Getting Started

compensator is a package to generate CEO compensation appraisals for nonprofits.

Add brief paragraph about why we built this package.

Every appraisal will have three steps.

User provides basic information about the nonprofit they want to obtain an appraisal for.
User provides characteristics of organizations they want to compare the input nonprofit to.
Returns an appraisal for CEO compensation for it input nonprofit.

General Information

For information about NTEE codes and structure see the NTEE Code Vignette.
For details on how the appraisal is calculated see the Appraisal Process Vignette. This vignette also includes a detailed toy example of the appraisal process.
For details on calculating distances between nonprofits see the Distance Calculations Vignette.

A Few Simple Examples

Example 1

Say Nonprofit X wants an appraisal for their CEO compensation. Nonprofit X is a shelter for women who have experienced domestic violence located in Kansas City, MO. Their annual expenses are approximately $5,650,0000.

Step 1: The user defines basic information about their organization using the get_org_values() function. See the documentation of get_org_values() for detailed information about the arguments.

orgX <- get_org_values(state = "MO",
                      location.type = "metro",
                      total.expense = 5650000,
                      ntee = "P43")

Step 2: The user defines characteristics about the organizations they want to compare Nonprofit A to in a list with items:

type.org: vector of the types of organization you want to include. Options are RG, AA, MT, PA, RP, MS, MM, and/or NS.
broad.category: vector of broad categories you wish to include in returned data set Options are ART, EDU, ENV, HEL, HMS, IFA, PSB, REL, MMB, UNU, UNI, and/or HOS
major.group vector: of major groups you wish to include in returned data set. Options are A-Z.
division: vector of divisions you wish to include. Divisions exist entirely inside major groups. We suggest you do not use this parameter if you have more than one item in major.group. Options are 0, 2, 3, …, 9 (1 is not an option.
subdivision: vector of subdivision you wish to include. Subdivisions exist entirely inside divisions. We suggest you do not use this parameter if you have more than one item in division. Options are 0 - 9.
univ: TRUE of FALSE. Are universities to be included?
hosp: TRUE of FALSE, Are hospitals to be included?
location.type: vector of “metro”, “suburban”, “town”, and/or “rural” for which city types to include
state: vector of 2 letter state abbreviations to be included
total.expense: vector of c(min,max) of range of total expenses to be included

See Distance Calculations Vignette for detailed information about these options.

For our example, say the user is only interested in comparing themselves to other nonprofits involve in health care, mental health & crisis intervention, voluntary health associations & medical disciplines, crime & legal-related, and general human services. They also only want to consider other nonprofits with total expenses between $1,000,000 and $10,000,000 located in Missouri, Kansas, Oklahoma, Arkansas, Iowa, and Illinois.

search.criteriaX <-
  list(
    type.org = "RG",
    broad.category = c("HEL", "HMS"),
    major.group =  c("E", "F", "G", "I", "P"),
    division = NA,
    subdivision = NA,
    univ = FALSE,
    hosp = FALSE,
    location.type = NA,
    state = c("MO", "KS", "OK", "AR", "IA", "IL"),
    total.expense = c(1000000 , 10000000)
  )

Step 3: The user inputs their org and search.criteria lists into the get_apprasial() function. The result is a list with three items:

suggested.range is the final appraisal. This is the range of salaries that we believe are reasonable for the CEO of Nonprofit X accounting for the CEO pay of all other nonprofits that match the search.criteria.
suggested.salary is the weighted average of CEO compensations for all organizations that matched the search criteria, inversely proportional to the similarity between the given organization and Nonprofit X.
reference.set is the set of all nonprofits that match search.critera and their respective attributes.

See documentation for get_apprasial() for more information about these values.

See Appraisal Process Vignette for detailed information about generating suggested.range and suggested.salary.

appraisalX <- get_appraisal(orgX, search.criteriaX) 
appraisalX$suggested.range

## [1]  81483.2 281094.6

We conclude that a reasonable salary range for a CEO of Nonprofit X is $81,483 to $281,095.

Example 2

Step 1: Say Nonprofit Y is a wildlife-preservation nonprofit located in Elko County, Nevada with annual expenses of approximately $1,575,000.

orgY <- get_org_values(state = "NV",
                      location.type = "rural",
                      total.expense = 1575000,
                      ntee = "D30")

Step 2: They would like to compare themselves to all other animal related nonprofits located not located in metropolitan areas with annual expenses less that $10,000,000.

search.criteriaY <-
  list(
    type.org = "RG",
    broad.category = c("ENV"),
    major.group =  c("D"),
    division = NA,
    subdivision = NA,
    univ = FALSE,
    hosp = FALSE,
    location.type = c("rural", "town", "suburban"),
    state = NA,
    total.expense = c(0 , 10000000)
  )

Step 3: They generate their appraisal:

appraisalY <- get_appraisal(orgY, search.criteriaY) 
appraisalY$suggested.range

## [1]  82133.37 167463.17

We conclude that a reasonable salary range for a CEO of Nonprofit Y is $82,133 to $167,463.

Example 3

Step 1: Say Nonprofit Z is a nonprofit dedicated to fundraising for other nonprofits dedicated to the treatment and prevention of cancer. They are located in Washington D.C. with annual expense of $13,000,000.

orgZ <- get_org_values(state = "DC",
                      location.type = "metro",
                      total.expense = 13000000,
                      ntee = "G1230")

Step 2: They would like to compare themselves to other fundraising nonprofits regardless of what type organizations they provide support to.

search.criteriaZ <-
  list(
    type.org = c("MS", "MM", "NS"),
    broad.category = NA,
    major.group =  NA,
    division = NA,
    subdivision = NA,
    univ = FALSE,
    hosp = FALSE,
    location.type = NA,
    state = NA,
    total.expense = c(0 , Inf)
  )

Step 3: They generate their appraisal:

appraisalZ <- get_appraisal(orgZ, search.criteriaZ) 
appraisalZ$suggested.range

## [1]   42277.16 1068745.81

We conclude that a reasonable salary range for a CEO of Nonprofit Z is $42,277 to $1,068,746.

Olivia Beck

18 October, 2023

General Information

A Few Simple Examples

Example 1

Example 2

Example 3