Goodwill CEO compensation varies significantly across its many autonomous organizations, generally ranging from $300,000 to $800,000 annually, according to research by HOW.EDU.VN. Examining individual IRS Form 990 filings of specific Goodwill agencies provides insights into their revenues, expenses, assets, and executive pay.
Understanding executive compensation in non-profit organizations like Goodwill requires a comprehensive review. Many factors influence these figures, including the organization’s size, revenue, and geographic location. Keep reading for an in-depth look at the salaries of Goodwill CEOs and key executives, offering clarity on non-profit executive pay and financial stewardship.
1. What Factors Determine Goodwill CEO Salaries?
Goodwill CEO compensation is determined by several key factors, including the organization’s size, revenue, and location. These elements affect the complexity of the CEO’s role, influencing their compensation package.
1.1. Size and Revenue
Larger Goodwill organizations with higher revenues typically offer more competitive compensation packages to attract and retain experienced leaders. The scale of operations directly correlates with the responsibilities of the CEO, who must manage more extensive budgets, larger teams, and broader community impact initiatives. A CEO at a larger Goodwill will oversee more retail stores, donation centers, and employment programs, requiring a higher level of strategic oversight and management expertise. The higher compensation reflects the demand for proven leadership capable of driving growth and maintaining operational efficiency in these larger entities.
1.2. Geographic Location
The cost of living in the area where the Goodwill operates also plays a crucial role. Organizations located in metropolitan areas with higher living costs, such as Los Angeles or New York, often need to offer higher salaries to offset these expenses. This ensures that the CEO and other key executives can afford to live comfortably and focus on their responsibilities without financial strain. Moreover, the competitive job market in these regions may necessitate higher pay to attract qualified candidates who might otherwise seek opportunities in the for-profit sector.
1.3. Scope of Responsibilities
The CEO’s responsibilities extend beyond typical executive functions, including community engagement, fundraising, and strategic planning. In addition to managing day-to-day operations, Goodwill CEOs are often the face of the organization, representing it in public forums and cultivating relationships with donors, community leaders, and government officials. They must also develop and implement long-term strategies to further the organization’s mission of providing job training, employment placement services, and other community-based programs. The breadth of these responsibilities justifies competitive compensation to secure leaders who can effectively navigate these multifaceted roles.
1.4. Non-Profit vs. For-Profit Standards
While Goodwill is a non-profit, its CEO compensation is often benchmarked against similar roles in the for-profit sector to ensure competitive pay. This is especially true for larger Goodwill organizations that operate with business models comparable to retail or service industries. By aligning compensation with market rates, Goodwill can attract talented executives who bring business acumen and strategic vision to the organization. This approach helps ensure that Goodwill operates efficiently, maximizes its impact, and remains sustainable in the long term.
2. What is the Typical Salary Range for Goodwill CEOs?
The typical salary range for Goodwill CEOs varies significantly, generally falling between $300,000 and $800,000 annually, depending on the organization’s size and revenue. Several factors influence this range, as detailed previously.
2.1. Examples of CEO Salaries Across Different Locations
To illustrate the variability in CEO compensation, here are some examples from different Goodwill organizations across the United States:
| Goodwill Organization | Location | CEO Salary |
|---|---|---|
| Goodwill Industries of South Florida | Miami, FL | $832,711 |
| Goodwill Industries of Central Arizona | Phoenix, AZ | $712,206 |
| Goodwill of North Georgia | Decatur, GA | $707,108 |
| Goodwill Industries of Houston | Houston, TX | $672,557 |
| Goodwill Industries of the Columbia Willamette | Portland, OR | $669,630 (Emeritus) / $501,167 (Current CEO) |
| Goodwill of Central and Southern Indiana | Indianapolis, IN | $506,058 |
| Mers Missouri Goodwill Industries | St. Louis, MO | $502,943 |
| Goodwill Industries International | Rockville, MD | $469,247 |
| Goodwill Industries of Southern California | Los Angeles, CA | $458,708 |
| Goodwill of Colorado | Colorado Springs, CO | $421,936 |
| Evergreen Goodwill of NW Washington | Seattle, WA | $358,807 |
| Goodwill Industries of North Central Wisconsin | Menasha, WI | $278,716 |
These examples highlight that CEOs in larger metropolitan areas or at organizations with more extensive operations tend to earn higher salaries.
