Money Matters: public sentiments towards charity sector pay

Piggy bank hanging from a wall

Money Matters: public sentiments towards charity sector pay

Armed with new research on public attitudes towards charity sector compensation, this week we're exploring how charities can address the public's worries around executive pay, and where these anxieties are coming from.

Ben Roberts

A few years ago, I was approached by a street fundraiser at Tower Bridge. I had stopped to learn more about the charity he was collecting for, when a stranger approached and interjected: “Don’t bother giving, mate. Their CEO is on six figures, that’s where the money’s going.” Whether or not this man had done his research, I don’t know – I assume it was a generalisation. But he took such umbrage with the notion of charity sector CEOs taking home large salaries that he was ready to jump in and argue against fundraising in general. 

This stranger was extreme in his belief, but isn’t the only person who doesn’t agree with the current state of charity sector salaries. Our public surveys have revealed that there are often clear preconceptions around who takes home a wage, and clear preferences for who should be allowed to do so. In our most recent round of research last month, we asked the public for their input to help us identify trends in this field – here’s what we found.

 

Executive Salaries

Of all the positions within the charity sector, CEO is the most recognised to be paid. Only 6% of the public do not imagine that charity CEOs take home a salary. This isn’t too surprising, given that it’s a visible role, widely understood by the public, and this position typically receives more press than any other. We see no shortage of stories about charity CEOs and their rising salaries, which are an important benchmark to follow, yet the perceptions of a CEO are often linked to the charity itself. As a result, these stories become an impactor on the public view of the charity’s spending and efficiency.

Directors and presidents are also widely recognised to be paid roles. But do people think that they should be? Well, only 50% of the public told us that CEOs should take home a salary, and even fewer said the same for directors (44%) and presidents (39%). These figures really drive home the difficulties that charities face with their supporters when it comes to demonstrating spending efficiency. Only half of the public think that CEOs should be paid at all – so how can you effectively explain the rising incomes that they receive

Which roles are perceived as necessary to fund?

Despite the negativity towards executive pay, some roles are viewed more leniently when it comes to a salary. For example, 65% of the public are in favour of support staff receiving pay. This isn’t an enormous leap from the figure for CEOs mentioned above, but this difference may have come about as a reflection of the negative connotations that the CEO role carries in the public imagination.

The most widely accepted role in need of pay is in charity shops. While the public is split fairly evenly on whether helpers in these shops should be paid, 68% told us that shop managers deserve pay. This is by far the higher proportion of the public who agree that payment for this work is necessary, but why? Perhaps this is due to the day-to-day visibility of people in these roles, and the acknowledgment that shop management is worthy of payment in general. In either case, there is at least a precedent for some charity workers being seen as deserving pay for their input.

 

Tackling the issue

This challenge reflects one of the most crucial comms challenges that charities currently face: how do you reassure your supporters that money spent on salaries is a worthwhile spend? Well, some charities tackle this head-on. 

On their website, financial information and aid charity Turn2us explain their payment decisions as clearly as possible: 

“We believe that although the charity sector can’t, and shouldn’t, compete with the commercial sector on pay, we must offer a fair salary … proportionate to the complexity and responsibilities of each role.”

This is a well-defined argument that addresses the concerns of supporters head-on, helping them to rationalise that full-time work requires enough pay to live and thrive on. Similarly, Save The Children has this to say:

“We acknowledge that debates over pay are important and reflect genuine public concerns. We are committed to achieving the right balance between recognising these concerns while ensuring our salary levels help attract the talent we need.”

Explaining that compensating your workers is the reason that that your charity performs well, rather than being a barrier to it, is an effective argument against the fears around salaries. Competitive hiring is a must within this sector, which can’t be fuelled simply on goodwill. These statements provide fantastic reasoning, boiling down to one eye-opening question: would YOU be able to work for free? 

 

If you're interested in reading more of our research on public attitudes across the charity sector, consider downloading a briefing pack below.
 

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