Canadian Compensation and Benefits Report Results
Earlier this week, AFP released the 2024 Compensation and Benefits Report, which includes information on salary and benefits trends in the United States and Canada. Below are some of the highlights specifically for the Canadian fundraising sector.
Changes in Average and Median Salary
The average fundraising salary in Canada decreased by 1.3% in 2023, from $99,814 to $98,487. While this may be partially attributed to the relatively small sample size for Canadian respondents (393), even the U.S., with its larger sample, reported only a .8% increase.
It appears both countries are seeing some wage stagnation following the large jumps of 6.7% (U.S.) and 5.9% (Canada) that we saw last year, as nonprofits attempted to keep pace with extreme inflation rates.
While we did see an increase in the median Canadian salary, which rose 2.3% from $88,000 in 2022 to $90,000 in 2023, this modest growth also pales in comparison to the 7.3% jump in median salary last year.
Reduction in the Gender Pay Gap
Despite these overall salary challenges, however, there was one major bright spot for Canadians this year — a drop in the gender wage gap, which fell from 11% in 2022 to 4.4% in 2023. This is in contrast to an increase in the United States, from 15% up to 21.2%.
Impact of Salary for Job Seekers
This tepid salary growth that fails to keep pace with recent inflation remains a strong contributing factor in the high turnover rates plaguing the fundraising profession. Once again, in this year’s report, over 50% of survey participants indicated they either looked for a job with a different organization or planned to become self-employed during 2023. Canadians who reported looking for a new position earned 11% less than the report average, highlighting the continued importance of financial compensation in nonprofit career decisions.
Beyond the Paycheck: The Importance of Flexibility
As the cost of living continues to rise and salaries stagnate, nonprofits are recognizing that to attract and retain top talent they will need to evaluate their compensation packages wholistically and identify how to differentiate themselves in a competitive job-seeker market.
Though, as we have seen, salary remains a strong motivating factor, work/life balance has become an increasingly important priority as well, providing an opportunity for organizations with smaller budgets.
During the pandemic, Canada, even more so than the U.S., embraced flexibility and the possibilities of remote work. In the 2022 AFP Compensation and Benefits Report, 92% of Canadians reported the ability to work from home at least part-time, compared to 68% of U.S. respondents. Similarly, 56% of Canadian fundraisers could arrange flexible work schedules, compared to 46% of Americans.
In the most recent report, however, we’ve seen a significant decline in these opportunities – a drop from 92% to 68.2% in full or part-time remote work and a drop from 56% to 32.1% in flexible scheduling. We also saw the ability to take comp time (ex. a morning off when you work an evening event) drop from 46% to 39.7% in the 2023 study.
This return to pre-pandemic, traditional working conditions may present challenges for those who have grown accustomed to the benefits of remote work, offering a significant opportunity for those organizations willing to continue or expand their work-from-home policies.
Conclusion
The AFP Foundation for Philanthropy’s 2024 Compensation and Benefits Report is an essential tool, for both job seekers and employers, as they navigate compensation negotiations. These benchmarks can be used to ensure salaries that are in line with industry standards and can help lift up and correct inequities in compensation.
It can also provide inspiration for employers interested in augmenting their compensation packages with benefits that improve flexibility and work/life balance, priorities that are becoming increasingly important in modern career decisions.
We encourage members to download the full report and take advantage of this important data as you advocate for yourself, your colleagues, and your profession.
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