Nonprofit Compensation Consulting

Your pay is on Form 990. Your board is watching. Your best people are getting offers.

JER HR Group has partnered with 400+ nonprofit organizations over 40+ years to design compensation programs that are market-competitive, IRS-defensible, and built to retain the people your mission depends on.

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The Nonprofit Compensation Challenge

You cannot pay too little. You cannot pay too much. And everyone is watching.

Nonprofits operate in a uniquely difficult compensation environment. You are competing against for-profit employers that can pay 20 to 40 percent more for the same roles. At the same time, your pay is publicly disclosed on Form 990, donor scrutiny is real, and the IRS has specific rules about what counts as reasonable compensation.

Most nonprofits manage this tension by paying below market and hoping the mission is enough. It is not enough. The people who leave first are always those with the most options.

We have spent 40+ years helping nonprofits build compensation programs that solve this: competitive enough to retain talent, documented enough to satisfy the IRS, and defensible enough for your board to approve with confidence.

01

You lose your best people first

High performers have options. When your pay structure is below market, the people who leave first are the ones with the most transferable skills: your program directors, development officers, and clinical leads. They do not quit because of the mission. They quit because someone else made them an offer that was 30 percent higher.

02

Your board faces IRS exposure

IRS Section 4958 imposes intermediate sanctions on excess benefit transactions, which can include executive pay that is not supported by documented comparability data. Without a formal compensation process, your board members are personally exposed to excise taxes. This is not hypothetical. The IRS has significantly expanded enforcement in the nonprofit sector.

03

Pay inequity quietly erodes culture

When compensation is ad hoc and built through individual negotiations over many years, internal inequities accumulate silently. People compare. They find out. When they discover that a colleague in a similar role earns significantly more, the damage to engagement, trust, and retention is immediate and lasting.

Our Services

The full range of nonprofit
compensation consulting.

Every service we offer is built specifically for the nonprofit context: IRS compliance, donor accountability, board governance, and the market realities of competing for talent on a mission budget.

01

Staff Compensation Design

Data-driven pay structures designed to attract top talent, ensure equity, and align with your organization's goals across every sector and employee level. Full salary band and job grade design for your entire staff, benchmarked against nonprofit sector peers rather than private-sector averages. Built for your budget, your culture, and the market where you actually compete for talent.

  • Nonprofit peer group benchmarking
  • Salary bands and job grade structure
  • Internal equity analysis across departments
  • Pay range implementation and administration guidance
02

Executive Compensation

We design market-competitive executive pay programs specifically for nonprofit organizations. Each program is IRS-defensible, board-approved, and supported by comparability documentation that helps protect your board from intermediate sanctions risk.

  • IRS Section 4958 intermediate sanctions review
  • Comparability data documentation
  • Form 990 compensation disclosure support
  • Total compensation valuation for executives
03

Compensation Philosophy and Strategy

A formal, board-approved compensation philosophy defines your market position, pay mix, and the principles that govern compensation decisions across your organization. It is the foundation on which everything else is built.

  • Market position and pay philosophy development
  • Total rewards strategy aligned to mission
  • Board presentation and approval support
  • Communication plan for staff and leadership
04

Board Governance and Compliance

We help nonprofit boards define a compensation governance model that is true to their mission and compliant with IRS and state regulations, including state-specific nonprofit compensation requirements.

  • Compensation committee structure and charter
  • IRS Section 4958 compliance
  • Governance documentation and policy development
  • Board training on compensation oversight responsibilities
05

Pay Equity Analysis

Structured pay equity analysis identifies gaps by gender, race, and other protected characteristics across your workforce, with documentation and a remediation plan that your board and HR team can act on.

  • Gender and racial pay gap analysis
  • Evaluation methodology and custom criteria
  • Remediation cost modeling and phasing
  • Compliance documentation for board review
06

Total Rewards and Benefits Strategy

When you cannot match for-profit salaries dollar for dollar, your total rewards strategy becomes your most powerful retention tool. We help you identify, value, and communicate the full picture of what you offer, so your people understand the real value of working for your organization.

