santa Clara County are those at the helm of some of the largest organizations in the region.
These individuals oversee large budgets, manage significant staff teams, and ensure the long-term sustainability of their organizations. Their salaries can often be on par with or exceed those in the private sector, especially in areas where nonprofits manage millions in funding.
Factors Influencing Nonprofit Executive Compensation
Nonprofit executive compensation is influenced by a variety of factors, some of which overlap with the private sector. Here are a few key considerations:
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- Size and Budget of the Organization: The larger the nonprofit, the more complex the job of its executive. Leaders of organizations with annual budgets in the tens of millions are often compensated at levels comparable to executives in private companies, reflecting the significant responsibilities of overseeing large operations, managing donors, and navigating the complex legal and financial landscape.
- Mission and Impact: Many nonprofits focus on critical social services, such as healthcare, homelessness, education, and job training. The more visible and influential the mission, the more competitive the compensation may be in order to attract and retain experienced leaders. Additionally, nonprofits that are highly effective in their missions often receive larger funding from government sources, private donors, and foundations, which contributes to higher salaries.
- Funding and Fundraising: Nonprofits that are able to secure large amounts of funding or engage in substantial fundraising activities may be in a position to offer competitive salaries. Successful executives in this arena may receive bonuses tied to fundraising goals or meeting specific financial targets, leading to higher compensation.
- Market Comparisons: Like any sector, nonprofit executive salaries are influenced by the wider market. Many organizations look at salary data from similar-sized nonprofits, both within the region and nationwide, to ensure they remain competitive and can attract top talent. In areas like Santa Clara County, where the cost of living is high, compensation may be adjusted accordingly.
Public Scrutiny: How Much is Too Much?
While high executive salaries in the nonprofit sector may seem reasonable given the complexity of their roles, it often generates public debate. Many question whether the funds used to pay these executives could be better spent directly on programs or services for the communities these nonprofits are meant to serve.
For nonprofits that rely on public donations, tax-exempt status, and government funding, there can be pressure to ensure that executive pay does not overshadow the organization’s primary mission. In some cases, boards of directors must strike a balance between attracting top talent and ensuring that a significant portion of the organization’s budget is allocated toward its charitable services.
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Nonprofit leaders often argue that competitive salaries are necessary to attract and retain talented individuals who have the experience and skills needed to lead complex organizations. Executive compensation packages can also reflect the hard work and responsibility involved in managing large teams, meeting fundraising goals, and navigating challenges such as shifting government policies and increasing demand for services.
Many organizations also emphasize that they are committed to transparency when it comes to their financials. Executives are required to disclose their salaries in annual IRS Form 990 filings, which are publicly available. This allows the public and donors to better understand how resources are allocated within the nonprofit.
Conclusion: A Delicate Balance
As Santa Clara County’s nonprofit sector continues to grow and evolve, the question of executive compensation remains an important topic of conversation. While high-paying nonprofit roles can spark debate, they also highlight the complex and critical work these leaders do to improve the lives of vulnerable communities in the county.
The key is balancing competitive pay with mission-driven service. When done right, well-compensated leaders can have a significant positive impact on the nonprofit sector—helping organizations grow, fundraise, and ultimately deliver on their important social missions. As Santa Clara County’s nonprofits continue to thrive, understanding the intricacies of executive compensation will help residents and donors navigate how these organizations best serve their communities.