2.2. How CEO Salaries Compare to Other Non-Profit Executives
The compensation of Goodwill CEOs is generally competitive with that of executives in other large non-profit organizations. Factors such as the scope of the organization’s mission, the complexity of its operations, and the need to attract skilled leadership contribute to these salary levels. While some may question high non-profit executive pay, it is essential to consider the skills and experience required to manage these complex organizations effectively. Non-profits often need to offer competitive salaries to attract talent from the private sector, ensuring they have the expertise to drive growth and achieve their mission.
2.3. Considerations for Determining Fair Compensation
Determining fair compensation for a Goodwill CEO involves several considerations:
- Benchmarking: Comparing the CEO’s salary to those of executives in similar non-profits and for-profit companies.
- Performance Metrics: Evaluating the CEO’s performance against specific goals, such as revenue growth, program expansion, and community impact.
- Transparency: Ensuring that the compensation-setting process is transparent and that stakeholders have access to relevant information.
- Independent Review: Engaging an independent consultant or compensation committee to review and approve the CEO’s compensation package.
By carefully considering these factors, Goodwill organizations can ensure that their CEO compensation is fair, reasonable, and aligned with their mission and financial health.
3. What Are the Responsibilities of a Goodwill CEO?
The CEO of a Goodwill organization has wide-ranging responsibilities that extend beyond traditional executive functions. These responsibilities encompass strategic leadership, financial management, community engagement, and operational oversight.
3.1. Strategic Leadership
The CEO is responsible for providing strategic direction to the organization, setting long-term goals, and ensuring that Goodwill’s mission and vision are upheld. This involves:
- Developing and implementing strategic plans: The CEO leads the development of strategic plans that align with Goodwill’s mission and address community needs. This includes identifying growth opportunities, evaluating market trends, and setting measurable goals.
- Ensuring mission alignment: The CEO ensures that all programs and services align with Goodwill’s mission of providing job training, employment placement, and other community-based services.
- Fostering innovation: The CEO encourages innovation and creativity within the organization, seeking new ways to improve efficiency, expand impact, and serve the community better.
3.2. Financial Management
Effective financial management is crucial for the sustainability of Goodwill. The CEO is responsible for overseeing the organization’s financial health, ensuring responsible stewardship of resources, and maximizing revenue generation. This includes:
- Budgeting and financial planning: The CEO oversees the development of annual budgets, monitors financial performance, and ensures that resources are allocated effectively.
- Revenue generation: The CEO explores various revenue streams, including retail operations, donations, grants, and contracts, to diversify funding and increase financial stability.
- Compliance and reporting: The CEO ensures that the organization complies with all financial regulations and reporting requirements, maintaining transparency and accountability to stakeholders.
3.3. Community Engagement
Goodwill’s success depends on strong relationships with the community it serves. The CEO is responsible for engaging with community leaders, donors, and other stakeholders to build support for the organization’s mission and programs. This involves:
- Building partnerships: The CEO cultivates relationships with local businesses, government agencies, and other non-profits to collaborate on initiatives that benefit the community.
- Fundraising and donor relations: The CEO leads fundraising efforts, engages with donors, and ensures that their contributions are used effectively.
- Public relations: The CEO serves as the public face of the organization, representing Goodwill at community events and communicating its mission and impact to the public.
3.4. Operational Oversight
The CEO is responsible for overseeing the day-to-day operations of Goodwill, ensuring that programs and services are delivered efficiently and effectively. This includes:
- Program management: The CEO ensures that programs are well-designed, effectively implemented, and aligned with community needs.
- Human resources: The CEO oversees human resources functions, including recruitment, training, and employee relations, ensuring a positive and productive work environment.
