Monday, November 09, 2009

Psychic benefits? Women's work? Any excuse.

Someone said to me this morning, men won't take jobs in human services because they can't support their families. The women have spouses or partners, so it's ok to pay so little.

Wrong. Wrong. Wrong.

To many woman working in nonprofits are single family households and are one or two paychecks away from homelessness themselves. They frequently work two, sometimes three jobs.

They are dedicated people who have spent as many dollars and years on their degrees.

They deserve better.

in reference to:

"In 2003 BusinessWeek surveyed the compensation packages of MBAs 10 years out of b-school. The median compensation package with bonus was $400,000. By contrast, the average 2004 salary of the CEO of a $5 million-plus health charity was $232,000 and of a hunger charity, $84,000. There's no way you're going to get people with a $400,000 annual pay package to take a $316,000 annual pay cut on the basis of the psychic benefits that await them. Instead, consider the enormous psychic benefits that people in the for-profit world enjoy as philanthropists. Think about this: It's cheaper for the MBA to donate $100,000 a year to the hunger charity than to go work for it. She gets $50,000 in federal and state tax savings, which leaves her $266,000 ahead of the game. On top of that, she gets a seat on the board of the hunger charity; indeed, probably chairs the board. She now gets to supervise the poor bastard who's running the hunger charity. She gets to dictate his strategy and how he goes about executing it. And if that weren't enough, the MBA is now elevated to the status of respected philanthropist in the community (while the hunger charity CEO gets demonized at the annual board meeting for wanting a $10,000 salary increase — "shame on you, that money could be going to the needy," they tell him). And, with a $100,000 annual contribution to the hunger charity, at some point the "philanthropist" gets her name on the top of the charity's headquarters. And maybe she loves her for-profit job on top it. Sounds like an awful lot of psychic benefit to me. Don't fall for this Puritan self-sacrificial psychobabble. It's not the poor who are asking you to work for less. It's the donating public, including many a wealthy donor. They're asking you to end poverty and every other great social problem and to do it for them at a discount. And they're exploiting the images of the poor to get you to agree. The fact that someone makes a one-time sacrificial gift doesn't mean you're obligated to make a lifetime sacrificial career choice. If you do the math and the psychic benefit comes up lacking for you, then ask the people who want you to make the world a better place for another kind of benefit that begins with a "p." Pay."
- The "Psychic Benefits" of Nonprofit Work Are Overrated - Dan Pallotta - (view on Google Sidewiki)

Monday, November 02, 2009

What about differences within nonprofit sectors?

in reference to: Amaze Your Friends with these Nonprofit Factoids | Blue Avocado (view on Google Sidewiki)

I'd like to see these figures broken out by sectors within the 501 (c)3 category, as well. If, as you mention below, you take out the hospitals and universities, I believe the differences would increase even more dramatically.

Why? The impact of unionization and/or more men working in hospitals and and universities?

Thanks, Rick Cohen at Blue Avocado, for pulling together the data.