Which nonprofit compensation data sources should you use?
Use more than one source when the decision requires it, and choose each source based on the job, labor market, geography, organization size, data age, and methodology. Nonprofit compensation reports and Form 990 data can be useful for peer context, while published salary surveys and broader labor-market data may be more appropriate for roles that compete across sectors.
No single database is automatically the right answer for every nonprofit job. The defensible approach is to document why the source and comparators fit the specific compensation decision.
For a defined benchmarking engagement, see JER HR Group’s nonprofit compensation studies. For broader advisory support, see nonprofit compensation consulting.
Nonprofit compensation data is useful only when it is relevant to the decision being made. A report can contain thousands of organizations and still be a weak benchmark for a particular role if the job match, geography, organization size, compensation definition, or data period does not fit.
This guide explains the main sources nonprofit HR leaders, executives, and boards can use, what each source can and cannot tell you, and how to build a defensible peer group without treating one database as a universal market answer.
Quick answer: the main nonprofit compensation data sources
- Nonprofit compensation reports: useful for sector-specific leadership and peer context.
- IRS Form 990 data: useful for reviewing reported compensation at tax-exempt organizations, especially executive and governance comparisons.
- Published salary surveys: useful when the survey contains strong job matches and relevant labor markets.
- Cross-industry market data: useful for jobs that compete with employers outside the nonprofit sector.
- Custom salary surveys: useful when published sources do not adequately cover specialized jobs or a defined peer market.
- Internal compensation data: necessary for evaluating range placement, compression, employee relationships, and implementation impact.
How to evaluate a nonprofit compensation report
Before using any report, document the population behind it. At minimum, review the roles covered, organization types, geography, organization size or budget, effective date, compensation elements, sample size, and methodology.
A large sample does not correct a weak job match. Job content and responsibility should take precedence over title alone.
1. Candid nonprofit compensation data
Source note: The 2026 Candid Nonprofit Compensation Report uses fiscal-year 2024 IRS Form 990 and 990-EZ data and reports compensation for 14 executive leadership positions across nonprofit populations. Use that breadth as context, then test whether the specific role and peer group fit the decision.
Candid’s nonprofit compensation reporting can provide useful leadership-pay context by role and organizational characteristics. It can help organizations understand how reported compensation varies across nonprofit populations and identify possible peer organizations for further review.
Its strongest use is context and peer research. It should not automatically determine an individual executive’s pay because the relevance of each comparator still depends on role scope, organization size and complexity, geography, compensation elements, and data age.
2. IRS Form 990 compensation data
Primary-source reference: The IRS explains the compensation information reported through Form 990 Part VII and Schedule J. Review the reporting definitions before comparing organizations or interpreting a compensation figure.
Form 990 is an important public source for compensation reported by many tax-exempt organizations. Part VII and, when applicable, Schedule J contain compensation information for specified officers, directors, trustees, key employees, and highly compensated employees.
Form 990 data can support executive-compensation research and governance documentation, but it has limitations. Reported information is historical, organizations may have different fiscal years, compensation definitions require careful interpretation, and organizations with similar names or missions may differ materially in scale and complexity.
For executive-pay decisions, review JER HR Group’s executive compensation consulting and nonprofit board governance consulting.
3. Published nonprofit salary surveys
Published nonprofit salary surveys can be valuable when they contain the right jobs and relevant participating organizations. Review the actual job descriptions or benchmark definitions rather than matching on title alone.
Check whether the survey reflects the geographic market, organization size, function, level, and compensation elements relevant to the role. Also verify the effective date and any aging methodology used to bring older data forward.
4. Cross-industry compensation surveys
Not every nonprofit job competes only with other nonprofits. Finance, technology, HR, clinical, operations, legal, and other specialized roles may recruit from broader labor markets.
For those jobs, cross-industry compensation data may be more relevant than a nonprofit-only source. The appropriate market should follow the talent market for the role, not tax status alone.
5. Custom salary surveys and defined peer studies
When published data is too broad, too old, or does not contain reliable job matches, a custom survey can collect information from a defined peer group. This can be particularly useful for specialized positions, unusual organizational models, regional markets, or roles whose responsibilities differ from standard survey benchmarks.
