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Oh, thank you, thank you for saying this. I have long argued that nonprofits need to be just as hard-nosed as for-profits businesses in making tough decisions about terminations, accountability, etc., because the work many nonprofits are doing is too important for it to be any other way. If you believe in your work, it follows that you must have high standards and enforce them.


Couldn't have said it any better. And hand-in-hand with the accountability must go competitive pay.

Thanks for sharing your thoughts. As a non-profit leader yourself, you know better than anyone!

Correct again. But this is a terrible time for performance review at charities, where their funding sources dry up fastest in bad economic times and ignorant amateur boards (you all know what I mean) frequently (a) don't know how to evaluate performance at a non-profit, (b) feel free to act irresponsibly because they aren't paid a fee for board service, (c) expect the talent to work for slave wages, or (d) all of the above. Intrinsic rewards have limits; "warm & fuzzies" don't pay the bills, and you can't always assume people won't quit when neglected. See the figures at the bottom of page 2 of the October 2008 ERI Update Newsletter (http://www.erieri.com/newsletter/_Data/2008/Oct2008.pdf) for examples of nonprofit CEO pay by industry. A rainmaker is always valuable, and the head of a nonprofit like symphony orchestra is probably more crucial (if not irreplaceable) than the head of a similarly-sized private commercial business enterprise. Great struggles lie ahead for nonprofits.

Well said, Jim. Thanks!

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About The Author

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    Compensation consultant Ann Bares is the Managing Partner of Altura Consulting Group. Ann has more than 20 years of experience consulting with organizations in the areas of compensation and performance management.

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