There is a pay gap among L.A.’s top nonprofit executives.
Arts organizations, including the region’s prominent museums and orchestras, pay the highest executive salaries — as much as 11 times more than what leaders with the largest social services organizations earn, according to annual public filings with the IRS.
The biggest nonprofit in L.A. by expenditures — Los Angeles Lomod Corp., which addresses housing needs for low-income families — paid its president and director, Connie Loyola, a base salary of $126,018 in 2016, the most recent year data was available. That same year, the Los Angeles Philharmonic Association paid its president, Deborah Borda, a base salary of $1,396,181, according to public filings.
“Not only do arts organizations pay better, but so do education and health organizations — they pay significantly more than social services or human service sector jobs,” said Gayle Northrop, a senior faculty adviser with the UCLA Anderson School of Management, who consults on the social impact of nonprofits.
Northrop and others said that pay disparity is largely due to the sources of revenue that support the organizations, including whether funding comes from government agencies or philanthropic donors with deep pockets.
The biggest nonprofits in the county, as ranked by expenditures, are largely funded through governmental programs; executives at these organizations earn far less than their counterparts at arts and music nonprofits.
“They don’t raise any money,” said Adlai Wertman, a professor at USC’s Marshall School of Business social entrepreneurship program. “The other folks raise (tens) if not hundreds of millions” of dollars, he said.
Loyola, a 14-year veteran of Los Angeles Lomod Corp., earned the least among executives at the top 10 nonprofits on the Business Journal’s list of the 50 largest nonprofit organizations. Lomod, which works with the Department of Housing and Urban Development, reported the top expenditures of $478 million in 2016, the most recent year data was available, as well as assets of $28 million and $489 million in revenue.
The second largest nonprofit, Chatsworth-based North Los Angeles County Regional Center, is one of 21 private nonprofits under contract with the California Department of Developmental Services to provide assistance to individuals with disabilities. In 2016, the organization paid $283,474 to Executive Director George Stevens.
The county’s highest paid executives work for Museum Associates and the L.A. Phil, organizations that ranked Nos. 8 and 9, respectively, on the Business Journal’s nonprofits list.
The orchestra reported 2016 tax year assets of $328 million, with $141.3 million in revenue and $130.4 million in expenditures. That year, it paid Borda, who has since departed for the New York Philharmonic, nearly $1.4 million.
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