Capping Pay of Nonprofit Executives

The state of Florida thinks that in addition to knowing how to run a government, they know how to run a nonprofit.  The Senate Commerce and Tourism Committee approved by a 4-0 vote on January 26 to cap salaries for nonprofit executives to no higher than the state’s highest paid elected official.

This number, $129,972, would be the ceiling for nonprofits that receive more than two-thirds of their funding from the state.

There are so many reasons why this is a bad idea it is hard to know where to begin.  If a nonprofit is receiving state money and is not doing a good job, by all means the state should terminate funding.  But by making a statement that a nonprofit executive director can only make so much, you limit the field of qualified applicants.  Nonprofits are businesses.  And to attract qualified personnel you need to pay a fair market wage.

Florida is a state where the University of Florida football coach makes over $2 million a year but someone trying to improve the quality of life

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