JER HR Group’s salary survey consulting supports organizations that need a more specific market dataset.
Nonprofit compensation data sources compared
| Source | Best use | Main limitation to check |
|---|---|---|
| Nonprofit compensation report | Sector and executive-pay context | Role, organization-size, geography and data-period fit |
| IRS Form 990 / Schedule J | Reported executive compensation and governance research | Reporting lag, compensation definitions and peer comparability |
| Published salary survey | Recurring market benchmarks for matched roles | Participant mix, job definitions, sample size and effective date |
| Cross-industry market data | Roles that recruit beyond the nonprofit sector | Whether the external labor market actually fits the role |
| Custom salary survey | Specialized roles or a defined peer market | Participant coverage, confidentiality, methodology and response quality |
| Internal compensation data | Compression, range placement, internal relationships and implementation | Internal data does not replace external market evidence |
How to build a defensible nonprofit peer group
A peer group should be selected because the organizations are relevant to the compensation decision, not because their names are familiar. Depending on the role, useful factors can include:
- Job responsibilities and organizational level
- Mission or sector where relevant
- Operating budget or revenue
- Organization complexity and workforce size
- Geographic labor market
- Population or constituency served
- Program and operating scope
- Sources from which the organization recruits comparable talent
Different roles may require different peer markets. A local program role and a national finance executive should not automatically use the same comparator set.
What Form 990 data cannot tell you by itself
Public filings do not explain every factor behind a compensation decision. They may not show the complete job scope, current performance expectations, recruiting market, internal salary structure, current-year changes, or why a board selected a particular peer group.
Use public data as evidence, not as an automatic salary recommendation.
When public nonprofit compensation data is not enough
Additional analysis is usually needed when jobs have materially changed, published matches are weak, multiple labor markets apply, internal compression is a concern, salary ranges need redesign, or the board needs documented executive-pay comparability evidence.
A formal nonprofit compensation study can connect external market data with job matching, internal relationships, salary structures, and decision-ready recommendations.
Nonprofit compensation data-source checklist
- ☐ Is the job match based on responsibilities rather than title alone?
- ☐ Is the data recent enough for the decision?
- ☐ Is the geography relevant?
- ☐ Are organization size and complexity considered where appropriate?
- ☐ Is the compensation definition clear?
- ☐ Is the sample sufficiently relevant?
- ☐ Are outliers and limitations understood?
- ☐ Are multiple sources needed?
- ☐ Is internal compensation data being reviewed alongside market data?
- ☐ Is the rationale for selected comparators documented?
Frequently asked questions
What is the best source for nonprofit salary data?
There is no universal best source. The right source depends on the job, labor market, geography, organization context, data age, and decision being made. Many organizations use multiple appropriate sources.
Can nonprofits use Form 990 data for salary benchmarking?
Form 990 data can provide useful reported-compensation and peer context, particularly for executive roles, but it should be evaluated for relevance and data age and should not be treated as a complete market-pricing method by itself.
Should nonprofits benchmark only against other nonprofits?
No. Some roles compete primarily in nonprofit markets, while others compete across nonprofit, public, and private-sector employers. The relevant labor market should reflect where comparable talent is recruited.
How many peer organizations should a nonprofit use?
The quality and relevance of comparators matter more than selecting an arbitrary number. The peer group should be large enough to provide useful evidence while remaining relevant to the role and organization.
When should a nonprofit commission a custom salary survey?
A custom survey may be appropriate when published data does not provide reliable job matches, the peer market is unusually specific, or leadership needs information from a defined group of comparable organizations.
Turn compensation data into a decision
Market data is the evidence layer. The decision still requires job analysis, internal context, compensation strategy, financial judgment, and appropriate governance.
JER HR Group helps nonprofits evaluate compensation data, benchmark roles, review salary structures, and prepare decision-ready findings for leadership and boards. Talk to a nonprofit compensation consultant about the evidence your organization needs.
This article provides general compensation and governance information and is not legal or tax advice. Organizations should use qualified advisers for organization-specific legal or tax questions.