  • Total compensation valuation beyond base salary
  • Benefits benchmarking against nonprofit peers
  • Non-cash rewards identification and communication
  • Retention risk analysis by role and department
How We Work

40+ years. 400+ nonprofits.
Every sector of the social economy.

Healthcare Nonprofits

Healthcare nonprofits face the most acute compensation pressure in the sector, competing directly against for-profit hospital systems and healthcare companies for clinical, administrative, and executive talent. We have worked with hospitals, community health centers, and health-focused nonprofits to build pay structures that close the gap and are documented well enough for board approval and IRS compliance.

Talk to a consultant about healthcare nonprofit compensation ➜
  • Clinical and non-clinical staff compensation benchmarking against nonprofit hospital peers
  • Executive compensation for hospital CEOs, CMOs, and CFOs, with full IRS comparability documentation
  • Pay equity analysis across clinical specialties and administrative roles
  • Total rewards strategy that competes with for-profit healthcare employers
  • Compensation governance structure for hospital boards and compensation committees

Educational Nonprofits

Charter schools, private schools, educational nonprofits, and university foundations face a unique challenge: teacher and program staff compensation is often constrained by sector norms, while administrative and leadership pay must compete with the broader education market. We help educational organizations build structures that are internally equitable, externally competitive, and understandable to parents, boards, and staff alike.

Talk to a consultant about education nonprofit compensation ➜
  • Teacher and program staff salary benchmarking against comparable educational institutions
  • Administrative and leadership compensation aligned to market
  • Pay equity analysis across instructional and non-instructional roles
  • Salary schedule design and step-based progression frameworks
  • Board governance support for compensation committee oversight

Social Services Organizations

Social services nonprofits, including family services, housing organizations, mental health agencies, and workforce development organizations, typically operate with the tightest budget constraints and the highest staff turnover in the sector. The connection between below-market pay and service quality is direct. We help social services organizations make the compensation case to funders and boards and build structures that reduce turnover in the roles that matter most.

Talk to a consultant about social services compensation ➜
  • Social services sector peer benchmarking for direct care, program, and administrative roles
  • Executive director and leadership pay, IRS-defensible and board-approved
  • Turnover cost analysis tied to compensation gap identification
  • Total rewards strategy that leverages non-cash benefits and mission value
  • Funder-ready compensation documentation and narrative support

Foundations and Grantmakers

Private and community foundations face significant public scrutiny on compensation, particularly for program officers, executive directors, and trustees. Pay decisions are visible, scrutinized by peer foundations, and increasingly important for recruiting talent away from the corporate sector. We help foundations build compensation structures that attract the caliber of talent their work requires while maintaining the transparency their donors and stakeholders expect.

Talk to a consultant about foundation compensation ➜
  • Foundation sector peer benchmarking for program officers and executive staff
  • IRS Form 990 compensation disclosure review and preparation
  • Trustee and board compensation governance documentation
  • Total compensation valuation for foundation leadership
  • Pay transparency strategy and stakeholder communication support

NGOs and International Organizations

Non-governmental organizations operating domestically or internationally face compensation complexity that most consultants are not equipped to handle: multi-location pay equity, expatriate compensation, and the challenge of aligning pay across vastly different local markets while maintaining internal fairness. We have worked with international NGOs to build frameworks that hold up across geographies and governance structures.

Talk to a consultant about NGO compensation ➜
  • Multi-location compensation framework design and alignment
  • Headquarters and field staff pay equity analysis
  • Executive compensation for NGO leadership, IRS- and governance-compliant
  • Total rewards strategy for mission-driven talent in competitive markets
  • Compensation governance documentation for international board structures

Membership Organizations and Associations

Trade associations, professional societies, and membership organizations often operate like small companies, but nonprofit tax status, member accountability, and board governance structures add complexity to compensation decisions. We help membership organizations design pay structures that attract professional talent from the private sector while satisfying the oversight expectations of their member boards.

Talk to a consultant about membership organization compensation ➜
  • Association and trade organization peer benchmarking
  • Executive director and staff compensation design
  • IRS compliance review and Form 990 preparation support
  • Member board compensation committee governance support
  • Pay equity analysis and documentation for member accountability
Our Process

Four steps to a compensation
program that holds up.