- Retail operations: For Goodwill organizations with retail stores, the CEO oversees the management of these stores, ensuring efficient operations, effective merchandising, and a positive customer experience.
4. How Does Goodwill Industries International Fit In?
Goodwill Industries International (GII) serves as the executive member association overseeing and supporting the 165 independent Goodwill organizations. Understanding its role clarifies the broader structure of Goodwill and how executive compensation is managed within this network.
4.1. Role of Goodwill Industries International
Goodwill Industries International provides oversight, support, expertise, and products to local agencies. It does not directly control the operations or finances of these agencies but rather serves as a resource and coordinating body. This includes:
- Setting standards: GII establishes standards for branding, program quality, and ethical practices, ensuring consistency across the Goodwill network.
- Providing training and resources: GII offers training programs, technical assistance, and other resources to help local agencies improve their operations and expand their impact.
- Advocating for Goodwill’s mission: GII advocates for policies and programs that support Goodwill’s mission at the national and international levels.
4.2. GII’s Revenue and Expenses
In 2020, Goodwill Industries International reported total revenue of $77 million, primarily from contributions, gifts, grants, government grants, and membership dues from Goodwill organizations. Expenses totaled $52 million, with the largest expenses being grants to Goodwill organizations and compensation.
4.3. Executive Compensation at GII
Executive compensation at Goodwill Industries International is structured to attract and retain qualified leaders who can effectively oversee the Goodwill network. Here are the top compensated executives at GII in 2020:
| Name | Title | Compensation |
|---|---|---|
| Steven C Preston | CEO | $469,247 |
| Brian Itzkowitz | Chief Member Advancement Officer | $375,919 |
| David Eagles | COO | $318,747 |
| Wendi Copeland | Chief Mission and Partnership Officer | $263,309 |
| Judy Branzelle | Chief Legal Officer | $253,226 |
| Marla Jackson | CFO | $249,795 |
| Andrea Affeltranger | Senior Consultant | $239,994 |
| Ryan Kuhn | Interim Chief Marketing Officer | $234,772 |
| Deborah Betsch | Chief Learning and Talent Officer | $214,761 |
| John Cunningham | Senior Consultant DGR | $200,522 |
These figures reflect the compensation for executives who oversee the entire Goodwill network, providing support and guidance to the independent local agencies.
4.4. Importance of Looking at Individual Goodwill Organizations
While GII’s executive compensation provides some insight, it is essential to examine the individual IRS Form 990 filings of specific Goodwill agencies to gain a complete picture of executive pay within the Goodwill network. Each local agency operates independently and sets its executive compensation based on its size, revenue, and local market conditions. Examining these individual filings provides a more accurate understanding of how executive compensation is structured across the Goodwill system.
5. How Do Local Goodwill Organizations Manage Executive Compensation?
Local Goodwill organizations operate autonomously, managing their finances and executive compensation independently. Understanding their processes and considerations provides a comprehensive view of executive pay within the Goodwill network.
5.1. Autonomy of Local Goodwill Organizations
Each of the 165 Goodwill organizations is a separate 501(c)(3) non-profit entity, responsible for its own operations, finances, and executive compensation decisions. This autonomy allows each organization to tailor its programs and services to meet the specific needs of its local community. It also means that executive compensation can vary significantly depending on the organization’s size, revenue, and local market conditions.
5.2. Revenue Sources and Allocation
Local Goodwill organizations generate revenue from various sources, including retail sales, donations, grants, and contracts. This revenue is used to fund programs and services, cover operating expenses, and compensate employees, including executives. The allocation of revenue is determined by each organization’s board of directors, who are responsible for ensuring that resources are used effectively to achieve the organization’s mission.
5.3. Compensation Committees and Consultants
Many local Goodwill organizations have compensation committees or engage independent consultants to help determine executive compensation. These committees or consultants review market data, assess executive performance, and make recommendations to the board of directors. This helps ensure that executive compensation is fair, reasonable, and aligned with the organization’s mission and financial health.
