Knowledgebase

Compiling Nonprofit Payroll Estimates (Method Note)

Nonprofit payroll can be estimated using data contained in the Core holdings from FORM 990 only (Lines 25, 26, and 29--Compensation of Key Employees, Other Salaries and Wages, and Payroll Taxes). The Core files do NOT have pension plan contributions, "other employee benefits" or data from Line 12 of Form 990-EZ (salaries, etc.)

The GuideStar-NCCS National Nonprofit Database (NND) contains all the relevant lines from Form 990 and Form 990-EZ. Researchers should be able to compile rough estimates using Core, or the NND for more precise estimates.

The Statistics of Income files are likely to have the most accurate estimates of payroll because expenses contained in "other expenses" are systematically allocated to a more specific functional expense line where possible. This includes payments to consultants. See the attached methods note.