![]() For organizations that large, high salaries did not appear to be associated with worse performance.Ĭharities that substantially underpay their employees run into trouble as well. The correlation held for charities with operating costs up to $20 million. They also provide lower-quality communications to donors about how money is being spent and the results of their work. This results in them receiving lower ratings from Charity Intelligence. The analysis found that charities paying their highest-paid worker at least $100,00 more than the average top employee at organizations of a similar size are both less efficient and less transparent.Ĭharities that overpay their top employees spend more on fundraising and administration, devoting a smaller percentage of their money to accomplishing their charitable goals. Maclean’s looked at data from almost 600 of Canada’s best-known charities with revenues over $2 million. “I think you’ve got something there,” she said. “Too many smart people have said, ‘Salaries matter.’” But Bahen said she was re-thinking that stance in light of the Maclean’s analysis. ![]() Last year, Charity Intelligence put out a report calling charity salaries “a useless metric in intelligent giving,” saying the organization had been unable to find any link between compensation and performance. But intriguingly, so is extremely low compensation. Charities that pay their highest-paid employee much more or much less than their peers of a similar size perform worse on a variety of financial and transparency metrics. In fact, a Maclean’s analysis of charity data suggests extremely high compensation is linked to poor results for charities. ![]() “There definitely seems to be runaway compensation at some charities.” “You get this cycle of out-of-control cost escalation with nothing to do with performance,” Bahen said. But Kate Bahen, managing director of the research organization Charity Intelligence, said this level of pay is an example of how charity executive salaries are spiralling upward. Under Mourinho’s leadership, the hospital foundation’s total revenue has since increased to $13 million in 2018 and the organization argues his salary is competitive with other similar organizations in the Toronto area. Exact salaries aren’t reported, but Mourinho’s salary accounted for at least 4.7 per cent of the charity’s total revenue of $7.7 million. Of the 86,000 charities across the country, only 221 had employees making $350,000 or more. Just 553 people in total earned that level of compensation-and foundation president Mitze Mourinho was one of them. Out of those active today, Toronto’s Michael Garron Hospital Foundation is the smallest to pay someone that much money. Eighteen hospital fundraising charities across Canada had at least one employee earning $350,000 or more in 2016.
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