While foundation staff compensation and benefits increased during a time of record inflation in 2023, turnover rates increased as well, a report from the Council on Foundations finds.

Based on salary data on more than 10,000 full-time staff from nearly 1,000 grantmaking organizations, the 2023 Grantmaker Salary and Benefits Report (428 pages, PDF) found that in the wake of the highest peak inflation rate (9.1 percent) in 40 years, salaries rose an average of 5.49 percent (up from 3 percent in the 2022 survey). CEO/CGO (chief growth officer) salaries increased 5.76 percent (up from 4.58 percent), while program officer salaries rose 5.26 percent (up from 1.19 percent). Among foundations that awarded bonuses, 4.85 percent reported giving them specifically to address inflation. Even with this adjustment, turnover rates rose, with 57 percent of respondents reporting staff departures (up from 52 percent) and the mean turnover rate rising to 13.1 percent (from 11 percent). The administrative turnover rate was particularly high, at 37.5 percent, up from 33 percent.

The report also found a slight increase in staff diversity, as people of color accounted for 32.7 percent of full-time staff (up from 31 percent in 2022), and 14.9 percent of foundation CEOs (up from 12 percent in 2021). However, while the share of female CEOs stayed relatively steady at 61 percent, the gender pay gap persisted, with female CEOs making 85.3 percent ($201,382) of the median salary reported for male CEOs ($236,080).

“There’s no question that this year’s results show how philanthropy is responding to both the economic climate and the lingering effects of the pandemic,” said Council on Foundations president and CEO Kathleen Enright. “I’m heartened to see foundations responding with needed pay and benefit bumps. It’s also exciting that, for another year, grantmaking organizations were enriched by broader racial diversity in both staff and CEO roles.”

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