5.4. Transparency and Accountability
Local Goodwill organizations are required to file IRS Form 990 annually, which provides detailed information about their finances, programs, and executive compensation. This information is publicly available, allowing stakeholders to review the organization’s performance and hold it accountable for its use of resources. Transparency is crucial for maintaining public trust and ensuring that Goodwill organizations operate ethically and responsibly.
6. What are the Key Considerations When Evaluating CEO Compensation?
Evaluating CEO compensation, especially in non-profit organizations like Goodwill, requires careful consideration of various factors. These factors help ensure that compensation is fair, reasonable, and aligned with the organization’s mission and financial health.
6.1. Performance Metrics
One of the most important considerations when evaluating CEO compensation is performance. This includes both financial and programmatic performance. Financial performance metrics may include revenue growth, expense management, and fundraising success. Programmatic performance metrics may include the number of people served, the quality of services provided, and the impact on the community.
6.2. Financial Stewardship
Effective financial stewardship is crucial for the long-term sustainability of Goodwill. The CEO is responsible for ensuring that the organization’s resources are used responsibly and that it operates in a financially sustainable manner. This includes:
- Budgeting and financial planning: The CEO oversees the development of annual budgets, monitors financial performance, and ensures that resources are allocated effectively.
- Expense management: The CEO controls expenses, identifies cost-saving opportunities, and ensures that the organization operates efficiently.
- Risk management: The CEO identifies and mitigates financial risks, protecting the organization’s assets and ensuring its long-term stability.
6.3. Community Impact
Goodwill’s mission is to serve the community by providing job training, employment placement, and other community-based services. The CEO’s compensation should be evaluated in light of the organization’s impact on the community. This includes:
- Number of people served: The CEO should be evaluated on the number of people served by Goodwill’s programs and services.
- Quality of services: The CEO should ensure that Goodwill’s programs and services are high-quality and meet the needs of the community.
- Community partnerships: The CEO should build strong partnerships with local businesses, government agencies, and other non-profits to maximize Goodwill’s impact on the community.
6.4. Ethical Considerations
Ethical considerations are paramount when evaluating CEO compensation. The CEO should be compensated fairly, but not excessively, and the compensation-setting process should be transparent and accountable. This includes:
- Transparency: The compensation-setting process should be transparent, and stakeholders should have access to relevant information.
- Accountability: The CEO should be held accountable for their performance and for the organization’s financial health and community impact.
- Conflicts of interest: The CEO should avoid conflicts of interest and ensure that their personal interests do not influence their decisions.
7. Are There Criticisms of High Non-Profit Executive Pay?
Yes, there are criticisms of high non-profit executive pay, including at organizations like Goodwill. These criticisms often stem from concerns about the allocation of resources and the perception of excessive compensation in organizations that are supposed to be serving the public good.
7.1. Arguments Against High Salaries
Critics argue that high executive salaries in non-profits divert resources from programs and services that directly benefit the community. They contend that these funds could be better used to expand programs, hire more staff, or provide additional assistance to those in need. Some also argue that high salaries create a perception of greed and self-interest, undermining public trust in the non-profit sector.
7.2. Arguments in Favor of Competitive Pay
Proponents of competitive non-profit executive pay argue that it is necessary to attract and retain talented leaders who can effectively manage complex organizations. They contend that skilled executives are essential for driving growth, ensuring financial stability, and maximizing impact. They also argue that non-profits must compete with the for-profit sector for talent and that offering competitive salaries is necessary to attract qualified candidates.
7.3. Balancing Act: Mission vs. Market
Non-profit organizations face a balancing act between their mission of serving the public good and the need to offer competitive salaries to attract talented leaders. This requires careful consideration of various factors, including the organization’s size, revenue, and local market conditions. It also requires transparency and accountability in the compensation-setting process to ensure that resources are used responsibly and that stakeholders have confidence in the organization’s leadership.
8. What are Some Examples of Executive Compensation at Goodwill Organizations?
Executive compensation varies significantly across different Goodwill organizations, reflecting the diverse sizes, revenues, and locations of these autonomous entities. Examining specific examples provides a clearer understanding of the range of executive pay within the Goodwill network.