Every nonprofit compensation engagement follows the same disciplined process, adapted to your sector, size, and specific situation. The process is led by senior consultants from start to finish.

01

Assess: Where You Stand Today

We begin with a structured assessment of your current compensation structure, reviewing all roles, current pay levels, internal equity, and existing documentation. This tells us exactly what is working, what is broken, and what regulatory or governance gaps need to be addressed before we design anything new.

  • Current pay structure review and internal equity analysis
  • Job description audit and role mapping
  • IRS compliance and Form 990 exposure review
  • Board governance assessment for compensation oversight
02

Market Analysis: What Your Peers Pay

We conduct nonprofit-specific peer group benchmarking using validated compensation data from comparable organizations in your sector, geography, and size range. We do not use private-sector data to benchmark nonprofit pay because the comparisons are not valid. The IRS specifically requires nonprofit-to-nonprofit comparability for executive compensation purposes.

  • Nonprofit peer group identification and selection
  • Validated market data from nonprofit compensation databases
  • Pay gap analysis by role, level, and department
  • IRS-compliant comparability data documentation
03

Pay Framework Design: Building the Structure

We design the salary ranges, job grades, and pay bands that form the structure of your compensation program. The framework is built for your specific organization, not a generic template applied to your headcount. We also develop the compensation philosophy and governance documentation your board needs to approve and own the new structure.

  • Salary ranges, job grades, and internal alignment models
  • Compensation philosophy statement and board presentation
  • Total rewards documentation and valuation
  • IRS Section 4958 compliance documentation for executive pay
04

Implementation: Getting It Adopted

We stay through implementation. We help you communicate the new structure to your staff, prepare your managers for difficult conversations, brief your board, and train your HR team to administer the program going forward. The engagement does not end when the document is delivered. It ends when the program is working.

  • Employee and manager communication plan
  • Board presentation and approval support
  • HR team training on ongoing administration
  • Implementation phasing and cost modeling
Technology Advantage

IRS documentation
and board reporting
without the manual work.

Once your compensation framework is designed, CompBldr gives your HR team the platform to maintain it by running pay equity audits, tracking market drift, modeling budget scenarios, and producing the board-ready documentation your governance process requires.

CompBldr, a Trainery company

Built for HR teams who need to stay compliant between consulting engagements.

01

IRS comparability documentation on demand

Generate the market comparability reports your board needs for IRS Section 4958 compliance at any time, not just when a consulting engagement is active.

02

Pay equity audits without waiting for a consultant

Run equity analysis across your workforce at any point in the year. Identify emerging gaps before they become governance issues or retention problems.

03

Board-ready compensation reports

Produce structured compensation reports formatted for board and compensation committee review, with market positioning data, equity analysis, and budget impact clearly presented.

04

Budget and merit cycle planning

Model merit increase cycles, new hire placements, and market adjustments against your budget in one place, so compensation decisions are made with data, not estimates.

Resources

Explore insights and resources

More Webinars Are on the Way

We're working on our next lineup of webinars. Stay tuned for new sessions and registration details coming soon.
Webinars

Compensation Begins Before Pay

Webinars

The Leader’s Coaching Mirror

Webinars

The Missing Link Between People, Pay, and Performance: Why Job Architecture Matters More Than Ever

Webinars

From Content to Capability: Using AI to Create, Curate, Personalize, and Deploy Learning at Scale

Webinars

Positive Psychology for Teams

Webinars

The Playbook for Turning Reviews into Action, Growth, and Accountability

Webinars

The HR Horizon: What HR Needs to Know for 2027

Get in Touch

40+ years of nonprofit compensation expertise. One phone call away.

  • We have partnered with 400+ nonprofit organizations across healthcare, education, social services, foundations, NGOs, and membership associations. We understand your sector, not just compensation in general.
  • Every engagement is led by a senior SHRM-SCP- or SPHR-certified consultant with direct nonprofit experience. The person you meet first is the person who delivers the work.
  • We provide IRS-defensible comparability documentation, board-ready compensation reports, and full implementation support because a document sitting in a drawer is not a compensation program.
  • No long-term contracts required. Engage for a single pay equity review or build an ongoing advisory relationship. We work the way your organization needs us to.
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