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Yael Eckstein: Salary, Spending and the Non-Profit Double Standard
Global Banking & Finance Review®
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“The Way We Think about Charity is Dead Wrong” by Dan Pallotta on
“The Way We Think about Charity is Dead Wrong” by Dan Pallotta on TED Talks (2013) had an immediate impact by provoking a much needed conversation about five critical components that discriminate against nonprofit organizations compared to their for-profit peers. Those five components are compensation, advertising and marketing, taking risk on new revenue ideas, time, and profit to attract risk capital.
Since charitable giving began being measured in the 1970s, it has remained stagnant at 2% of GDP. That number has never changed, and why should it? Charities are actively discouraged from marketing themselves. In fact, many donors specifically request that their donations not be used for advertising.
At the International Fellowship of Christians and Jews (IFCJ or The Fellowship), President Yael Eckstein knows that compensation is important. She seeks to elevate the organization and the mission of The Fellowship by compensating her team in a way that is commensurate with their experience and contribution.
According to Yael Eckstein: “Salary, benefits, and incentives motivate talented and experienced professionals. At The Fellowship we have worked hard to foster a meritocracy where outstanding employees can be appropriately rewarded for their contribution to our organization’s mission, while staying within reason of industry standards. Our compensation is reviewed by an outside firm and deemed “reasonable” based on similar roles, positions, and size of organization.”
A nonprofit organization is a type of entity that operates for a charitable purpose and does not distribute profits to shareholders or owners. Instead, any surplus funds are reinvested to further its mission.
Compensation refers to the total monetary and non-monetary benefits provided to employees in exchange for their work. This includes salaries, bonuses, benefits, and other perks.
Fundraising is the process of collecting money or resources for a specific cause, typically for nonprofit organizations. It involves various strategies to encourage donations from individuals, businesses, and foundations.
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