8.1. Goodwill Industries of South Florida
Based in Miami, Goodwill Industries of South Florida reported total revenue of $127 million in 2020. The President and CEO, David Landsberg, received a compensation of $832,711. The organization also paid for companion travel, indicating additional benefits beyond the base salary.
8.2. Goodwill Industries of Central Arizona
Goodwill Industries of Central Arizona, located in Phoenix, reported revenue of $186 million in 2020. The President and CEO, Timothy O’Neil, received a compensation of $712,206. This organization also had a significant number of employees (43) receiving more than $100,000 in compensation, reflecting its larger scale of operations.
8.3. Goodwill of North Georgia
Goodwill of North Georgia, based in Decatur, reported revenue of $133 million in 2020. The President and CEO, Keith T Parker, received a compensation of $707,108. The organization also had a number of vice presidents earning over $250,000, indicating a robust executive team.
8.4. Goodwill Industries of Houston
Goodwill Industries of Houston reported revenue of $142 million in 2020. The President and CEO, Steven Lufburrow, received a compensation of $672,557. The organization also paid for companion travel and health or social club dues or initiation fees, adding to the overall compensation package.
8.5. Goodwill Industries of the Columbia Willamette
Goodwill Industries of the Columbia Willamette, based in Portland, Oregon, reported revenue of $149 million in 2020. The CEO Emeritus, Michael Miller, received a compensation of $669,630, while the current President and CEO, Catherine Hannam, received $501,167. This example illustrates the potential for significant compensation even after transitioning out of the CEO role.
8.6. Goodwill of Central and South Indiana
Goodwill of Central and South Indiana, based in Indianapolis, reported revenue of $118 million in 2020. The President and CEO, Kent Kramer, received a compensation of $506,058. The organization also made gross-up payments to compensate him for FICA limits and retirement plan contribution plan limits, highlighting the complexity of executive compensation packages.
8.7. Mers Missouri Goodwill Industries
Mers Missouri Goodwill Industries, based in St. Louis, reported revenue of $147 million in 2020. The CEO, David Kutchback, received a compensation of $502,943. The organization had several executive vice presidents earning around $300,000, indicating a well-compensated leadership team.
8.8. Goodwill Industries International
Goodwill Industries International, which oversees all the Goodwill organizations, reported revenue of $77 million in 2020. The CEO, Steven C Preston, received a compensation of $469,247. While lower than some of the individual Goodwill organizations, this compensation reflects the role of GII in providing support and oversight to the network.
8.9. Goodwill Industries of Southern California
Goodwill Industries of Southern California, based in Los Angeles, reported revenue of $165 million in 2020. The President and CEO, Patrick McClenahan, received a compensation of $458,708. The organization also provided discretionary spending accounts to two employees in the form of an auto allowance, indicating additional perks for some executives.
8.10. Goodwill of Colorado
Goodwill of Colorado, based in Colorado Springs, reported revenue of $141 million in 2019. The President and CEO, Karla Grazier, received a compensation of $421,936. The organization also paid for health or social club dues or initiation fees, adding to the overall compensation package.
8.11. Evergreen Goodwill of NW Washington
Evergreen Goodwill of NW Washington, based in Seattle, reported revenue of $98 million in 2020. The President and CEO, Daryl Campbell, received a compensation of $358,807.
8.12. Goodwill Industries of North Central Wisconsin
Goodwill Industries of North Central Wisconsin, based in Menasha, reported revenue of $81 million in 2020. The President and CEO, Christian Hess, received a compensation of $278,716.
These examples demonstrate the wide range of executive compensation across the Goodwill network, influenced by factors such as organizational size, revenue, and location.
9. How Can You Get More Information About Goodwill’s Finances?
Obtaining additional information about Goodwill’s finances involves consulting publicly available documents and resources. Here’s how to access detailed financial data and gain deeper insights into the organization’s operations.
9.1. IRS Form 990 Filings
The primary source of information about Goodwill’s finances is the IRS Form 990, which all non-profit organizations in the United States are required to file annually. This form provides detailed information about the organization’s revenue, expenses, assets, liabilities, and executive compensation.
9.2. Guidestar and Other Non-Profit Databases
Websites like GuideStar offer access to IRS Form 990 filings for non-profit organizations. You can search for specific Goodwill organizations and view their financial information, including revenue, expenses, executive compensation, and program activities.
9.3. Goodwill’s Annual Reports
Many Goodwill organizations publish annual reports that provide an overview of their activities and financial performance. These reports often include information about their mission, programs, accomplishments, and financial statements. You can usually find these reports on the organization’s website.
9.4. Contacting Goodwill Directly
You can also contact Goodwill directly to request information about their finances. Most Goodwill organizations have a development or finance department that can provide you with additional details about their financial performance and how they allocate resources.
10. What Are the Key Takeaways About Goodwill CEO Compensation?
Understanding Goodwill CEO compensation requires a nuanced approach, considering various factors and recognizing the complexities of non-profit executive pay.
10.1. Variability in Compensation
Goodwill CEO compensation varies significantly across different organizations, influenced by factors such as size, revenue, location, and scope of responsibilities. This variability reflects the autonomous nature of local Goodwill organizations and the diverse challenges they face in serving their communities.
10.2. Transparency and Accountability
Transparency and accountability are essential for maintaining public trust in Goodwill and other non-profit organizations. Publicly available IRS Form 990 filings provide detailed information about their finances, programs, and executive compensation, allowing stakeholders to review their performance and hold them accountable for their use of resources.
10.3. Balancing Mission and Market
Non-profit organizations like Goodwill must balance their mission of serving the public good with the need to offer competitive salaries to attract talented leaders. This requires careful consideration of various factors and a commitment to transparency and accountability in the compensation-setting process.
10.4. Importance of Individual Assessment
Evaluating CEO compensation requires a nuanced approach that considers both financial and programmatic performance, as well as ethical considerations. It is essential to assess each organization individually, taking into account its unique circumstances and challenges.
Understanding the compensation structures for Goodwill CEOs is a key step in assessing the effectiveness and management of these widespread organizations.
FAQ About Goodwill CEO Compensation
1. What is the average salary for a Goodwill CEO?
The average salary for a Goodwill CEO typically ranges from $300,000 to $800,000, depending on the size and revenue of the organization.
2. How is CEO compensation determined at Goodwill?
CEO compensation is determined by the board of directors, often with the assistance of a compensation committee or independent consultant. Factors considered include the organization’s size, revenue, location, and the CEO’s performance.
3. Are Goodwill CEOs overpaid?
Whether Goodwill CEOs are overpaid is a matter of debate. Some argue that high salaries divert resources from programs and services, while others contend that competitive pay is necessary to attract talented leaders.
4. Where can I find information about CEO salaries at Goodwill?
You can find information about CEO salaries in the organization’s IRS Form 990 filings, which are publicly available on websites like GuideStar.
5. How does Goodwill Industries International (GII) fit into the compensation structure?
GII oversees and supports the independent Goodwill organizations but does not directly control their finances or executive compensation. Each local agency sets its executive compensation based on its unique circumstances.
6. What are the responsibilities of a Goodwill CEO?
The responsibilities of a Goodwill CEO include strategic leadership, financial management, community engagement, and operational oversight.
7. How do local Goodwill organizations manage their finances?
Local Goodwill organizations operate autonomously, managing their finances and executive compensation independently. They generate revenue from various sources and allocate it to programs, services, and employee compensation.
8. Are there ethical considerations when evaluating CEO compensation?
Yes, ethical considerations are paramount. The CEO should be compensated fairly, but not excessively, and the compensation-setting process should be transparent and accountable.
9. What is the role of the board of directors in setting CEO compensation?
The board of directors is responsible for setting CEO compensation, often with the assistance of a compensation committee or independent consultant.
10. How can I assess the financial health of a Goodwill organization?
You can assess the financial health of a Goodwill organization by reviewing its IRS Form 990 filings, annual reports, and other publicly available information.
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